Section 11 exemption cannot be withdrawn merely for profit from certain incidental or ancillary activities of the trust

JCIT(OSD), (Exemptions) Vs Patiala Improvement Trust (ITAT Chandigarh) The AO noticed that during the year relevant to the assessment year under consideration the assessee carried on the business of sale and purchase of residential plots and commercial properties and earned huge net profit of Rs. 9,95,74,223/-, which does not fall within the ambit of the advancement of any other object of general public utility under section 2(15) of the Act. Accordingly, the AO asked the assessee to justify its claim and after hearing the assessee rejected the claim of the assessee. The AO rejected the claim ...