Case Law Details
U.P. Awas Evam Vikas Parishad Vs ACIT (ITAT Lucknow)
Held that exemption u/s 11 will not be available to an assessee if the total income of the assessee includes any income which is hit by the proviso to provisions of section 2(15) of the Act.
Facts-
The assessee is a “Parishad” namely “The Uttar Pradesh Awas Evam Vikas Parishad” which has been incorporated by the Legislative Assembly vide Uttar Pradesh Awas Evam Vikas Parishad Adhiniyam 1965. The scope of activities to be performed by the Parishad are contained under section 15 of the enactment under the head “function of the board” and through the “Parishad” it is the Government of Uttar Pradesh itself that has been carrying on the objects of the general public utility, in due discharge of its functions, duties and thereby it has acquired the status of a State under Article 12 of the Constitution of India.
The assessee has been granted exemption u/s 12A of the Act being a charitable organization for the achievement of advancement of objects of general public utility. The assessee filed returns of income claiming its income as exempt u/s 11 of the Act. The Assessing Officer denied the exemption u/s 11 by holding that the assessee was hit by the proviso to section 2(15) of the Act as the assessee has been doing the activities which amount to carrying on of business or trade.
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