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Issues involved: Appeal against deletion of addition of surplus income by Revenue, interpretation of charitable purposes u/s 2(15) of the Income-tax Act.
Issue 1: Deletion of addition of surplus income The Revenue appealed against the deletion of an addition of Rs. 18,33 crores on account of surplus income by the ld. CIT(A). The assessee had declared income of Rs. 57,14,022 and shown excess income over expenditure of Rs. 13,52,87,764. The Assessing Officer noted discrepancies in the income computation, including interest accrued but not due for certain assessment years. The Assessing Officer assessed the income at Rs. 20,66,71,688, not treating the assessee board as a charitable institute. The ld. CIT allowed relief based on a Tribunal order, which the Revenue challenged. The Tribunal, in a previous order, held that the assessee should be treated as a charitable institute despite amendments in Section 2(15) expanding charitable activities. The Tribunal upheld the ld. CIT(A)'s order, deciding in favor of the assessee. Issue 2: Interpretation of charitable purposes u/s 2(15) The Revenue argued that the assessee, charging fees for services, did not qualify as a charitable institute under Section 2(15) due to engaging in business-like activities. The assessee contended that the Tribunal's previous order supported its charitable status. The Tribunal, referring to the specific provision in Section 2(15) regarding environmental preservation, ruled in favor of the assessee, stating that the assessee fell under this specific category and the residuary clause did not apply. The Tribunal emphasized that a special provision prevails over a general one, supporting the assessee's charitable status. The Tribunal upheld the ld. CIT(A)'s decision, dismissing the Revenue's appeal. Separate Judgement: No separate judgment was delivered by the judges in this case.
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