Case Law Details
ITO Vs Indian Youth Centre Trust (ITAT Delhi)
The assessee company is a trust registered u/s 12A of the Act and is also registered u/s 80G(5)(vi). The return filed by the assessee trust was subjected to the scrutiny assessment. In the course of the scrutiny assessment the Assessing Officer took a view that the receipts of income in relation to hiring of auditorium and conference hall and running of Hostel/canteen activities are in the nature of business receipts and thus, would fall outside the ambit of expression charitable purpose contemplated u/s 2(15) read with proviso thereto of the Act. The AO, accordingly, denied exemption claimed by the trust u/s 11 of the Act and consequently made an addition of Rs. 1,84,38,140/- treating such income to be arising as normal AOP.
We have carefully considered the rival submissions as pointed out on behalf of the assessee. The issue is squarely covered in favour of the assessee. On a broader reckoning, it was held by the coordinate bench that the aforesaid income of the trust is incidental to attainment of the main objects of the trust that is to establish, maintain and conduct one or more National or International Youth Centers in India for the benefit of foreign students and youth delegations as well as individuals visiting India which activity has been recognized as charitable activity and the registration has been granted to the assessee by the Income Tax Department.
The issue having been decided in favour of the assessee in identical facts situation in the earlier years, we do not see any reason to depart there from. We thus, see no merit in the appeal of the Revenue.
FULL TEXT OF THE ORDER OF ITAT DELHI
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