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| The Tax Publishers2020 TaxPub(DT) 4204 (Del-HC) INCOME TAX ACT, 1961
Section 14A
Where assessee was incorporated with the object of promoting awareness and information dissemination with respect to automobile industry and was also engaged in advocacy in that industry, it reported receipt of some amounts towards fees for conducting seminars and other like activity then mere circumstance of collection of such amounts did not result in the assessee losing its essential character of being established for charitable purposes.
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Charitable trust - Exemption under section 11 - Receipt of some amounts towards fees - Proviso to section 2(15), whether applies
Assessee was incorporated with the object of promoting awareness and information dissemination with respect to automobile industry and was also engaged in advocacy in that industry. For the relevant year, it reported receipt of some amounts towards fees for conducting seminars and other like activity. AO felt that since the assessee was engaged in providing commercial activity, the proviso to section 2(15) was attracted. Held: In case of India Trade Promotion Organization v. DGIT (Exemptions) (2015) 371 ITR 333 (Del-HC) : 2015 TaxPub(DT) 623 (Del-HC) and Institution of Chartered Accountants of India v. DGIT (Exemptions) (2013) 217 Taxman 152 (Del-HC) : (2013) 358 ITR 91 (Del-HC) : 2013 TaxPub(DT) 2666 (Del-HC), it was held that mere circumstance of collection of such amounts did not result in the assessee losing its essential character of being established for charitable purposes. Following the same, issue was decided in favour of assessee.
Followed:Promotion Organization v. DGIT (Exemptions) (2015) 229 Taxman 347 (Del-HC) : (2015) 371 ITR 333 (Del-HC) : 2015 TaxPub(DT) 623 (Del-HC) and Institution of Chartered Accountants of India v. DGIT (Exemptions) (2013) 217 Taxman 152 (Del-HC) : (2013) 358 ITR 91 (Del-HC) : 2013 TaxPub(DT) 2666 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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