Character of charitable purpose gets lost when receipts from business activity is more than 20%

Maharaja Shivchatrapati Pratishthan Vs Tax Recovery Officer (ITAT Pune) ITAT Pune held that as receipts from business activity is more than 20% of the total receipts, character of ‘charitable purpose’ as given in section 2(15) will be lost and accordingly, exemption under section 11 of the Income Tax Act not available. Facts- the assessee is a trust and engaged in highlighting life of Chatrapati Shree Shivaji Maharaj by organizing drama “Janta Raja”. The assessee was registered u/s. 12A of the Act on 20-06-1974. According to the AO, the assessee claimed exemption of receipts of Rs.1,32...