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TMI Blog2023 (2) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... on [ 2015 (1) TMI 928 - DELHI HIGH COURT ] However, the law with regard to interpretation of Section 2 (15) has undergone a change, due to the decision in Ahmedabad Urban Development Authority [ 2022 (10) TMI 948 - SUPREME COURT ] As a result, this court is of the opinion, that matter should be remitted for fresh consideration of the nature of receipts in the hands of the assessee, in the present case. As a result, the matter requires to be re-examined, and the question as to whether the amounts received by the assessee qualify for exemption, under Section 2 (15) or Section 11 needs to be gone into afresh. The revenue s appeal succeeds in part. AO shall examine the documents and relevant papers and render fresh findings on the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment upheld the decision of the Income Tax Appellate Tribunal ( ITAT ) which affirmed the views expressed by the Commissioner of Income Tax (Appeals) (hereafter called Appellate Commissioner ). The Appellate Commissioner and the ITAT were of the opinion that the respondent organisation (a registered society, hereafter also called the assessee ) was a charitable trust entitled to the benefit of exemption and that it is registered under Section 12AA and 80G of the Income Tax Act (hereafter called the Act ) were valid. 3. The facts are that the assessee society was founded in the year 1921 by the legendary freedom fighter Lala Lajpat Rai during the freedom struggle for the nation building, general awareness and welfare of the people. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue carried the matter in appeal to the ITAT and the High Court, both unsuccessfully. As a consequence, it has approached this Court in appeal by the special leave. 5. It is urged on behalf of the revenue that the Appellate Commissioner and the Tribunal fell into error in granting the exemption to the assessee. The Learned Additional Solicitor General Mr. Balbir Singh, points out that the ITAT followed the decision of the Delhi High Court in India Trade Promotion Organisation v. Director General of Income Tax (Exemption) [371 ITR (Del) 333] and other decisions. It was urged that those decisions are no longer good law in view of the judgment of this Court in CIT v. Ahmedabad Urban Development Authority [2022 SCC Online SC 1461], ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the true interpretation of charitable objects under Section 2 (15) and summarized the findings as follows: IV. Summation of conclusions 267. In view of the foregoing discussion and analysis, the following conclusions are recorded regarding the interpretation of the changed definition of charitable purpose (w.e.f. 01.04.2009), as well as the later amendments, and other related provisions of the IT Act. A. General test under Section 2(15) A.1. It is clarified that an assessee advancing general public utility cannot engage itself in any trade, commerce or business, or provide service in relation thereto for any consideration ( cess, or fee, or any other consideration ); A.2. However, in the course of achieving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no conflict. Carrying out activity in the nature of trade, commerce or business, or service in relation to such activities, should be conducted in the course of achieving the GPU object, and the income, profit or surplus or gains must, therefore, be incidental. The requirement in Section 11(4A) of maintaining separate books of account is also in line with the necessity of demonstrating that the quantitative limit prescribed in the proviso to Section 2(15), has not been breached. Similarly, the insertion of Section 13(8), seventeenth proviso to Section 10(23C) and third proviso to Section 143(3) (all w.r.e.f. 01.04.2009), reaffirm this interpretation and bring uniformity across the statutory provisions. 10. This court had also c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, publication of advertisement is intrinsically connected with the activity of printing and publishing of newspapers. 259. The publication of advertisements for consideration, in the opinion of the court, by the newspaper, cannot but be termed as an activity in the nature of carrying on business, trade or commerce for a fee or consideration. That the newspaper published by the trust ( the Tribune ) in this case is funded mainly through advertisement is no basis for holding that publishing such advertisements by the Trust does not constitute business. The object of the trust to involve or engage in publication of newspapers. Publishing advertisements is obviously to garner receipts which are in the nature of profit. Now, by virtue of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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