2023 (7) TMI 1551 - SCH - Income Tax

Exemption u/s 11 - exemption disallowed on the ground that registration u/s 12AA granted to the assessee stood cancelled - what s the charitable nature of activities carried out by assessee in terms of Section 2(15)? - as decided by HC 2022 (8) TMI 1400 - ALLAHABAD HIGH COURT for the applicability of proviso to Section 2(15) the activities of the trust should be carried out on commercial lines with intention to make profit. Where the trust is carrying out its activities on noncommercial lines with no motive to earn profits for fulfillment of its aims and objectives which are charitable in nature and in the process earn some profits the same would not be hit by proviso to section 2(15). The aims and objects of the assessee-trust are admittedly charitable in nature. Mere selling some product at a profit will not ipso facto hit assessee by applying proviso to Section 2(15) and deny exemption available under Section 11. HELD THAT - In the light of the decision in the case of Ahmedabad Urban Development Authority 2022 (10) TMI 948 - SUPREME COURT and as corrected by the order 2022 (11) TMI 255 - SUPREME COURT the present Special Leave Petition stands disposed of in terms of the said decision. Pending application also stands disposed of.

Summary

The Supreme Court of India, presided by Hon'ble Mr. Justice Abhay S. Oka and Hon'ble Mr. Justice Sanjay Karol, issued an order in a case where the petitioner was represented by Mr. N Venkatraman, A.S.G., and others, while the respondent had no representation. The Court condoned the delay in proceedings. The Special Leave Petition was disposed of based on the precedent set in "Asstt. Commissioner of Income Tax (Exemption) v. Ahmedabad Urban Development Authority," cited as (2023) 4 SCC 561, and further clarified by an order dated 3rd November 2022 in MA No.1849 of 2022 in Civil Appeal No.21762 of 2017, reported in 2022 SCC OnLine SC 1510. All pending applications were also disposed of in accordance with this decision.