TMI BlogMeaning of "Charitable Purpose" - Section 2(15)X X X X Extracts X X X X X X X X Extracts X X X X ..... r business, or any activity of rendering any service in relation to any trade, commerce or business , for a fee or any other consideration , irrespective of the nature of use or application, or retention, of the income from such activity. Exception of this proviso:- However, the carrying on commercial activity shall still be regarded as charitable purpose if: Such commercial activity is under taken in the course of actual carrying previous such advancement of any other objective of general public utility AND ; the aggregate receipts from such activity or activity during the previous year, do not exceed 20% of the total receipt of the trust or institution undertaking such activity or activities Limitation on Commercial Activities - Permissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 shall not be available for the previous year in which commercial receipts exceeds aforementioned limits, even if Commissioner of Income Tax has not cancelled the registration of the trust for such previous year .Such exemption shall not be available for such previous year by operation of law i.e section 13(8). 4. Section 10(23C) provides an exemption similar to section 11 12 to certain larger specified charitable organisations. The exemption under section 10(23C) is granted by Government by issuing a notification in the official gazette under section 10(23C). 5. Similar amendment has been carried out in section 10(23C) which provides that exemption under section 10(23C)shall not be available for the Assessment year in which first provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing thereby that the proviso to section 2(15) of the Act would not apply. Promotion of sports and game [ Director of Income Tax (Exemption) Vs Goregaon Sports Club 2012 (4) TMI 214 - Bombay HC ] Promotion of sport games is considered to be a charitable purpose of sport the meaning of section 2(15). Therefore, an associates or institution engaged in the promotion of sports and game can claim exemption under section 11, even if it is not approved under section 10(23) Circular no. 395, dated 24, September, 1984 . providing sports facilities to general public without restriction to any cast, creed, religion or profession is religion for exemption under section 11. Advancement of any object or benefit to the public or section of the public as di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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