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The Tax Publishers2020 TaxPub(DT) 1468 (Guj-HC) : (2020) 423 ITR 0596 : (2020) 317 CTR 0558 : (2020) 275 TAXMAN 0328 INCOME TAX ACT, 1961
Section 2(15), proviso 11
AO had clearly taken the view that profit making was not the driving force or obective of assessee. It was indicative of the fact that any income generated by assessee from events like Garba did not find its way into prokets of any individual or entities. It had to be utilized fully for the purposes of objects of assessee which were charitable in nature i.e. mobilizing resources from local communities and to organize medical camps for thalassemia affected children, etc. Accordingly, proviso to section 2(15) did not get attracted and denial of exemption under section 11 was not justified.
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Charitable trust - Exemption under section 11 - Applicability of proviso to section 2(15) - Surplus earned from incidental activities applied for predominent object being charitable in nature
Assessee-society formed with objectives of mobilizing resources from local communities and to organize medical camps for thalassemia affected children and to provide vocational training to disabled orphans and to undertake various program for empowering women including providing midday meal to poor students, claimed exemption under section 11. AO denied exemption on the ground that activities like organizing event of Garba including sale of tickets and issue of passes, etc. amounted to business and proviso to section 2(15) got attracted to assessee's case.Held: AO had clearly taken the view that profit making was not the driving force or obective of assessee. It was indicative of the fact that any income generated by assessee from events like Garba did not find its way into prokets of any individual or entities. It had to be utilized fully for the purposes of objects of assessee which were charitable in nature. Accordingly, proviso to section 2(15) did not get attracted and denial of exemption under section 11 was not justified.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
IN THE GUJARAT HIGH COURT
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