9911796707
TMI Blog2024 (7) TMI 1497X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to improve development of roads, establishment of dispensaries, water supply sanitation and other public facilities, conversion of notified market areas falling in rural areas by utilizing technical know-how, construction of godowns and storage places for agricultural produce, construction of rest houses for the visitors in the market area. The Board earnings are the fee prescribed under the Haryana Rural Development Act, 1986 to be made as a per centum of the sale proceeds of the agricultural produce. It has, on the said basis, reached to the conclusion that the said Board is carrying out activities of general public utility in terms of the new definition of Section 2 (20) of the Act. Upon reaching the factual findings as above, it proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el appearing for the respondent-Board supports the impugned order passed by the ITAT and submits that the ITAT has considered all the aspects and the two essential requirements for grant of Registration under Section 12-AA of the Act. 4. We have considered the submissions of learned counsel for both the parties. 5. Section 2 (15) of the Act defines charitable purpose and the essential feature that the concerned organization must be carrying out the activities for general public utility. It is only such society, Court or a statutory authority which could be entitled for Registration under Section 12-AA of the Act. 6. The larger Bench of the apex Court, after having considered the entire law, has summed up its conclusions with regard to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as amended over the years (Rs. 10 lakhs w.e.f. 01.04.2009; then Rs. 25 lakhs w.e.f. 01.04.2012; and now 20% of total receipts of the previous year, w.e.f. 01.04.2016); A.3 XXX A.4 Section 11(4A) must be interpreted harmoniously with Section 2 (15), with which 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 brea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have to comply with the quantified limit (as amended from time to time) in the proviso to Section 2 (15) of the IT Act. B.3. In clause (b) of Section 10(46) of the IT Act, commercial has the same meaning as trade, commerce, business in Section 2 (15) of the IT Act. Therefore, sums charged by such notified body, authority, Board, Trust or Commission (by whatever name called) will require similar consideration i.e., whether it is at cost with a nominal mark-up or significantly higher, to determine if it falls within the mischief of commercial activity . However, in the case of such notified bodies, there is no quantified limit in Section 10 (46). Therefore, the Central Government would have to decide on a case-by-case basis whether and to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Haryana Rural Development Act, 1986 to be made as a per centum of the sale proceeds of the agricultural produce. 10. It has, on the said basis, reached to the conclusion that the said Board is carrying out activities of general public utility in terms of the new definition of Section 2 (20) of the Act. Upon reaching the factual findings as above, it proceeded to observe that the Commissioner was not justified in denying the Registration to the assessee. 11. We do not find any error in the judgment passed by the ITAT. No substantial question of law can be said to be made out keeping in view the observations of the Supreme Court (Supra). We do not find any reason to interfere with the judgment and order dated 28.02.2008 passed by the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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