9911796707
TMI Blog2024 (8) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... achieving what are essentially public functions/services (such as housing, industrial development, supply of water, sewage management, supply of food grain, development and town planning, etc.) may resemble trade, commercial, or business activities. However, since their objects are essential for advancement of public purposes/functions (and/are accordingly restrained by way of statutory provisions), such receipts are prima-facie to be excluded from the mischief of business or commercial receipts. As in every case the Assessing Authorities would have to apply their mind and scrutinize the record, to determine if, and to what extent, the consideration or amounts charged are significantly higher than the cost and the nominal mark-up. If such i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the appeal, the following substantial questions of law were formulated : - i) Whether on the facts and circumstances of the case and in law the Hon ble ITAT has erred in law in allowing the exemption u/s 11 of the Act by holding that the activities of the assessee are charitable in nature even though the amended provision of section 13(8) r.w. 1st and 2nd proviso of section 2(15) are attracted? ii) Whether on the facts and in circumstances of the case and in law the Hon ble ITAT has erred in law in allowing the benefits of set apart u/s 11(2) of the Act, deleting the additions of Rs. 79,76,39,913/- as unspent amount in spite of the fact that the provision of section 11(2) r.w.s. 11(3) (c) are attracted as assessee is not granted exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Authorities would have to apply their mind and scrutinize the record, to determine if, and to what extent, the consideration or amounts charged are significantly higher than the cost and the nominal mark-up. If such is the case, then the receipts would indicate that the activities are in fact in the nature of trade, commerce or business and as a result, would 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 as 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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