INCOME TAX ACT, 1961

Section 11 Section 2(15)

Charitable trust - Exemption under section 11 - Charitable purpose - Assessee spending money for activities of medical camps and old age home

Assessee society was registered under the Haryana Registration and Regulation of Societies Act and had also been granted registration as a charitable trust by the CIT, Panchkula under section 12A, vide Order, dt. 17-9-2007. AO noted that the aims and objects of the assessee society were of general nature and did not point to any specific limb of charity as prescribed under section 2(15). He also noted that the society was preaching sermons through satsang, etc., and its main expenditure was towards lungar expenses, satsang expenses, honorarium sevadars and that its receipts were only in the form of donation on account of religious preachings. The AO after considering all these aspects held that the assessee was not eligible to exemption under section 11/12 and denied the same to the assessee. CIT(A) allowed the assessee's appeal. Held: CIT(A) had found that the assessee had all along been allowed exemption under section 11/12 in scrutiny assessment in the past and subsequent years also. He further also had noted that there was no change with respect to the nature of the activities in the impugned year as compared to the earlier and subsequent years. Even otherwise on merits, the CIT(A) had noted the fact that the assessee had been incurring expenditure of Rs. 20,02,167 on running of school which being for the purpose of education qualified as charitable activities under section 2(15) and had spent Rs. 18,67,527 on the activities of running medical camps and old age homes which also qualified as charitable activities in the nature of medical relief to the poor under section 2(15). He had also noted that the lungar expenses were merely provision of food to the attendees of medical camps,in old age homes and Manav Seva Kender. The aforesaid facts have remained uncontroverted before this Tribunal . Moreover, the DR had been unable to point out any infirmity in the same. There was no infirmity in the order of the CIT(A) holding the assessee as carrying out charitable activities within the definition of the same under section 2(15) and eligible for exemption under section 11/12.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

INCOME TAX ACT, 1961

Section 11 read with Section 12

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