Appeal allows marketing payments as deductible business expenses under Sec.37; director pay retained; R&D deductible from certificate date under Sec.3...
Registration under s.12AB upheld; CIT(Exemptions) exceeded jurisdiction by deciding taxability instead of preliminary verification and registration di...
ITAT allowed the appeal of the assessee and quashed the revisionary order passed under s.263, holding the claim of exemption under ss.11/12 sustainable. The Tribunal held the assessee's activities fall within "advancement of any other objects of general public utility" under s.2(15) and noted s.12AA registration remains in force. A Coordinate Bench decision in the assessee's own case was binding and not stayed; hence the ITO was bound to follow it. Applying the Supreme Court's interpretation of the proviso to s.2(15), the Tribunal found no trade/business or rendering-of-service nexus and receipts did not breach the 20% threshold. Invocation of Explanation 2 to s.263 was held unjustified.
ITAT allowed the appeal of the assessee and quashed the revisionary order passed under s.263, holding the claim of exemption under ss.11/12 sustainable. The Tribunal held the assessee's activities fall within "advancement of any other objects of general public utility" under s.2(15) and noted s.12AA registration remains in force. A Coordinate Bench decision in the assessee's own case was binding and not stayed; hence the ITO was bound to follow it. Applying the Supreme Court's interpretation of the proviso to s.2(15), the Tribunal found no trade/business or rendering-of-service nexus and receipts did not breach the 20% threshold. Invocation of Explanation 2 to s.263 was held unjustified.
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