The Tax Publishers2012 TaxPub(DT) 2094 (Mad-HC) : (2012) 048 (I) ITCL 0084 : (2012) 347 ITR 0321 : (2012) 250 CTR 0070 : (2012) 070 DTR 0219

Income Tax Act, 1961

--Deduction under section 80G--Renewal of approval Trust existing for charitable purpose--The objects of assessee-trust is to conduct periodical meetings on professional subjects and to achieve the said objects, assessee was publishing books, booklets, etc., on professional subjects and selling the same only on the subjects related to audit and not on any other subject. Those books were primarily sold only to the members of the society. Those books were also made available for sale to the general public aiming to help the society to get better, well equipped and skilled set of chartered accountants for maintaining audit quality. Revenue refused the request of renewal under section 80G on the ground that these activities of trust were commercial in nature and falls within the amended provision of section 2(15). Held: Activities of the-assessee trust in publishing and selling books of professional interest, which were meant to be used as reference material even by the general public as well as the professionals in respect of bank audits, tax audit, etc., cannot be construed as commercial and it would only be charitable in nature. Therefore, assessee was entitled for approval under section 80G.

Income Tax Act, 1961 Section 80G

IN THE MADRAS HIGH COURT

D. MURUGESAN & P.P.S. JANARTHANA RAJA, JJ.

DIT v. The Chartered Accountants Study Circle

Tax Case (Appeal) No. 593 of 2011

13 February, 2012

Income-tax Act, 1961, ss. 2(15) & 80G(5) In favour of: Assessee

Appellant by : T. Ravikumar,

JUDGMENT

D. Murugesan, J.

This tax case appeal is filed by the Revenue, raising the following substantial question of law :

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