“Section 10(15)(iv)”
The decision most relied on for Section 10(15)(iv) is India Trade Promotion Organization v. DGIT(Exemption) (371 ITR 333), cited in 128 judgments on BharatTax.
Leading authorities on Section 10(15)(iv)
An institution engaged in the advancement of general public utility retains its charitable character and eligibility for exemptions under Section 11 or approval under Section 10(23C)(iv) provided profit is not its predominant motive, even if it generates incidental surpluses or collects fees.
Guidelines issued by the Central Board of Direct Taxes (CBDT) under Section 119 of the Income Tax Act, which relax the rigour of law, are binding on all income tax officers responsible for implementing the Act, who must follow these orders and instructions.
CBDT administrative instructions and circulars are binding on income tax authorities and departmental officers, who must follow them during the assessment process and cannot act in contravention, even though these instructions are not binding on courts or assessees.
The essential condition for carrying on business, trade, or commerce is the making of a profit. Business is defined as repeated activity in the nature of trade, commerce, or service with a profit motive, distinguishing it from liberal arts, professions, or agriculture.
The selection of cases for scrutiny must be completed within the time prescribed by CBDT instructions. The department is bound by its own standards and cannot act with discrimination or selectively apply them.
Exemptions under Section 10 of the Income Tax Act are available to general insurance companies.
Statutory liabilities, like customs duty, are deductible only in the year they are actually paid, regardless of the assessee's accounting method, as per Section 43B.
The activities of an assessee can be regarded as charitable in nature, entitling them to the benefits of Section 11 of the Act, provided the facts and circumstances are identical to prior tribunal decisions.
