Click Here For Best Books On Taxation & Law. Upto 60% Off On Select Titles. Free Shipping & Pay On Delivery!
 

Click Here To Subscribe To Our Free Newsletter

Home › All Judgements › Army Welfare Placement Organization vs. DIT (E) (ITAT Delhi)

Army Welfare Placement Organization vs. DIT (E) (ITAT Delhi)

Posted on by editor — 1 Comment ↓
COURT:
CORAM: ,
SECTION(S): , ,
GENRE:
CATCH WORDS: ,
COUNSEL:
DATE: January 22, 2015 (Date of pronouncement)
DATE: February 2, 2015 (Date of publication)
AY: -
FILE: Click here to download the file in pdf format
CITATION:
S. 2(15): Receiving fees simplicitor is not reason enough to hold that the activity is not a charitable activity. The fundamental essence of the activity has to be seen

The assessee institution is set up by the Indian Army and it seeks to promote the well being of their personnel after their retirement from the service, as also of the widows and dependents of the brave army men who sacrifice their lives, and help them integrate in the civil society by taking up suitable employment. This is surely an activity of general public utility, and, therefore, covered by the definition of ‘charitable purposes’ under section 2(15). The true test for deciding whether an activity is business activity is (i) whether the said activity undertaken with a profit motive, or (ii) whether the said activity has continued on sound and recognized business principles, and pursued with reasonable continuity. Clearly, therefore, in a situation in which an activity is not undertaken with a profit motive or on sound and recognized business principles, such an activity cannot be considered to be a business activity.

Related Posts:

  • Bellsea Ltd vs. ADIT (ITAT Delhi) Auxiliary and preparatory activity, purely for tendering purpose before entering of the contract and without carrying out any activity of economic substance or active work qua that project cannot be construed as carrying out any activity of installation or construction. Clause (g) of Article 5(2) ostensibly refers to activity based…
  • Priyatam Plaschem Pvt. Ltd vs. ITO (ITAT Delhi) The A.O. failed to conduct scrutiny of the documents at assessment stage and merely suspected the transactions in question on the irrelevant reasons. The A.O. did not make any enquiry from the Banker of the Investor and Income Tax record of the Investor Company. The valuation report filed by the…
  • Cinestaan Entertainment P. Ltd vs. ITO (ITAT Delhi) There is another very important angle to view such cases, is that, here the shares have not been subscribed by any sister concern or closely related person, but by an outside investors like, Anand Mahindra, Rakesh Jhunjhunwala, and Radhakishan Damania, who are one of the top investors and businessman of…
  • Moti Adhesives Pvt. Ltd vs. ITO (ITAT Delhi) All the relevant and necessary documents required to establish the subject transaction of share capital received are brought on records before AO and Ld CIT(A) and have totally remained uncontroverted. Specially the fact of positive response made by share holder in response to enquiry made u/s 131 and confirmation of…
  • ITO vs. Gisil Designs Pvt. Ltd (ITAT Delhi) The same conduct of the AO continued even after passing of the impugned appellate order because the appellate order was kept pending without any action and no appeal has been filed by the Department within the period of limitation. It is simply stated in the application for condonation of delay…
  • Sunil Agarwal vs. ITO (ITAT Delhi) Section 151 of the Act clearly stipulates that the CIT(a), who is the competent authority to authorize the reassessment notice, has to apply his mind and form an opinion. The mere appending of the expression 'approved' says nothing. It is not as if the CIT(A) has to record elaborate reasons…

Related Judgements

  1. National Horticulture Board vs. ACIT (ITAT Delhi) 

    Even in a situation in which an assessee receives a fees or consideration for rendition of a service to the business, trade or commerce, as long as such a service is subservient to the charitable cause and is not in the nature of business itself, the disability under second…
  2. Delhi & District Cricket Association vs. DIT (E) (ITAT Delhi) 

    s.12AA(3) has no retrospective effect as it is neither explanatory nor clarificatory in nature and the CIT has no power to rescind the order passed by the CIT prior to 1st Oct.2004. For an assessee to be classified as charitable under the residuary category i.e. “advancement of any other…
  3. Indian Chamber of Commerce vs. ITO (ITAT Kolkata) 

    (i) The purpose for which the assessee association, i.e. The Indian Chamber of Commerce, was established is a charitable purpose within the meaning of S. 2(15) of the Act. The assessee is carrying out the said activities which are incidental … Indian Chamber of Commerce vs. ITO (ITAT…
  4. ACIT vs. The Tribune Trust (ITAT Chandigarh) 

    (i) The assessee trust is doing only one activity of printing and publishing of newspaper. This activity was held to be of charitable in nature by the Privy Council in the Trustees of The Tribune Press Lahore 7 ITR 415. … ACIT vs. The Tribune Trust (ITAT Chandigarh)…
  5. EXL India Business Services Pvt Ltd vs. ACIT (ITAT Delhi) 

    The assessee filed the return of income of 29th October 2007, and that the time limit for issuance of notice, under section 143(2), selecting the case for scrutiny assessment expired on 30th September 2008. It is also an admitted position … EXL India Business Services Pvt Ltd vs….
One comment on “Army Welfare Placement Organization vs. DIT (E) (ITAT Delhi)”
  1. Aggrawal R. K. says:
    February 2, 2015 at 2:12 pm

    Salaam, Tribunal.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*