No applicability of proviso to section 2(15) if earning of surplus with no profit motive

DCIT Vs Ernet India (ITAT Delhi)

Conclusion: Merely earning surplus by assessee did not result into the conclusion, that assessee was carrying on its activities, which could be termed as business, trade, or commerce, charging a nominal fee to use coding system and to avail of advantages and benefits therein was neither reflective of business aptitude nor indicative of profit-oriented intent.  Accordingly, proviso to section 2(15) did not get attracted, and hence, there was no justification for denying exemp

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