Trust held charitable; proviso to s.2(15) not automatic for occasional profit sales; AO failed on s.11; registration denial overturned. HC held the trust's aims and objects are charitable and the proviso to section 2(15) does not automatically apply because occasional profit-making sales ...
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Trust held charitable; proviso to s.2(15) not automatic for occasional profit sales; AO failed on s.11; registration denial overturned.
HC held the trust's aims and objects are charitable and the proviso to section 2(15) does not automatically apply because occasional profit-making sales do not negate charitable status. The AO failed to show defective computation under s.11 or that activities were not charitable; trustees' intention and manner of conduct were relevant and the activities were genuine. Denial of registration/exemption based on alleged commercial transactions was not sustained. Appeal dismissed.
Vakalatnama filed on behalf of Bulandshahar Development Authority taken on record. After hearing the appellant at length, the Court held the controversy "squarely covered by the decision of this Court in Commissioner of Income Tax vs. Lucknow Development Authority (2014) 98 DTR (All) 193 decided on 16.9.2013." In view of that precedent, the appeal fails and is dismissed. No counsel appeared for the respondent.
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