Exemption U/s. 11 cannot be denied merely because func­tion hall was let out on rent for various activities

ITO Vs. Kalinga Cultural Trust (ITAT Hyderabad) By letting out function hall the assessee is not involved in commercial activity so as to dis entitle it from claiming exemption under section 11. Therefore, considered in the aforesaid perspective, there being no dispute to the fact that the dominant object of the assessee is charitable in nature, the proviso to section 2(15) cannot be applied to deny exemption to the assessee under section 11 of the Act. In our view, the Assessing Officer without examining the issue in a proper perspective has abruptly concluded that the assessee is not entitle...