Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Income Tax - Highlights / Catch Notes

Home Highlights November 2024 Year 2024 This

The assessee society's activities were initially considered ...


Society promoting hydrocarbon industry's interests ruled non-commercial.

Case Laws     Income Tax

November 14, 2024

The assessee society's activities were initially considered commercial by the Commissioner of Income Tax (CIT) under the second proviso to Section 2(15) of the Income Tax Act. However, the Income Tax Appellate Tribunal (ITAT) held that the society's primary objective was to secure and promote the business interests of its members, which does not necessarily imply a commercial nature. The ITAT observed that the society was formed as an initiative of the Government of India to bring stakeholders together, ultimately benefiting consumers. Despite including private sector members, the society's role as a facilitator for the hydrocarbon industry does not make its activities commercial. The expenditure statements did not indicate any funds utilized for procuring business for members or promoting their financial interests. The ITAT concluded that the Revisional Authority's order lacked legal basis and was based on conjectures beyond the scope of Section 263, ruling in favor of the assessee.

View Source

 


 

You may also like:

  1. External Commercial Borrowings (ECB) Policy – ECB by Small Industries Development Bank of India (SIDBI) - Circular

  2. Deduction u/s 80P(2)(a) is allowed for a cooperative society earning interest and dividend income from deposits with a Delhi State Cooperative Bank registered under the...

  3. Commercial or Industrial Construction Service - services provided to Educational Society, which is non-commercial organization - the Service Tax demand cannot be...

  4. Interest income earned by a co-operative society formed and managed by the Government, in its regular course of operations, forms part of revenue attributable to...

  5. Allowability of deduction u/s 80P(2)(d) for interest income from deposits/investments in a cooperative bank by a cooperative society. The assessee, a cooperative society...

  6. Co-operative Housing Society declared income from maintenance charges under 'Income from other sources' with deficit of Rs. 13,86,671/-. Rental and interest income also...

  7. Deduction of claim u/s. 80P(2)(a)(i) - claim denied on interest - The Assessee being a Primary Agriculture Credit Society is a Co-operative Society. The primary object...

  8. Addition of interest on interest free loans advanced by assessee Company to sister concerns/related parties disallowed. Onus on assessee to prove commercial expediency...

  9. Denial of deduction claimed u/s 80P (2)(d) - AO disallowed the benefit by invoking the provision of section 154 for rectification of mistake change of opinion - interest...

  10. Revision u/s 263 - Deduction u/s 80P(2)(a)(i) - interest income was received by the assessee on deposits - section 80P(2)(d) of the Act specifically exempts interest...

  11. Concept of mutuality - Payment of interest / compensation to the members - The very fact that bylaws of the assessee-society contained the provisions that payment of...

  12. Deduction u/s 80P - deduction of income earned as interest/dividend from co-operative bank is allowable. Section 80P(2)(d) reflects that if income by way of interest or...

  13. Unexplained investment in land purchase - society's purchase in its name or trustees' names - CIT(A) considered money not paid by society from income but sourced from...

  14. Refund of Service Tax paid on construction activity - commercial construction or not - there is no doubt that building constructed by the Contractor is medical college...

  15. Commercial coaching or training centre services - assessee were registered under the Societies Act, 1860 - appellant is covered under the commercial coaching and...

 

Quick Updates:Latest Updates