https://www.taxtmi.com/caselaws?id=460510 ITAT Cochin denied exemption under section 11 to a company registered under section 8 of Companies Act, 2013 for charitable purposes. The assessee claimed its trading business benefited poor farmers through sourcing activities. The Tribunal held that merely employing people or sourcing goods/services cannot be regarded as charitable activity having specific legal meaning. The assessee failed to establish legal obligation or better value transfer to farmers on regular basis to demonstrate non-commercial nature. The trading business, constituting primary income source, was not proven to benefit the poor as claimed. Revenue's denial of exemption was upheld. en-us Fri, 24 Feb 2023 00:00:00 +0530 Wed, 29 Jan 2025 13:59:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460510 ITAT Cochin denied exemption under section 11 to a company registered under section 8 of Companies Act, 2013 for charitable purposes. The assessee claimed its trading business benefited poor farmers through sourcing activities. The Tribunal held that merely employing people or sourcing goods/services cannot be regarded as charitable activity having specific legal meaning. The assessee failed to establish legal obligation or better value transfer to farmers on regular basis to demonstrate non-commercial nature. The trading business, constituting primary income source, was not proven to benefit the poor as claimed. Revenue's denial of exemption was upheld. Case-Laws Income Tax Fri, 24 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460510