https://www.taxtmi.com/caselaws?id=769435 The ITAT Chennai upheld CIT(A)'s decision granting exemption u/s 11 to a public charitable trust registered u/s 12AA. Revenue argued that trust's sale of devotional articles at markup constituted business activity, disqualifying religious purpose exemption. ITAT found trust's primary income came from donations and interest, with sale activities being incidental. Following SC precedent in ACIT vs. Ahmedabad Urban Development Authority, activities carried out at nominal cost don't automatically constitute business. AO's high markup observation was deemed fallacious as administrative expenses weren't considered. Revenue appeal dismissed. en-us Wed, 22 Jan 2025 00:00:00 +0530 Fri, 25 Apr 2025 08:53:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769435 The ITAT Chennai upheld CIT(A)'s decision granting exemption u/s 11 to a public charitable trust registered u/s 12AA. Revenue argued that trust's sale of devotional articles at markup constituted business activity, disqualifying religious purpose exemption. ITAT found trust's primary income came from donations and interest, with sale activities being incidental. Following SC precedent in ACIT vs. Ahmedabad Urban Development Authority, activities carried out at nominal cost don't automatically constitute business. AO's high markup observation was deemed fallacious as administrative expenses weren't considered. Revenue appeal dismissed. Case-Laws Income Tax Wed, 22 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769435