|
II. Direct Tax Case law:
1. Sabarmati Ashram Gaushala Trust Vs. ADIT (Exemption), Date of Pronouncement: 07.06.2013, ITA No. 670/Ahd/2013, ITAT-Ahmedabad
Section 2(15) of the Income Tax Act
Whether selling some product at a profit ipso facto hit the proviso to section 2(15) of the Act?
Held_Yes
The objective
of the proviso to section 2(15) is to deny exemption to such assessee
who are engaged in business activities in the garb of charitable
purpose. Mere selling some product at a profit will not ipso facto hit
the assessee by applying the proviso to section 2(15) and deny the
exemption available u/s 11.
Manner in
which the activities of the charitable trust/institution are undertaken
are highly relevant to decide the issue of applicability of proviso to
section 2(15). The cases where profit making is the object should be
distinguished from the cases, where, although the objects of the trust
are wholly charitable, but some profit was made out of the activities
undertaken by the Trust for the purpose of achieving the objects of the
general public utility.
(Please click here for judgment)
|
New User? 
Subscribe Now