https://www.taxtmi.com/caselaws?id=753959 The ITAT Jodhpur upheld CIT(A)'s decision granting exemption u/s 11 to a charitable trust. The AO had denied exemption claiming the trust's activities were commercial due to rental receipts exceeding Rs. 25 lakhs, treating it as AOP. The ITAT found the trust was registered u/s 12AA with charitable objects and no profit motive was established. Citing Supreme Court precedent in ACIT vs. Ahmedabad Urban Development Authority, the tribunal noted rental income below 20% of total receipts doesn't disqualify charitable status under section 2(15). The AO failed to prove commercial nature or that receipts exceeded the 20% threshold. The tribunal ruled against revenue, confirming the trust's entitlement to section 11-12 benefits. en-us Fri, 10 May 2024 00:00:00 +0530 Fri, 14 Jun 2024 07:38:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753959 The ITAT Jodhpur upheld CIT(A)'s decision granting exemption u/s 11 to a charitable trust. The AO had denied exemption claiming the trust's activities were commercial due to rental receipts exceeding Rs. 25 lakhs, treating it as AOP. The ITAT found the trust was registered u/s 12AA with charitable objects and no profit motive was established. Citing Supreme Court precedent in ACIT vs. Ahmedabad Urban Development Authority, the tribunal noted rental income below 20% of total receipts doesn't disqualify charitable status under section 2(15). The AO failed to prove commercial nature or that receipts exceeded the 20% threshold. The tribunal ruled against revenue, confirming the trust's entitlement to section 11-12 benefits. Case-Laws Income Tax Fri, 10 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753959