Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
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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