SAE India Vs DCIT (Madras High Court)
In the matter abovementioned Hon’ble Madras HC denied to grant any relief to the petitioner by holding that ITAT is the ultimate fact finding body and findings of facts of the Tribunal cannot be interfered under Section 260A of IT Act.
Assessee was registered u/s.12AA AY 2004-05 onwards which filed return declaring NIL Income. AO noticed that society was formed with the object of encouraging the creation, maintenance and adherence of code of conduct for the profession of mobility engineering, etc. and held that the objects of the assessee falls under last limb of the definition of ‘charitable purpose’ as defined u/s.2(15), i.e. any other objects of General Public Utility (GPU) and accordingly it was asked to explain ‘as to why’ exemption u/s.11 of the Act, shall not be denied’. During the impugned assessment year the activities of the assessee clearly falls within the ambit of amended provisions of Sec.2(15) of the Act, as the assessee’s main object is GPU and the activities of the assessee are in the nature of trade, commerce or business. Since, the gross-receipts from the GPU activity is in excess of prescribed limit as per provisions of Sec.2(15) of the Act, the assessee does not entitle for exemption u/s.11 of the Act.
