https://www.taxtmi.com/caselaws?id=762273 ITAT Ahmedabad allowed the trust's appeal against denial of registration under Section 12AB. The trust conducted a fund-raising program "Adbhut Hungama" selling donation coupons for Rs. 500 each with prizes ranging from cars to tea mugs. The CIT(E) denied registration treating this as business activity violating Section 12AB(4). However, ITAT held the one-time fund-raising program was not organized business activity, as surplus was used for charitable purposes including purchasing dialysis machines, CT scan equipment, and establishing blood banks. Following Gujarat HC precedent in United Way of Baroda case, ITAT ruled such activities don't constitute trade/commerce/business when undertaken for charitable objectives without profit motive. en-us Tue, 26 Nov 2024 00:00:00 +0530 Wed, 27 Nov 2024 14:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762273 ITAT Ahmedabad allowed the trust's appeal against denial of registration under Section 12AB. The trust conducted a fund-raising program "Adbhut Hungama" selling donation coupons for Rs. 500 each with prizes ranging from cars to tea mugs. The CIT(E) denied registration treating this as business activity violating Section 12AB(4). However, ITAT held the one-time fund-raising program was not organized business activity, as surplus was used for charitable purposes including purchasing dialysis machines, CT scan equipment, and establishing blood banks. Following Gujarat HC precedent in United Way of Baroda case, ITAT ruled such activities don't constitute trade/commerce/business when undertaken for charitable objectives without profit motive. Case-Laws Income Tax Tue, 26 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762273