2025 (1) TMI 1506 - 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. Learned counsel invites our attention to the order passed in M/s. Ghaziabad Development Authority Vikas Path 2023 (7) TMI 1551 - SC ORDER wherein 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. As such as jointly prayed for the present special leave petitions are disposed of in terms of the order extracted supra. 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)? - It is not in dispute that the issue in question stands squarely covered and the similar petition preferred by the petitioner stands dismissed in terms of order passed by the Coordinate Bench of this Court M/s. Ghaziabad Development Authority Vikas Path 2022 (11) TMI 255 - SUPREME COURT - Ordered accordingly.

Summary

The Supreme Court, presided over by Justices Sanjay Karol and Prashant Kumar Mishra, addressed multiple Special Leave Petitions (SLPs) related to a decision by the Allahabad High Court. The petitions, including SLP (C) Nos. 5611/2023, 5612/2023, 9631/2023, and 7472/2023, were influenced by a prior ruling in the case of "Commissioner of Income Tax (Exemptions) & Anr. Vs. M/s. Ghaziabad Development Authority Vikas Path." The Court referenced a decision in "Asstt. Commissioner of Income Tax (Exemption) V. Ahmedabad Urban Development Authority," reported in (2023) 4 SCC 561, which was pivotal in disposing of the current petitions. The Court noted that the issues in these petitions were "squarely covered" by this precedent. Consequently, the petitions were dismissed in accordance with the earlier decision, and any pending applications were also disposed of. The Court's order emphasized the application of established legal principles to resolve the matter efficiently.