ITAT Upholds Tax Exemption for Trust’s Cafeteria Income

ITO Vs Suvasini Charitable Trust (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has affirmed the decision of the Commissioner of Income Tax (Appeals) [CIT(A)], upholding the tax exemption for Suvasini Charitable Trust. The dispute centered on the taxability of surplus generated from the trust’s “Premwati Cafeteria,” which the Assessing Officer (AO) had deemed a commercial activity, thus disallowing the exemption under the amended provisions of Section 2(15) of the Income Tax Act, 1961. The ITAT’s ruling on May 17, 2012, effectively concluded that th...