2011 (9) TMI 1061

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....eals) erred in directing the AO to allow exemption u/s.11 of the IT Act, 1961 ignoring the elaborate discussion of the issues and facts and circumstances of the case by the AO." 2. Briefly stated the facts are as under. The assessee is a local authority created by the Govt. of Maharashtra by enacting SRA Act, 1971. The assessee filed the return of income for the A.Y. 2007-08 on 30.10.2007 declaring 'nil' total income. The return of income was selected for scrutiny and assessment was completed u/s.143(3) of the Act determining taxable income of the assessee at Rs. 36,96,48,303/-. 3. The facts pertaining to the issue in controversy are as under. The assessee has claimed exemption u/s.11 of the I.T. Act. Upto assessment year 2002-03, as ....

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....hallenged the assessment order before the Ld. CIT (A) and the Ld. CIT (A) following the decision of the Hon'ble Supreme Court in the case of CIT vs. Gujarat Maritime Boards 295 ITR 561 as well ACIT vs. Surat City Gymkhana 300 ITR 214 allowed the appeals of the assessee. Now, the revenue is in appeal before us. 4. We have heard the rival submissions of the parties, perused the records and gone through the case laws relied on by the parties. We find that, in the preceding years, when the revenue's appeals were dismissed for want of the COD approval. So far as merits of the case is concerned, in our opinion, the principles laid down by the Hon'ble Supreme Court in the case of Gujarat Maritime Boards (supra) are squarely applicable to the as....

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....ction of the public as distinguished from benefit to an individual or a group of individuals would be a charitable purpose-CIT v. Ahmedabad Rana Caste Association [1983] 140 ITR 1 (SC). The said expression would prima facie include all objects which promote the welfare of the general public. It cannot be said that a purpose would cease to be charitable even if public welfare is intended to be served. If the primary purpose and the predominant object are to promote the welfare of the general public the purpose would be charitable purpose. When an object is to promote or protect the interest of a particular trade or industry that object becomes an object of public utility, but not so, if it seeks to promote the interest of those who conduct t....