9911796707
TMI Blog1990 (5) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... om the sale of cards as taxable and accordingly charged income-tax inclusive of surcharge amounting to Rs. 44,501, On that interest under section 139(8) was charged at Rs. 3,004 and interest under section 217 was charged at Rs. 18,801. The first appellate authority held that in view of the provisions of section 11(4A) of the IT Act, the income from sale of greeting cards is exigible to tax. 3. Smt. Asha Vijayaraghavan & Shri N. Devanathan, Ld. counsels for the assessee submitted before us that the assessee trust did not carry on any business activity. Therefore the case does not come within the ken of section 11 (4A). According to the learned counsel the main object of the trust is to build, construct, maintain, establish and afford financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institution is in the form of donations, gifts, grants and sponsorships. In order to augment its resources for performing the public charitable object, the institution has been carrying on the activity of printing and distributing new year greeting cards. The surplus from which is purely applied in furtherance of the objects of the Trust. It would be pertinent to note that the several well-wishers of the Institution contribute to the charitable work of the organisation by taking up these greeting cards. The Trust does not carry out this activity with a motive of profit, but only as a fund raising measure. The proceed realised from the distribution of new year cards is made possible because of the benevolent attitude of the well-wishers of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sman. But that cannot disentitle the assessee for exemption under section 11." The learned counsels further relied on the decision of ITAT, Hyderabad Bench ' A ' in the case of S.R.M.T. Staff Association v. ITO [1986] 16 ITD 448. The Tribunal followed the decision of CIT v. Trustees of Visha Nima Charity Trust [1982] 138 ITR 564 (Bom.) and held that the contributions received by way of tickets and for advertisements should be treated as merely voluntary contributions even though the advertisement charges were at prescribed rates and there was also an appeal for advertisements. Hence the impugned amount received by the assessee by way of advertisements in its souvenir should be regarded as voluntary contributions or donations and they could ..... X X X X Extracts X X X X X X X X Extracts X X X X
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