Section 11 exemption cannot be denied for providing hostel facilities to staff & students

Durga Charitable Society Vs JCIT  (ITAT Delhi)

Charitable Society providing hostel facilities to staff and students is integral part of ‘Educational Activities’,  and Section 11 exemption allowed

Durga Charitable Society (Appellant) is a Society duly registered under Society Registration Act, 1860 and is engaged in running various educational institutions, medical colleges and charitable hospitals.

Assessing Officer– The return of income for Assessment Year 2010-11 declared NIL income. Assessed surplus of Hostel as business income under Section 114(A) of the Income Tax Act, 1961 (“IT Act”) and disallowed hostel expenses amounting to Rs. 3,92,25,432/- and made addition under the head income from business and profession. Being aggrieved, the Appellant appealed.

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