2020 (11) TMI 140

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... bull through technique of artificial insemination to get resulting better milk yielder exceeded the limit provided in proviso to section 2(15), ignoring the detailed discussion made in assessment order in Para 4. 2. Whether on the facts and circumstances of the case and in law, without prejudice to ground No. 1 , the Ld. CIT(A) is right in allowing the exemption u/s 11 of the IT. Act, in view of proviso to section 2(15) of the I.T. Act, when even, after ignoring the receipts of money /consideration being income from Livestock Development Centres received by the assesses for the activities carried out by it on the basis of proper contract/agreement entered into with the State /Central Government where everything has been, decided specifically in proper business/professional manner exceeding the limit provided in proviso to section 2(15) ignoring the detailed, discussion made in assessment order. 3. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is right in directing the AO to allow exemption u/s. 11 of the I.T. Act ignoring the fact that the assesses is doing regular activities of live stock Development Centre where activities of imp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing has been decided specifically in proper business/professional manner. Thus the AO held that the case of the assessee is hit by the amendment to section 2(15) of the Act w.e.f. 01.04.2009 and it loses its charitable character for the assessment year in question and therefore is not entitled to exemption u/s 11 in view of the provision of section 13(8) of the Act. Accordingly, the AO calculated the total income of the assessee as under :   Rs. Income from Other Sources 821228252 Less : Expenses   Amount applied to charitable purpose during previous year 708241507 Total Taxable Income 112986745 Rounded Off to 112986740 4. Aggrieved by the order of the, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 08.02.2019, the Ld. CIT(A), by following the decision in CIT v. Sri Balaji Samaj Vikas Samiti (91 taxmann.com 26) (Allahabad-High Court); DIT (Exemption) v. Sabarmati Ashram Gaushala Trust (44 taxmann.com 141) (Gujarat High Court) and the order of the Tribunal in assessee's own case for AY 2012-13 in ITA No. 3769/Mum/2017 held that the AO was not justified in holding that the activities of the assessee w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the Trust, which are as under:- "1. To breed the cattle and endeavour to improve the quality of the cows and oxen in view of the need of good oxen as India is prominent agricultural country and the cow milk as food is both conducive to and requisite for good health and longevity of human life. In order to improve the quality of the cattle, it is very essential to use a high quality bulls. Hence to produce and to get produced the best pedigreed bulls and to castrate the scrub bulls and propagate the work to prepare bullocks by castrating the bulls which do not become good bulls. 2. To produce and to sell the cow milk and its various preparations so as to popularize the use of cow milk and do all other works for the same. 3. To hold and cultivate or get cultivated agricultural lands, to keep grazing lands etc necessary or desirable for cattle keeping and breeding or to rehabilitate and assist Rabaris and Bharwads. 4. To hold and cultivate other land also in order to experiment in the improvement in agriculture and obtain finance support in all the activities of the institution. 5. To make necessary arrangements for getting informatics an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the cattle, agriculture, use of milk and its various preparations, etc.; to establish other allied institutions like leather work and to recognize and help them in order to make the cow keeping economically viable; to publish study materials, books, periodicals, monthlies etc., in order to publicize the objects of the trust as also to open schools and hostels for imparting education in cow keeping and agriculture having regard to the trust objects. 12. All these were the objects of the general public utility and would squarely fall under section 2 (15) of the Act. Profit making was neither the aim nor object of the Trust. It was not the principal activity. Merely because while carrying out the activities for the purpose of achieving the objects of the Trust, certain incidental surpluses were generated, would not render the activity in the nature of trade, commerce or business. As clarified by the CBDT in its Circular No. 11/2008 dated 19th December 2008 the proviso aims to attract those activities which are truly in the nature of trade, commerce or business but are carried out under the guise of activities in the nature of public utility'. 13. Delhi High Co....