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TMI Blog2021 (1) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is a company with charitable object formed under section 26 of the Companies Act, 1956. The assessee has also been granted registration under section 12A of the Act by the Director of Income Tax (Exemp.), long back. For the assessment year under dispute, the assessee filed its return of income on 22nd August 2013, declaring deficit/loss of Rs. 28,92,292 after claiming exemption under section 11 of the Act. During the assessment proceedings, the Assessing Officer called upon the assessee to show cause as to why the assessee should not be treated as a mutual concern not having any charitable object and why proviso to section 2(15) of the Act should not apply to the assessee. Though, the assessee objected to the proposed disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble reason for denying assessee's claim of exemption under section 11 of the Act. He submitted, though, the assessee had been claiming exemption under section 11 of the Act from its very inception, however, prior to the impugned assessment year the Department has never disallowed such exemption. Thus, he submitted, the assessee should be allowed exemption under section 11 of the Act. In support, he relied upon the following decisions:- i) DIT v/s Gemological Institute of India, [2019] 105 taxmann.com 180 (SC); ii) ACIT v/s Surat City Gymkhana, [2008] 170 Taxman 612 (SC); iii) ITO v/s Chembur Gymkhana, [2017] 80 taxmann.com 354 (Mum.) (Trib.); iv) Confederation of Real Estate Developers Association of India v/s ACIT, [202-0] 119 taxm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be applicable in a case where the assessee is having the main object of 'advancement of any other object of general public utility', but, its activities are commercial in nature. In that eventuality, its object would not be regarded to be of charitable purpose. However, now it is fairly well settled that if the income derived from commercial activity is incidental to carrying out the objects, it will be regarded as charitable purpose. 8. Further, it is a fact on record that the assessee had been granted registration under section 12A of the Act long back and such registration continues till date. On a query, the learned Authorised Representative further stated that objects of the assessee have not changed. In case of DIT(E) Vs. Gemolo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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