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2022 (4) TMI 397 - HC - Income TaxExemption u/s 11 and 12 - Whether ITAT was not justified in allowing exemption under Sections 11 and 12 to the assessee, when the actual work of the assessee is to receive and simply transfer grants to other NGOs and the assessee is found to be charging service charges from its donor in various forms like management fee, etc. for execution of projects? - HELD THAT:- Admittedly, the present case is covered by the decision passed by learned predecessor Division Bench of this Court in assessee’s own case for the Assessment Year 2010-11 in CIT (Exemption), Delhi vs. M/s India HIV/AIDS Alliance [2019 (1) TMI 1268 - ITAT DELHI] as held Assessee is a company registered under Section 25 of the Companies Act. It gives 85% of the donation received by it to the Government of India for HIV Aids and only 15% of its total donation is given to other societies for awareness and treatment of poor HIV Patients. The entire amount spent by the Assessee is through societies and trusts. It also runs its own project for the welfare of HIV and AIDS patients. In the above circumstances it has been held that merely because the Assessee charges management fees to defray the administrative costs it would not make its essential activity a business activity - No substantial question of law arises.
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