Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
The ITAT held that the proviso to section 2(15) applies only when an advancing general public utility carries on trade, commerce or business activity, to be assessed on the overall factual matrix by the dominant purpose test. Here, the Assessing Officer relied mainly on the nature and quantum of receipts without examining the trust objects or application of income. Rental income from property held under trust and interest from permitted investments was treated as incidental, not independent business income. As the activities were genuine, in furtherance of trust objects, and most income was applied to those objects, the proviso was not attracted and exemption under section 11 was allowed; consequential additions and disallowances were deleted.
The ITAT held that the proviso to section 2(15) applies only when an advancing general public utility carries on trade, commerce or business activity, to be assessed on the overall factual matrix by the dominant purpose test. Here, the Assessing Officer relied mainly on the nature and quantum of receipts without examining the trust objects or application of income. Rental income from property held under trust and interest from permitted investments was treated as incidental, not independent business income. As the activities were genuine, in furtherance of trust objects, and most income was applied to those objects, the proviso was not attracted and exemption under section 11 was allowed; consequential additions and disallowances were deleted.
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