2026 (2) TMI 354

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...."1. Whether on the facts and in circumstances of the case, Ld. CIT(A), NFAC is justified in deleting the addition of Rs. 20,82,39,122/- as income under the head 'other Sources' for the assessment year under consideration. 3. The brief facts of the case are that the assessee, Gujarat Environment Service Society, is a charitable trust registered under the Bombay Public Trust Act and also holding registration under section 12A/12AB of the Income-tax Act, 1961 ("the Act"). The assessee is engaged in activities relating to environmental protection such as development and maintenance of gardens, plantation, cleaning and sanitation, composting and solid waste management. For the assessment year 2023-24, the assessee filed its return of income d....

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....even though undertaken on a contractual basis, were only a means to achieve its charitable objects and were not in the nature of trade, commerce or business. The assessee also submitted that there was no profit motive and that the entire income had been applied towards the charitable objects of the trust. 6. The Ld. CIT(A) examined the submissions of the assessee and the material available on record. While dealing with the grounds of appeal relating to denial of exemption under section 11, the Ld. CIT(A) placed reliance on the earlier orders passed by the Income Tax Appellate Tribunal in the assessee's own case for earlier assessment years, more particularly the decision of the ITAT, Ahmedabad Bench, for assessment year 2013-14. The Ld. ....

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....laimed under section 11 of the Act, on the ground that the receipts earned by the assessee were contractual in nature and not income derived from property held under trust and accordingly treated the surplus as taxable income under the head "Income from Other Sources". In appeal, the Ld. CIT(A), after examining the objects of the assessee, the nature of activities carried out and the manner of application of income, held that the activities of the assessee were purely charitable in nature, falling within the scope of preservation of environment as contemplated under section 2(15) of the Act. The Ld. CIT(A) further recorded a categorical finding that the contractual receipts were incidental to and in furtherance of the charitable objects of ....