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TMI Blog2024 (7) TMI 1497X X X X Extracts X X X X X X X X Extracts X X X X ..... as "the ITAT") whereby it allowed the Appeal filed by the respondent-Board and set aside order dated 11.08.2006 passed by the Commissioner of Income Tax, Panchkula under Section 12 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") whereby it had cancelled the Registration of the respondent-Board. 2. Learned counsel for the appellant-revenue submits that in light of the recent judgment passed by the larger Bench of the Hon'ble Supreme Court, in the case of Assistant Commissioner of Income Tax (Exemptions) Vs. Ahmedabad Urban Development Authority; (2022) 449 ITR 1, order dated 28.02.2008 passed by the ITAT deserves to be set aside and the matter should be remanded back to the ITAT for re-examination. It is his submission th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation of conclusions 253. In view of the foregoing discussion and analysis, the following conclusions are recorded regarding the interpretation of the changed definition of "charitable purpose" (w.e.f. 01.04.2009), as well as the later amendments, and other related provisions of the IT Act. A. General Test Under Section 2 (15) A.1 XXXX 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of food grain, development and town planning, etc.) may resemble trade, commercial, or business activities. However, since their objects are essential for advancement of public purposes/functions (and are accordingly restrained by way of statutory provisions), such receipts are prima facie to be excluded from the mischief of business or commercial receipts. This is in line with the larger bench judgments of this court in Ramtanu Cooperative Housing Society and NDMC (supra). B.2. However, at the same time, in every case, the assessing authorities would have to apply their minds and scrutinize the records, to determine if, and to what extent, the consideration or amounts charged are significantly higher than the cost and a nominal mark-up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the said case of Assistant Commissioner of Income Tax (Exemptions) (Supra), the apex Court has reiterated the view taken earlier in the case of Commissioner of Income Tax Vs. Gujarat Maritime Board; 2007 (12) SCR 962. 9. In view of the aforesaid, we find that the ITAT has considered the objects for enactment of the Haryana Rural Development Act, 1986. The Board was constituted in terms of the said Act with the purpose of augmenting agricultural production and improving market sales. The activities have been enumerated to improve development of roads, establishment of dispensaries, water supply & sanitation and other public facilities, conversion of notified market areas falling in rural areas by utilizing technical know-how, constructi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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