TaxTMI 
TaxTMI 
2013 (10) TMI 1361
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....e assessee, Young Women's Christian Association (YWCA), is a society registered under the provisions of Societies Registration Act, 1860. The assessee is having registration under Section 12AA of the Income-tax Act, 1961. By that way, the assessee is a charitable institution. 3. Major part of the income of the assessee arises out of interest on deposits, subscriptions and donations. Equally dominant part of income is from running of a Working Women's Hostel (WWH) and an International Guest House (IGH) in Madras. 4. On the activity side, the assessee is spending its revenue on different programmes in helping out differently abled people in the society. The assessee is running destitute homes, orphanages and facilities for handicapp....
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....as an institution "carrying on advancement of any other object of general public utility" and therefore, income arising out of the carrying on of business of WWH and IGH would not be entitled for exemption under Section 11. Accordingly, he excluded that part of income arising out of IGH and WWH from the relief pack available under Section 11. He granted relief to the remaining income. This assessment order has been confirmed in first appeal. Therefore, the second appeal was filed by the assessee before us. 8. The detailed grounds raised by the assessee in the present appeal read as below:- "2. The CIT(A) erred in treating the activities of the appellant as non charitable, and assessing the same as AOP, falling to ....
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....p; 6 The CIT(A) should have realized that the non-revenue generating activities of the appellant uphold the spirit and substance of the objectives framed in its Articles of Association, and have continued for over a century. 7. The CIT(A), has, arbitrarily and selectively, considered isolated activities of the appellant, such as typing institute, or tailoring classes, without viewing these activities in the larger context of the fact that these activities provided relief to poor, destitute women; or paying attention to any of the other activities pertaining to education, relief of the poor, and medical relief. 8. The CIT(A) has not considered the plea of the appellant, th....
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....e, commerce or business, will not apply to the activities carried on by the assessee. The said restriction is applicable only to that activity which falls under the "advancement of any other object of general public utility". She, therefore, explained that running of the business of WWH and IGH will not fetter the claim of the assessee for relief under Section 11. The assessee's case should be hit by the proviso only if the assessee is carrying on "the activities of advancement of any other object of general public utility". The activities carried on by the assessee are not "advancement of any other object of general public utility"; the activities are specific activities covering relief of the poor, education and medical relief. She th....
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....ublic utility". When that is the case, the assessee is hit by the proviso given under Section 2(15). The proviso reads that "advancement of any other object of general public utility" shall not be a charitable purpose, if it involves carrying on any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business for consideration, irrespective of the application of the money. Therefore, we find that the case of the assessee is hit by proviso to Section 2(15) and the assessee is not entitled for the benefit of Section 11 for that part of income generated in the hands of the assessee from running its International Guest House and Working Women's Hostel. 13. Al....