TMI Blog2019 (4) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... provides that subject to the provisions of Sections 60 to 63, the income derived from the property held under trust wholly for charitable or religious purposes to the extent to which such income is applied to such purposes shall not be included in the total income of the previous year of the person in receipt of the income. The assessee had invested its surplus funds in specified deposits earning interest which reduced the assessee's loss. In terms of sub-section (1) of Section 11 of the Act, therefore, such income was exempt from tax. The Tribunal, therefore, correctly granted relief to the assessee. No question of law arises. - INCOME TAX APPEAL NO. 235 OF 2017 - - - Dated:- 2-4-2019 - AKIL KURESHI SARANG V. KOTWAL, JJ. Mr. Sure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilities to its members for promotion of the sport. The assessee had invested its surplus funds in the banks thereby earning interest income of ₹ 2.17 Crores during the period in question. The Tribunal noted that the Assessing Officer had disallowed the claim on three grounds namely:- (i) With reference to the proviso to Section 2(15) of the Act; (ii) That the registration of the assessee under Section 12A was withdrawn and (iii) by relying on the decision of the Bombay High Court in case of CIT Vs. Common Effluent Treatment Plant [2010] 328 ITR 362 (Bom) to hold that the interest received from the nonmembers is not exempt on the principle of mutuality. The Tribunal noted that the assessee was incurring losses, the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation provided the same is not excluded by virtue of clauses (i) and (ii) of the proviso with which we are not concerned. In the present case, the main object of the assessee club as noted above is to provide golf facilities to the members for promotion of the sport. The Tribunal correctly held that there was no element of the assessee's activity being in the nature of trade, commerce or business. Once the applicability of the proviso to Section 2(15) of the Act is ruled out, the question of the exemption under Section 11 of the Act would arise. 5. Clause (a) of sub-section (1) of Section 11 provides that subject to the provisions of Sections 60 to 63, the income derived from the property held under trust wholly for charitable or rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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