2021 (3) TMI 772

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....se. 2. The learned Commissioner of Income Tax ought not to have applied first proviso to section 2(15) of the Income Tax Act, 1961 in case of the appellant. 3. The learned Commissioner of Income Tax erred in considering the interest received from bank deposit as `Commercial or Business Income' and not allowing exemption under section 11 of the Income Tax Act, 1961." 3. The brief facts of the case are as follow: The assessee is a charitable society having registration under 12AA of the I.T.Act. For the assessment year 2013-2014, the return of income was filed on 28.03.2014 declaring `Nil' income, after claiming exemption u/s 11 of the I.T.Act. The assessment was taken up for scrutiny by issuance of notice u/s 143(2) o....

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....fit motive. Therefore, it was contended that in absence of intention of profit the first proviso to section 2(15) of the I.T.Act does not apply. In this context, the assessee relied on various case laws, which are extracted at para 4 of the impugned order of the CIT(A). The CIT(A) rejected the contention of the assessee by referring to section 2(15) of the I.T.Act and the Board Circular No.11 of 2008 dated 19.12.2008. The CIT(A) concluded that from the clarification issued by the CBDT Circular, it is clear that the assessee is not entitled to the claim of exemption of its income on the ground that it does not fall under the proviso to section 2(15) of the I.T.Act. 5. Aggrieved by the order of the CIT(A), the assessee has filed this appea....