Trust Denied Tax Exemption for Renting Property; Tribunal Remands Case for Reconsideration of Commercial Activity Profits.

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....The assessee trust was denied exemption u/s 11 as it was found to be systematically exploiting its property commercially by renting out space for exhibitions, corporate meetings, etc., which were not related to the objects of the trust. The Assessing Officer held that these activities were not incidental to attaining the trust's objectives. Additionally, the assessee failed to maintain separate books of accounts for such commercial receipts as required u/s 11(4A). The Tribunal observed that based on the Supreme Court's decision in Ahmedabad Urban Development Authority, an entity can be granted exemption if the profits generated while carrying out general public utility objectives do not exceed 20% of total receipts as per the second proviso.........