TaxTMI 
TaxTMI 
2025 (8) TMI 834
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....hort "ld.CIT(A)). 2. This appeal is filed with a delay of 45 days. The assessee prayed for condoning the delay in filing the appeal and filed a petition for the same along with a supporting affidavit. We have gone through the affidavit and for the reasons cited therein, in our considered view, the delay can be condoned. We accordingly condone the delay in filing the appeal before us and we admit the appeal to be heard by us on merits. 3. The brief facts of the case are that the assessee is a trust registered u/s. 12A of the Income Tax Act, 1961 (hereinafter referred to as the "Act"). The object of the assessee is charitable in nature, being rehabilitation of visually challenged persons as well as persons affected with leprosy. The ass....
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....any other object of general public utility, it ceases to be a charitable purpose if it involves the carrying on of any commercial activity unless the activity is undertaken in the course of carrying out of such advancement of object of general public utility and the aggregate receipts from such activity does not exceed 20% of the total receipts. According to the AO, the assessee is engaged in business and its purpose is not charitable and hence the exemption claimed by the assessee to the tune of Rs. 1,65,03,510/- (which is the gross receipts of the assessee) was denied. Aggrieved by the order of the AO, the assessee preferred an appeal before the Ld.CIT(A). Before the first appellate authority (FAA), the assessee contended that u/s. 2(15) ....
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....see from the claim of exemption u/s. 11. 8. We have heard the rival contentions perused the grounds of appeal, order of the authorities below and the paper book filed by the assessee. The prime contention between the parties is that whether the activities of the trust would fall under the ambit of "relief of poor" or "advancement of objects of general public utility". If the activities are to be construed as "advancement of objects of general public utility", then the proviso to section 2(15) would become applicable, wherein receipts from commercial activities of the trust should be restricted to 20 percent of the total receipts, for the trust to exist for charitable purpose. If the activities of the trust are to be treated as "relief of....
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....y challenged, among the other objects. It is also seen from the assessment order that the AO does not provide any reason as why the trust must be treated as the one which would fall under the ambit of "advancements of objects of general public utility". The ld.CIT(A) also holds that the assessee is engaged in the "advancement of object of general public utility", but does not provide the rationale for holding so. Both the authorities below had ventured out to hold the activities of the assessee-trust as the one with the "advancement of object of general public utility". 11. The moment the assessee-trust is treated as the one with the object of "relief of the poor", proviso to section 2(15) of the Act becomes inapplicable to the assessee.....
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....r medical relief, the requirement of the definition of "charitable purpose" would be fully satisfied, even if an activity for profit is carried on in the course of the actual carrying out of the primary purpose of the trust or institution. When the purpose of a trust or institution is the advancement of an object of general public utility, it is that object of general public utility and not its accomplishment or carrying out which must not involve the carrying on of any activity for profit. So long as the purpose does not involve the carrying on of any activity for profit, the requirement of the definition would be met and it is immaterial how the monies for achieving or implementing such purpose are found, whether by carrying on an activit....