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In favour of assessee.The mere fact that certain fee was charged by the assessee while rendering certain services and surplus was generated, the said fact alone, would not disentitle the assessee to claim the impugned exemption u/s 11 & 12 considering the fact that the primary objects of the assessee were charitable in nature.

Shanti Prime Publication Pvt. Ltd.

Sec. 11 & 12 of Income Tax Act, 1961— Exemption - The assessee challenged the order of CIT in confirming the action of the AO in rejecting the appellant's claim for exemption under section 11 and section 12 of the Act on the ground that its activities were not charitable and on the ground that the first proviso to section 2(15) of the Act was applicable saying that the CIT(A) overlooked that the appellant was formed as a "Not for Profit Company" under section 25 of the Companies Act, 1956 and was prohibited by its object clause from carrying on any activity on commercial basis. ITAT allowed the appeal of the asessee holding that “the mere fact that certain fee was charged by the assessee while rendering certain services and surplus was generated, the said fact alone, would not disentitle the assessee to claim the impugned exemption u/s 11 & 12 considering the fact that the primary objects of the assessee were charitable in nature”. Accordingly ITAT directed the lower authorities to grant the exemption to the assessee u/s 11 & 12 of the Act. - NATIONAL PAYMENTS CORPORATION OF INDIA V/s DEPUTY CIT - [2020] 206 TTJ 681 (ITAT-MUMBAI)