IT : Where assessee's primary purpose remained advancement of objects of general public utility, even if an incidental or ancillary activity for purpose of achieving main purpose was profitable in nature, denial of registration was unjustified
■■■
[2015] 61 taxmann.com 59 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
IP India Foundation
v.
Director of Income-tax (Exemptions)*
P.M. JAGTAP, ACCOUNTANT MEMBER
AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER
IT APPEAL NO. 739 (HYD.) OF 2014
JANUARY 30, 2015
Section 12A, read with section 2(15), of the Income-tax Act, 1961 - Charitable trust - Registration of (Business practices) - Assessee-trust filed an application for registration under section 12AA - Director of Income-tax (Exemption) rejected said claim by holding that assessee intended to engage business practices for purpose of economic growth, which did not come under purview of charitable purposes - It was observed that main object of assessee was to focus on area of education and environment, watershed management, women empowerment through skill development initiatives, provision of drinking water, youth empowerment, medical health camps, environmental conservation program, and promotion of sports and a host of extracurricular activities at local levels aimed towards community sustainability - Whether since assessee's primary purpose was advancement of objects of general public utility and it would remain charitable even after an incidental or ancillary activity for purpose of achieving main purpose was profitable in nature, order of Director of Income-tax (Exemptions) was not correct - Held, yes [Paras 7 and 8] [In favour of assessee]
■■■
[2015] 61 taxmann.com 59 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
IP India Foundation
v.
Director of Income-tax (Exemptions)*
P.M. JAGTAP, ACCOUNTANT MEMBER
AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER
IT APPEAL NO. 739 (HYD.) OF 2014
JANUARY 30, 2015
Section 12A, read with section 2(15), of the Income-tax Act, 1961 - Charitable trust - Registration of (Business practices) - Assessee-trust filed an application for registration under section 12AA - Director of Income-tax (Exemption) rejected said claim by holding that assessee intended to engage business practices for purpose of economic growth, which did not come under purview of charitable purposes - It was observed that main object of assessee was to focus on area of education and environment, watershed management, women empowerment through skill development initiatives, provision of drinking water, youth empowerment, medical health camps, environmental conservation program, and promotion of sports and a host of extracurricular activities at local levels aimed towards community sustainability - Whether since assessee's primary purpose was advancement of objects of general public utility and it would remain charitable even after an incidental or ancillary activity for purpose of achieving main purpose was profitable in nature, order of Director of Income-tax (Exemptions) was not correct - Held, yes [Paras 7 and 8] [In favour of assessee]
No comments:
Post a Comment