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2022 (8) TMI 1035 - ITAT VISAKHAPATNAMExemption u/s 11 - expenditure incurred towards “help to the poor” - case was selected for scrutiny under CASS - AO concluded that considering the business nature of the assessee”s operation on commercial principles and hallow claims of “help to the poor” by the assessee , it is seen that the assessee is not engaged in any charitable activity at all - since the assessee is not operating as per its objects, the assessee is not entitled to claim any exemption u/s. 11 - HELD THAT:- We noted that the objects of the assessee-society ie., establishing and running a small scale unit for training and self sufficiency of rural poor women is of the nature of business activity which is not of charitable nature. The onus is on the assessee to prove with documentary evidence to establish that the assessee”s activities are not of business nature but of charitable as claimed by the assessee. Revenue Authorities have clearly observed that the assessee”s claim of relief to the poor or help to the poor is not correct since the income and expenditure statements filed by the assessee reflects substantial profits from the activities of the assessee and therefore the profit motto exists very much. It is a fact that granting of registration u/s. 12A does not confer any benefits of exemption of tax u/s. 10 or 11 of the Act which has to be independently decided. Decisions of the Ld. Revenue Authorities are fair and reasonable and does not call for any interference since the assessee”s activities are not charitable in nature and therefore the exemption U/s. 11 of the Act cannot be granted to the assessee. Accordingly, we upheld the decision of the Ld. CIT(A) and dismiss the grounds raised by the assessee.
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