2018 (2) TMI 1875

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.... 2. Briefly stated, the facts of the case are that the assessee had received Corpus Contribution from Government of India of Rs. 200,00,00,000/- and Corpus Contribution from SIDBI of Rs. 50,00,00,000/- which was not offered for tax. The Assessing Officer (AO) concluded that: (i) the provision of section 2(24)(iia) are applicable to the receipts of Rs. 250,00,00,000/- which amount have not been shown as income in return of income, (ii) the assessee has not claimed exemption u/s 11 in the original return of income. In view of the above, the AO brought to tax Rs. 250,00,00,000/- u/s 2(24)(iia) of the Act. 3. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that the Ld. CIT(A) followed th....

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.... out by the assessee Trust would be crucial to determine the applicability of the proviso to section 2(15) of the Act; may it be to examine whether its activities are in the nature of trade, commerce or business or whether it is rendering any service in relation to any trade, commerce or business, as prescribed in the proviso to section 2(15) of the Act. 5.11 In this background, now we may go back to the facts of the present case. In the instant case, the object and purpose of the assessee Trust is toenable the small scale industries and micro enterprises to pursue their income generation activities. The said object is sought to be achieved by providing guarantees or counter guarantees to the lending institutions who disburse loans....

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....in the proviso to section 2(15) of the Act. In fact, as we had noted earlier, the assessee Trust has been settled on 27/07/2000 by the Government of India and SIDBI. The trust deed brings out the objects and purpose for which the assessee Trust has been set up, namely, to mitigate the difficulties faced by the small scale industries and micro enterprises in availing credit facilities from various lending institutions. It is also to be noted that the object and purpose of the Trust is focussed on small scale industries and micro enterprises and is not available to entrepreneurs at large. Apart there-from, it is also prescribed in the scheme operationalized by the Trust that the benefits are to be made available only to credit facilities aggr....