2024 (1) TMI 1473

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2024 in ITA No.7/Ahd/2020 for the Assessment year 2015-16, by proposing following questions of law : "(i) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal is justified in confirming the order of the CIT(A) holding that the activities of the assessee were not covered by the proviso to section 2(15) r.w.s 13(8) of the Act and was eligible for the benefits of section 11 and 12 of the Act ignoring the guidelines laid down by Hon'ble Supreme Court of India regarding significantly high mark-up in the case of ACIT vs Ahmedabad Urban Development Authority dated 19.10.2022 reported in [2022] 143 taxmann.com 278 (SC) and ACIT(E) vs. AUDA dated 3.11.2022 in MA no. 1849 of 2022. (ii) Whether on t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessment Year 2015-16 on 20.9.2013 declaring its income at Rs.NIL. The assessment order under Section 143(3) of the Act was passed on 11.12.2017 determining the total income at Rs.6,84,28,932/-. In the assessment order, the assessee was allowed the expenditure incidental to business income of Rs.3,10,93,748/- and after disallowances of accumulated surplus of Rs.1,08,79,980/-, corpus fund of Rs.1,58,31,976/-, disallowance of deduction of Rs.94,97,051/- under Section 11(1)(a) of the Act. As it appears, while finalizing the assessment order, the Assessing Officer denied the exemption claimed by the assessee under Sections 11 and 12 of the Act, holding, inter-alia, that the assessee Trust falls under the ambit of provisio 1 and 2 of Section 2(....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he income received by the assessee is from organizing the event of Garba by sale of tickets and also leasing out food and beverages outlets at the venue of the event. However, the dominant and main object of the assessee cannot be said to be organizing the event of Garba. The charitable activities which the assessee has been undertaking has been discussed by the Appellate Tribunal. We take notice of the fact that the assessee has been supporting 120 non-government organizations. The assessee is into health and human services for the purpose of improving the quality of life in the society. The objectives of the Society includes mobilizing resources from the local communities. It organizes medical camps for thalassemia affected children. It a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the activity may be regarded as a business even when the profit motive cannot be established/ proved. In such cases, there should be evidence and 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. 14. In the overall view of the matter, more particularly, having regard to the concurrent findings recorded by the two authorities, we are of the view that we should not interfere with the order passed by the Appellate Tribunal. 15. In the result, this appeal fails and is hereby dismissed." 5. Considering the af....