SOCIETY FOR ADVANCEMENT OF VILLAGE ECONOMY,GAYA vs. ACIT(EXEMPTION) CIRCLE, PATNA

ITA 14/PAT/2018Status: DisposedITAT Patna09 December 2025AY 2014-15Bench: SHRI SONJOY SARMA (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's argument that its Section 12AA registration was not cancelled. Therefore, the matter was remanded to the AO to re-examine the facts and ascertain if any reference for cancellation of registration was made and if any consequential order was passed.

What were the facts?

The assessee, a trust registered under Section 12AA, engaged in financial inclusion activities, had its exemption under Section 11 denied by the Assessing Officer (AO) and confirmed by the CIT(A). The AO held that the trust's activities constituted business, making it ineligible for exemption due to the proviso to Section 2(15).

What were the issues?

Whether the assessee's financial inclusion activities, conducted for a fee, fall under the proviso to Section 2(15) thereby disentitling it from exemption under Section 11, despite having a valid Section 12AA registration.

Which sections of the Income-tax Act were involved?

Section 2(15),Section 11,Section 12AA,Section 40(a)(ia)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, PATNA ‘DB’ BENCH AT KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

For Respondent: Md. Shadab Ahmed, CIR(DR)

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-I, Patna [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250(6) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2014-15 dated 24.11.2017. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

“1. FOR THAT Ld. CIT(A) erred in law and on the facts in confirming action of A.O. in holding that the appellant trust carried on activity in the nature of business and profession under the guise of Trust Act, 1882. Ld. CIT (A) ought to have held that the appel

The order continues below.

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