Case Law Details
PCIT (Exemptions) Vs Servants of People Society (Supreme Court of India)
Supreme Court remanded the matter for fresh consideration in respect of exemption u/s 2(15) or section 11 in respect of publication of advertisement for consideration in light of Ahmedabad Urban Development Authority.
Facts-
The Commissioner of Income Tax (“revenue”) is aggrieved by the impugned judgment and order of the Delhi High court. The impugned judgment upheld the decision of the Income Tax Appellate Tribunal (“ITAT”) which affirmed the views expressed by the Commissioner of Income Tax (Appeals) (“Appellate Commissioner”). The Appellate Commissioner and the ITAT were of the opinion that the respondent organisation (a registered society, hereafter also called “the assessee”) was a charitable trust entitled to the benefit of exemption and that it is registered u/s. 12AA and 80G of the Income Tax Act (hereafter called the “Act”) were valid.
Notably, AO denied the exemption invoking the proviso to Section 2(15) on the ground that the assessee is involved in trade, commerce or business as it manages and runs a printing press and a newspaper. The assessee argued that it was primarily a non-profit institution involved in charitable activities and did not engage in any trade, commerce or business or any such activity.
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