Section 2(15) of the Income-tax Act, 1961—Charitable purpose— Assessee entitled to exemption under section 11 as activities carried out by assessee were not in nature of trade, commerce or business so as to attract proviso to section 2(15) and same could be said to be for charitable purpose.

Facts: Being aggrieved of order of CIT(A), assessee went on appeal before Tribunal and raised the ground that AO as well as CIT(A) have erred in holding that assessee is not entitled to benefit of sections 11 & 12 and AO as well as CIT(A) have erred in holding that first & second proviso to section 2(15) is applicable in the assessee's case.

Held, that Court placed reliance on a case, facts of which were that assessee corporation was constituted under Gujarat Industrial Development Act, 1962, for purpose of securing and assisting rapid and orderly establishment and organization of industrial areas and Industrial estates in State of Gujarat, and for purpose of establishing commercial centers in connection with establishment and organization of such industries it could not be said that activities carried out by assessee were either in nature of trade, commerce or business, for a Cess or Fee or any other consideration so as to attract proviso to section 2(15) and same could be said to be for charitable purpose and, consequently,assessee was entitled to exemption under section 11. It was found that the object of assessee is similar to that of the corporation before the Jurisdictional High Court and on the similar set of facts the appeal was allowed in favour of the assessee hence relying upon the same we allow the claim of the assessee and the disallowance of exemption as claimed by the assessee u/s 11 is hereby quashed and addition made thereon is thus deleted. - SURAT URBAN DEVELOPMENT AUTHORITY (SUDA) V/s DY. CIT - [2020] 182 ITD 020 (ITAT-AHMEDABAD)