TaxTMI 
TaxTMI 
2022 (8) TMI 1035
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....r passed U/s. 143(3) of the Income Tax Act, 1961 ["the Act"] for the AY 2013-14. 2. Brief facts of the case are that the assessee society is a charitable institution having registration U/s. 12A of the Act filed its return of income for the AY 2013-14 on 19/09/2013 declaring total income at Rs. NIL. For the AY 2013-14, the assessee claimed exemption U/s. 11 of the Act. The return was processed U/s. 143(1) of the Act and subsequently the case was selected for scrutiny under CASS and accordingly statutory notices U/s. 143(2) and 142(1) of the Act were served on the assessee. In response, the assessee"s representative made submissions as called for. In response to the notice U/s. 142(1) dated 2/12/2014, the assessee furnished a letter dated....
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....gs that the assessee is running a small scale industry as per such clause and is operating well within the registration granted U/s. 12AA by the CIT. The AR claimed that its operation are "relief to the poor" and not "General Public Utility". The Ld. AO also observed that there exists no charity and the assessee has not given any details of actual training imparted by the assessee-society along with supported documentary evidence. The Ld. AO also noted that merely providing employment in a business runn on profit in a back ward area cannot be taken as "relief to the poor" and "no substantiation was provided that the women employees and other employees who are employed on wages/salaries to fit within the spirit and meaning of relief to the p....
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....ad. 3. The Ld. CIT(A) ought to have considered the Circular No.11 of 2008 dated 19/12/2008 wherein departmental view of charitable purpose has been stated in the light of amendment to section 2(15) vide Finance Act, 2008. 4. The Ld. CIT(A) erred in concluding that the appellant failed to show the activities of the society promotes the objects. 5. The AO is not consistent in his conclusions or contentions to hold that the activities of the assessee society is charitable or non-charitable, if charitable nature ie relief to the poor or object of general public utility. 6. The AO erred in his observation that the assessee is not engaged in any charitable activity ignoring the fact that the activity of establi....
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....e activity of establishing and operating an electronic stabilizer assembly unit is part of carrying out its objects listed under clause 3(1)(2) and (5) of the Memorandum of Association. Therefore, this activity of the assessee cannot be looked as a mere activity of manufacture and sale of stabilizers but the ultimate effect of this activity is providing economic support to illiterate, poor rural women which is of charitable purpose as stated U/s. 2(15) of the Income Tax Act, 1961. Ld. AR further submitted that the main motto on the assessee society is not a business or profit motive hence the activities of the assessee are not of the nature of business but of charitable and therefore the denial of exemption U/s. 11 of the IT Act, 1961 by th....
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....e objects of the assessee-society ie., establishing and running a small scale unit for training and self sufficiency of rural poor women is of the nature of business activity which is not of charitable nature. The onus is on the assessee to prove with documentary evidence to establish that the assessee"s activities are not of business nature but of charitable as claimed by the assessee. The Ld. Revenue Authorities have clearly observed that the assessee"s claim of relief to the poor or help to the poor is not correct since the income and expenditure statements filed by the assessee reflects substantial profits from the activities of the assessee and therefore the profit motto exists very much. It is a fact that granting of registration u/s.....