Case Law Details
Testing and Consultancy Services provided for a fees without profit motive not falls within the ambit of Section 2(15) of Income Tax Act
Brief Facts of the Case and Question
Brief Facts: The assessee is registered under the provisions of Section12A of the act with effect from 27.4.1982 and the assessee has also been notified as a charitable organization u/s 10(23C) (iv) of the Act vide notification no. 1348 dated 31.10.2007 and these registration, approval and notification are still subsisting as on the date. Assessee filed its return of income on 30.3.2010 declaring return income at nil. Thereafter the assessment in this case was completed on 28.12.2011 at an income of Rs. 4,39, 07,729/- being accumulated amount in financial year 2003-04 not utilized within a period of 4 years which was expired on 31.3.2009.
Assessing Officer accepted nil return of income u/s 143(3) of the act but made addition of accumulated amount as per Clause (a) given after third proviso to section 10 (23C) (iv) of the Act. Subsequently on going through the records it was noticed by the DIT (E) that the assessee had received under the head of “revenue from tax laboratory” of Rs. 7.72 crores and “consultancy receipts” of Rs. 62.47 lakhs which were found to be commercial in nature by the DIT (E). The DIT (E) proceeded to issue notice u/s 263 of the Act in pursuance by observing that as per amended provisions of Section (2) (15) of the Act.
Question Raised:
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