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2019 (11) TMI 460

..... ssessee is entitled to the benefit of section 11 of the Act on compliance of the other relevant provisions of the Act. Further, on perusing the objects of the assessee, as observed from the order of the Ld. AO extracted hereinabove, it is apparent that the activities relate to preservation of environment, forests and wildlife. The commercial activities mentioned in the Memorandum of Association are only ancillary objects supporting the main objects of the assessee. Therefore, we are of the considered view that the assessee’s objects fall under the 6th limb of section 2(15) hence in the case of the assessee the proviso to Section 2(15) of the Act is not applicable. On examining the revenue received by the assessee amounting to ₹ .....

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..... he Finance Act, 2009 with retrospective effect from 1/4/2009. (iii) The Ld. CIT (A) has erred in confirming the order of the Ld. AO who had treated several residual receipts as the taxable income of the assessee by holding that assessee s claim of exemption U/s. 11 cannot be accepted. 3. Brief facts of the case are that the assessee is a company engaged in charitable activities in the nature of preservation of environment, forests, wildlife etc., registered U/s. 12A of the Act, filed its return of income on 7/1/2014 declaring NIL income. Subsequently the case was taken up for scrutiny under CASS. During the course of scrutiny assessment, it was observed by the Ld. AO that the assessee has claimed exemption of its income to the extent of  .....

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..... f the forest products and sale of the same. By no stretch of imagination these activities can be considered as a charitable activity. 28. From the memorandum of association of the assessee, it can be seen that the assessee's main objectives are as shown below: (i) To develop land for raising Forest Plantation and in particular Eucalyptus, Tropical- Pines, Rubber, Cashew, Cocoa and such other suitable species in the State of Andhra Pradesh for the purpose of development of industries based on their produce. (ii) To plant, grow, cultivate, produce and raise plantations of all kinds of varieties of Forest plants, trees and crops and natural products of every kind and other agricultural crops and to buy, sell, export, import, process, distr .....

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..... ivities including water-shed management, preservation of water tables, conservation of natural forests, creation of employment opportunities to the tribal/rural population etc. Further from the final accounts of the assessee, it is seen that there is no accounts involving the activities including water-shed management, preservation of water tables, conservation of natural forests, creation of employment opportunities to the tribal/rural population etc. From the accounts it becomes clear that the assessee was not involving in any of the charitable activities as mentioned above in this para. 31. From the accounts also becomes clear that the assessee is engaged in only activities of cultivation/ growing of forest products including Eucalyptus, .....

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..... . CIT (A) had erroneously held stating, 12A application must be submitted every year and registration obtained for availing the benefit of section 11 of the Act. The Ld. AR submitted that the entire activities of the assessee-company were with respect to protection of environment, forests and wildlife falling in the 6th limb of section 2(15) of the Act and therefore proviso to section 2(15) of the Act is not applicable in the case of the assessee. It was therefore pleaded that the tax imposed on the assessee by treating the amount of ₹ 3,70,59,197/- as taxable income may be deleted. The Ld. DR on the other hand stoutly argued in support of the orders of the Ld. Revenue Authorities and requested for confirming those orders. 6. We have .....

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