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Facts
The appellant, a society engaged in research and development in microwave electronics, claimed exemption under Section 11 of the Income Tax Act. The Assessing Officer denied the exemption, holding that the society's activities were commercial and not charitable. The CIT(A) allowed the exemption, finding the dominant purpose to be charity.
Held
The Tribunal, following previous decisions of the Coordinate Bench and the Bombay High Court, held that the appellant society is entitled to claim exemption under Section 11 of the Act.
Key Issues
Whether the activities of the assessee society, engaged in research and development in microwave electronics, are charitable in nature and thus eligible for exemption under Section 11 of the Income Tax Act, or if they fall under the proviso to Section 2(15) making them commercial.
Sections Cited
2(15), 11, 10(21), 12AA, 143(3), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: SHRI AMIT SHUKLA & SHRI RATNESH NANDAN SAHAY
O R D E R Per: Ratnesh Nandan Sahay, Accountant Member: 1. This appeal has been filed by the appellant against the Order of the Ld. CIT (Appeals) passed u/s. 250 of the Income Tax Act [the ‘Act’ in short] ➤AY 2011-12: Para 3.3, Page 22 to 25 (Attached at Exhibit 3)
➤AY 2012-13: Para 3.3, Page 24 to 26 (Attached at Exhibit 4)
➤AY 2016-17: Para 3.3, Page 22 to 24 (Attached at Exhibit 5)
➤ AY 2017-18: Para 3.3, Page 21 to 24 (Attached at Exhibit 6) 6. The Assessee also submits that even in the regular scrutiny assessment for AY 2022-23 the income returned by the Assessee has been accepted by the AO. The order dated 05-04-2023 passed under section 143(3) r.w.s. 144B for AY 2022-23 is also attached at Exhibit 7. Please see Para 3.4 Pages 4 to 12.
In view of the foregoing, the Assessee submits that even after considering the decision of the Honourable Supreme Court in Ahmedabad Urban Development Authority (supra), the Department has accepted the submissions of the Assessee and consistently allowed the exemption under section 11 of the Act.
Sd/- Sd/- AMIT SHUKLA RATNESH NANDAN SAHAY JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 28.08.2024. Snehal C. Ayare, Stenographer Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai.