INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Applicability of first proviso to section 2(15) -

Assessee society, a statutory body of Government of India, was also registered under section 12A. AO called upon assessee to explain as to why its receipt from fees subscription should not be hit by proviso of section 2(15) and denied the exemption under section 11. Held: Assessee society was receiving fees/subscription as per norms laid down by Government of India. profit motive was thus not visible rather all activities were centered around disciplining, promoting, improving and contributing to similar academic environment and quality of teaching and to enhance knowledge and discipline of educational institutions which were incidental to education and could not be kept under objects of general public utility. AO without proving on record that activities of assessee society were in nature of trade, commerce or business proceeded to deny benefit of section 11, which was not sustainable. First proviso to section 2(15) was, therefore, not applicable and CIT(A) had rightly allowed exemption under section 11.

Relied:Radhasoami Satsang v. CIT (1992) 193 ITR 321 (SC) : 1992 TaxPub(DT) 858 (SC),

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2013-14

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