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2019 (6) TMI 991 - ITAT DELHIExemption u/s 11 & 12 - charitable activity u/s 2(15) or not? - as per AO activities of renting out the property has no nexus with the promotion of Fine Arts & Crafts objective - the rent being received by the society is subject to TDS is a pure rent - HELD THAT:- As decided in assessee's own case [2019 (2) TMI 905 - ITAT DELHI] Assessee society has carried out activities in the form of annual art exhibitions, camps for senior and junior artists, providing maintenance to aged artists etc. It is also not the department’s case that any part of surplus was diverted from the society and applied for any personal benefit of any member or office bearer of the society. Therefore, it can be safely concluded that the dominant activity of the assessee society is not business, trade or commerce and, accordingly, any incidental or ancillary activity like hiring out of art gallery or selling paintings would not also fall within the categories of trade, commerce or business. Proviso to Section 2(15) of the Act, which was inserted by Finance Act, 2008, was directed to prevent the unholy practice of pure trade, commerce and business entities from masking their activities and portraying them in the garb of an activity in the object of a general public utility but was not designed to hit at those institutions, which had the advancement of the objects of general public utility at their hearts and were charity institutions.- Decided in favour of assessee.
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