Section 2(15), 11, 12AA of Income Tax Act, 1961—Exemption u/s 11—In the instant case, appeal is preferred by revenue on the ground that activities of the assessee did not fall within the definition of preservation of environment as it was inserted in section 2(15) of the Act with effect from 01/04/2009. The Revenue has further contended that the activities carried on by assessee involved carrying on of business and trade and therefore, CIT(A) had wrongly allowed exemption u/s 11.

Held that— As regards the contention of Revenue that activities of the assessee do not fall within the definition of preservation of environment, we find that learned CIT(A), after relying on the decision of Hon'ble I.T.A.T., as upheld by Hon'ble Supreme Court, has held that the activities of the assessee are charitable in nature.

Next ground of appeal is that assessee was granted 12A registration for preservation, supervision and development of forest and not for the exploitation of forest produce.

Held that— We do not find any infirmity in the order of learned CIT(A) therefore, dismissed.

Next ground of appeal relates to deletion of addition which the Assessing Officer had made on account of prior period expenses.

Held that— The said expenses are allowed for the reason that these expenses were determined and crystallized only during the AY under consideration.

We dismiss all the appeals of the Revenue.[DY. C.I.T. (EXEMPTIONS) , LUCKNOW. VERSUS U.P. FOREST CORPORATION] [2018] 8 ITCD Online (33) [ ITAT LUCKNOW]