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2020 (3) TMI 943 - AT - Income TaxExemption u/s 11 - proof of charitable activities u/s 2(15) - HELD THAT:- Objects of the assessee was found to be charitable in nature, for which it was granted registration u/s.12A and also recognized u/s. 10(23C)(vi) vide notification no. 1348 dated 31.10.2007 Assessing Officer without even pin pointing as to which of the activities and the receipt are in the nature of trade and commerce has blindly invoked the amended proviso to Section 2(15) to deny the benefit of Section 11. Nowhere he has pointed out that the motive of the assessee-society was to earn profit and even ignored the fact that assessee society was undertaking of Government of India and all the Trustees are Government Officials and it was constituted to discharge legal obligation set forth for the purpose set out in the memorandum. In the present case, the activities of the assessee's association cannot be termed either "trade" , "commerce" or "business" simply because the assessee association is receiving some charges or fees for rendering services on noncommercial principles to State Road Transport Undertakings and other concern members for a fee or charges. first proviso to section 2(15) of the Act would have been to be read down and interpreted in the context of section 10 (23C) (iv) of the Act as the context requires such interpretation where assessee is not driving primarily by desired or motive to earn profit but to pursue activities in furtherance of its objects of general public utility then it must be recognized as an institution established for charitable purposes. The Hon'ble Delhi High Court in the case of Institute of Chartered Accountant of India vs. DGI [2011 (9) TMI 77 - DELHI HIGH COURT] held that the object of the first proviso to section 2(15) of the Act is to include any transaction for a fee or money and the activity would be business if it is undertaken with the profit motive but in some cases this fact must be determinative and the profit motive test should be specified and viewed in the context of section 10 (23C) (iv) of the Act - Decided in favour of assessee.
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