TMI Blog2023 (4) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. It is also held that it could not be said that the activities carried out by the Assessee were either in nature of trade, commerce or business, for Cess or Fee or any other consideration so as to attract the proviso to Section 2(15) and the same could be said to be for charitable purpose and consequently, the exemption under Section 11 was permitted. When this issue was taken up before the Apex Court [ 2022 (10) TMI 948 - SUPREME COURT] held that section 11(4A) must be interpreted harmoniously with Section 2(15), with which there is no conflict. Carrying out activity in the nature of trade, commerce or business, or service in relation to such activities, should be conducted in the course of achieving the GPU object, and the income, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer disallowed by invoking the provision of Section 2(15) r.w.s. 13(8) of the Act ? [C] Whether, on the facts and circumstances of the case, and in law, the Appellate Tribunal is justified in setting aside the issue of addition of Rs.703,30,00,837 made on account of premium on land and shades back to the Assessing Officer in view of the applicability of Section 2(15) of the Act in place of upholding the decision of Assessing Officer on merits? [D] Whether, on the facts and circumstances of the case, and in law, the Appellate Tribunal is justified in setting aside the issue of depreciation allowance and set-off of brought forward deficit for re-examination at the end of Assessing Officer in view of the applicability of Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Industrial estates in the State of Gujarat and for the purpose of establishing the commercial centers in connection with establishment and organization of such industries. It is also held that it could not be said that the activities carried out by the Assessee were either in nature of trade, commerce or business, for Cess or Fee or any other consideration so as to attract the proviso to Section 2(15) and the same could be said to be for charitable purpose and consequently, the exemption under Section 11 was permitted. The Tribunal allowed the exemption under Section 11 and 12. The revenue s appeal on this ground had not been entertained. 4.When this issue was taken up before the Apex Court by way of Civil Appeal No. 21762 of 2017 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny GPU object, such as development of housing, town planning, development of industrial areas, or regulation of any activity in the general public interest, supply of essential goods or services - such as water supply, sewage service, distributing medicines, of food grains (PDS entities), etc.; (b) While carrying on of such activities to achieve such objects (which are to be discerned from the objects and policy of the enactment; or in terms of the controlling instrument, such as memorandum of association etc.), the purpose for which such public GPU charity, is set-up - whether for furthering the development or a charitable object or for carrying on trade, business or commerce or service in relation to such trade, etc.; (c) Rendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing regard to provisions of the Constitution and the enacted laws, and the observations of this court in NDMC; whether in case surplus or gains accrue, the corporation, body or authority is permitted to distribute it, and if so, only to the government or state; the extent to which the state or its instrumentalities have control over the corporation or its bodies, and whether it is subject to directions by the concerned government, etc.; (f) As long as the concerned statutory body, corporation, authority, etc. while actually furthering a GPU object, carries out activities that entail some trade, commerce or business, which generates profit (i.e., amounts that are significantly higher than the cost), and the quantum of such receipts are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions. 253. A. General test under Section 2(15) A.1. It is clarified that an assessee advancing general public utility cannot engage itself in any trade, commerce or business, or provide service in relation thereto for any consideration ( cess, or fee, or any other consideration ); A.2. However, in the course of achieving the object of general public utility, the concerned trust, society, or other such organization, can carry on trade, commerce or business or provide services in relation thereto for consideration, provided that (i) the activities of trade, commerce or business are connected ( actual carrying out inserted w.e.f. 01.04.2016) to the achievement of its objects of GPU; and (ii) the receipt from such bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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