The Tax Publishers2021 TaxPub(DT) 0739 (Del-Trib)

INCOME TAX ACT, 1961

Section 11(4A)

Assessee-society was maintaining schools in furtherance of educational purpose and that also qualified as charitable purpose under section 2(15) and, therefore, receipts on account of franchisee fees were not in the nature of 'business income' within the meaning of section 11 (4A) and therefore, assessee was entitled to exemption under section 11.

Charitable trust - Exemption under section 11 - AO considered receipts on account of franchisee fee as in the nature of business income within the meaning of sub-section (4A) of section 11 -

Assessee, an educational society, claimed exemption under section 11. AO denied exemption on the ground that receipts on account of franchisee fee were in the nature of business income within the meaning of sub-section (4A) of section 11 and assessee failed to maintain separate books of account as per sub-section (12A) of section 2. Held: Assessee, society was maintaining schools in furtherance of educational purpose and that also qualified as charitable purpose under section 2(15) and, therefore, receipts on account of franchisee fees were not in the nature of business income within the meaning of section 11 (4A) and therefore, assessee was entitled to exemption under section 11.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12


INCOME TAX ACT, 1961

Section 11

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