INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Charitable purpose -

AO was of the view that assessee-society was not eligible for exemption under section 11. He alleged that the assessee was rendering specific services to its members as well as non-members and was charging fees from them and as such, its activities were not in charitable nature. He further alleged that in terms of proviso to section 2(15), the assessee's activities were in the nature of trade and commerce or business. He further alleged that principle of mutuality was not applicable in case of the assessee as the contributions by substantial members were over and above Rs. 50,000 and accordingly, they became beneficiaries as per section 13(3)(b). Held: It was found that the income of the assessee was from membership fees from its members, specialized services, services and facilities, meetings, seminars and training programmes, sale of publication, etc. Further, none of the activities of the assessee fell in the category as envisaged in the proviso to section 2(15). Further, the Revenue consistently allowed the exemption under section 11 to the assessee in the earlier assessment years by holding that the activities of the assessee were charitable in nature and hence, it was eligible for deduction under section 11.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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