Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 410 - ITAT SURATExemption u/s 11 & 12 - charitable activity u/s 2(15) - AO disallowed the claim as capital expenditure and accumulation by taking view that the main objective of the assessee was the development of Gem and Jewellery Parks, which has not been completed in a decade’s time - AO invoked the provision of section 13(a) r.w.s.2 (15) and denied exemption under section 11 and 12 - HELD THAT:- As decided in owncase [2021 (7) TMI 555 - ITAT SURAT] the object of the assessee is of general public utility and does not hit by first proviso to section 2(15) of the Act. That being so, we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. The bye laws of assessee`s organization restrict the allotment of plots and receiving contributions from anyone other than members. It is also established that all the contributors as well as beneficiaries of the assessee are its members only and there is complete identity between the contributors and participants. It is further shown from the records that the assessee trust is not providing any services to the persons other than its registered members. The assessee trust does not distribute its profits among members and it does not pay higher remuneration to its employees. It is abundantly clear that the income of the mutual concern falls outside the ambit of charging section 4 of the Income Tax Act and, therefore, outside the tax net. The net effect of applicability of exemption provision in section 11 is also just the same - order on these addition are, therefore, upheld and the grounds of appeal of the Revenue are dismissed.
|