2019 (4) TMI 377

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....ficer to delete the addition of interest holding that the income is exempt u/S. 11(5) and the proviso to Section 2(15) has no application to the facts of the case?"   3. Brief facts are as under:- 3.1 Respondent assessee is a Trust registered under Section 12A of the Income Tax Act, 1961 ("the Act" for short). The assessee filed return of income for the assessment year 2009-10. The Assessing Officer undertook scrutiny assessment of the return. He passed order under Section 143(3) of the Act on 30.12.2011 holding that the assessee's interest income of Rs. 2.17 Crores was not exempt from tax. He was of the opinion that by virtue of the inserted proviso to Section 2(15) of the Act, defining the term "charitable purpose", the assessee wo....

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....tration under Section 12A of the Act was reversed. The Tribunal was of the opinion that the assessee did not carry out any activity in the nature of commerce or business. The Tribunal, thus, overruled all three objections of the Assessing Officer and held that the interest income was exempt under Section 11 of the Act. 4. Having heard the learned counsel for the parties, we do not find any error in the view of the Tribunal. Section 2(15) of the Act defines term "charitable purpose" as to include activities such as relief of the poor, education, medical relief etc., and also "advancement of any other object of general public utility". Proviso to Section 2(15) of the Act provides that the advancement of any other object of general public uti....