TaxTMI 
TaxTMI 
2017 (8) TMI 1631
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....entical in nature, the same are taken together for disposal by this common order. 2. The assessee's main ground of appeal is in relation to denial of exemption under section 11 of the Act. Brief facts of the case are that the assessee has filed its return of income at Nil for assessment year 2010-11 in the status of charitable trust. However, the Assessing Officer (hereinafter referred to as the AO) had completed the assessment at total income of Rs. 1,11,18,546/- vide order dated 11.3.2013 under section 143(3)(ii) of the I.T. Act, 1961. The assessee was registered under section 12A of the I.T. Act, 1961 vide Registration No.25048 dated 24.04.1989. However, it was withdrawn by DIT (E), Mumbai vide his order dated 08.12.2011. Subsequently,....
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....o was introduced with effect from I" April, 2009, the scope and ambit of the said proviso to section 2(15) of the Act has to be examined and considered. Earlier orders under section 10(23C)(iv) are not relevant and are inconsequential, as they have not examined the scope and ambit of the first proviso. The proviso applies only if an institution is engaged in advancement of any other object of general public utility and postulates that such an institute is not "charitable" if it is involved in 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. The second part, "any activity of rendering any service in relation to any trade, commerce or....
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....r the proviso and the bar/prohibition will apply. 14. The most material and relevant words in the proviso are 'trade, business or commerce ". The activities which are undertaken by the an activity of rendering any service in relation to any trade, commerce or business. " Thereafter the Hon'ble High Court referred and analyzed the meaning of trade, business, commerce which have been elaborated by the Constitutional Bench of Hon'ble Supreme Court in the case of Addl. CIT vs. Surat Art and Silk Manufacturers Association 121 ITR 1, and other Supreme Court decisions; Sole Trustee Loka Shikshan Trust 101. ITR 234, State of Punjab vs. Bajaj Electrical Ltd. (1968) 2 see 536, Khodey Distillary Ltd. vs. State of Kerala (1975) 1 see ....
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....axability under Sales-tax, Excise Duty, Value Added Tax, etc. because these are not taxes on income but the taxable even occurs because of the "economic activity" involved. Even if a person/an organization is carrying on trading on the principle of "no loss no profit ", it may be liable to pay taxes or comply with the statute when the charge and incidence of tax, is on the economic activity". This concept is today well recognized in European Union and England [see Riverside Housing Association Ltd. vs. Revenue Customs Commr. (2006) EWHC 2383 (Ch and the case law cited therein). It may also be also appropriate here to refer the decision of the House of Lords in town Investments ltd. & Ors. Vs. Department of the Environment (1977) 1 All ER 81....
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....d material to show that the activity has continued on sound and recognized business principles, and pursued with reasonable continuity. There should be facts and other circumstances which justify and show that the activity undertaken is in fact in the nature of business. The test as prescribe in Raipur Mfrs. Co. 's case (supra) and Sai Publications Fund's case (supra) can be applied. The six indicia stipulated in Lord Fish; Each case, therefore, has to be examined on its own facts. If the principle and ratio laid down by the Hon'ble High Court is applied in the instant case, it would be seen that none of its receipts can be said to be arising or accruing from the activities which can be said to be for the purpose of business ....