2022 (7) TMI 903

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.... for the Appellant states that the ITAT has erred in not appreciating the fact that the activities of rendering services etc. by the respondent are in the nature of trade commerce or business which are not charitable in nature and therefore hit by proviso to section 2(15) of the Income Tax Act 1961 ('the Act'). 3. He also states that the ITAT has erred in directing the Assessing Officer to allow the exemption under Section 11 of the Act without appreciating the fact that the Assessee cannot be treated to be engaged in charitable activities. 4. A perusal of the paper book reveals that the assessee is engaged in activities for upliftment of the poor, providing training and skill development of the poor in the rural areas in the backward....

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....further holds that it is quite normal that a donor would want to verify whether the grants have been incurred for the intended purpose which in our opinion, in any manner does not establish that the activities of the assessee is business activity. 7. The ITAT further observed that in the assessment years 2009-10 and 2010-11, the assessing officer has held the assessee is engaged in providing relief to poor within the meaning of Section 2(15) of the Act. The assessee has claimed that its activity during the year under consideration has remained same and there is no change as compared to assessment years 2009-10 and 2010-11. The ITAT following the rule of consistency dismissed the appeal of the Revenue. 8. This Court in the case of Inst....

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....the mischief of Proviso to Section 2(15) of the Act is not attracted. 7. In any event, the assessee/society is charitable in nature as the profit, if any, made by the assessee/society is being ploughed back for charitable activities. Further, the appellant itself has granted the assessee registration under Section 12A, recognition under Section 10(23C)(vi) and Exemption under Section 80G of the Act. 8. Consequently, this Court is in agreement with the findings of the CIT(A) and ITAT that the assessee/society does not carry on any business, trade or commerce with the intent of earning and distributing profit. 9. The Supreme Court in the case of Ram Kumar Aggarwal & Anr. vs. Thawar Das (through LRs), (1999) 7 SCC 30....