INCOME TAX OFFICER EXEMPTIONS 2(4), MUMBAI, MUMBAI vs. THE CHEMBUR GYMKHANA, MUMBAI

ITA 46/MUM/2025Status: DisposedITAT Mumbai16 October 2025AY 2013-14Bench: SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER & SMT.RENU JAUHRI (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred by not considering the Supreme Court's decision in ACIT vs. Ahmedabad Urban Development Authority (AUDA) regarding the interpretation of the proviso to Section 2(15). The Tribunal restored the appeals to the AO for de novo assessment.

What were the facts?

The Revenue appealed against the CIT(A)'s orders allowing exemption to The Chembur Gymkhana, a charitable trust, for multiple assessment years. The core issue revolved around whether the trust's activities fell under the proviso to Section 2(15) of the Income Tax Act, 1961, which restricts exemption for activities in the nature of trade, commerce, or business.

What were the issues?

Whether the activities of the assessee, a general public utility, are hit by the proviso to Section 2(15) due to engaging in trade, commerce, or business, thereby disentitling it to exemption under Section 11, especially in light of the Supreme Court's decision in AUDA.

Which sections of the Income-tax Act were involved?

Section 2(15),Section 11,Section 13

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Before: SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL & SMT.RENU JAUHRI

Hearing: 16.10.2025

PER BENCH :-

These four appeals are filed by the revenue against the orders of the National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 12.11.2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Years [A.Ys.] 2013-14, 2015-16,2016- 17 & 2018-19. P a g e | 2 ITA No. 46,47,48 & 491/Mum/2025 The Chembur Gymkhana

2.

The revenue has raised the following identical grounds in these appeals:

“1. Whethe

The order continues below.

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