9911796707
|
Home
Issues involved:
The only ground taken by the revenue is regarding the exemption u/s 11 of the Income-tax Act, 1961, for activities involving hiring of auditorium and providing space for rent, contending that they are commercial activities and not charitable. Details of the Judgment: Issue 1: Exemption u/s 11 of the Income-tax Act, 1961 The revenue challenged the allowance of exemption u/s 11, arguing that the activities of hiring auditorium and charging maintenance fees are commercial, requiring separate books of account u/s 11(4A). The AO disallowed deductions and depreciation, treating the activities as business. The CIT(A) allowed the appeal based on previous Tribunal decisions and the revenue appealed. Issue 2: Charitable status of the society The revenue contended that there was no evidence of charitable activities by the society, emphasizing the need for compliance with section 11(4A). In response, the counsel highlighted the society's long-standing charitable status and cited a Tribunal decision from 1999, unchallenged by the revenue, supporting the society's position. The Tribunal considered the facts and submissions, noting the similarity to a previous case involving the Galib Institute. In the Galib Institute case, income from rent was deemed non-profit as it served the trust's objectives, leading to exemption u/s 11. The Tribunal upheld the decision, emphasizing that the hiring of the auditorium aligned with the trust's objectives. As the revenue had not contested the earlier order, the Tribunal dismissed the appeal, affirming the society's entitlement to exemption u/s 11. The appeal was ultimately dismissed, upholding the society's entitlement to exemption u/s 11 under the Income-tax Act, 1961.
|
