Ramswaroop Das Niranjanlal Charitable Trust Vs DCIT (Chhattisgarh High Court)
Appellant/assessee filed return for AY 2011-12 on 30-9-2011 at as NIL. Its case was selected for scrutiny hence notice u/s 143(2) issued on 26-9-2012 which was served to the assessee on 1-10-2012 by registered post and thereafter, assessment was completed u/s 143(3) at ₹ 2,20,250/- on 30.03.2014. During the assessment proceedings AO observed that the assessee Trust had received ₹ 15,89,163/- from the business of running a Dharamshala and AO took view that since the assessee was registered as a charitable trust and was carrying out activities which were in the nature of “the advancement of any other object of general public utility” within the meaning of 2nd proviso to Section 2(15) , and had garnered business receipts of ₹ 15,89,163/- which was more than the prescribed amount of ten lakh rupees as per proviso therefore, its activities cannot be held as having been carried out solely for charitable purposes. Finally, AO Section 2(15) read with Section 13(8) of the Act declined the assessee’s claim for exemption under Section 11 of the Act and brought its surplus of 2,20,247/- to tax. Both CIT (A) as well as ITAT affirmed the order of assessment. Hence this appeal u/s 260A.
