Dismissing the appeal of the Revenue the Court held that when the registration is granted by the CIT(E), further probe by Assessing Officer into objects of Trust based on such objects is not permissible. Activities of to identify, enrol, allot work, regulate operation of private workers from time of inception, activities for advancement of general public utility. Surplus earned retained for carrying out activity cannot be treated as business activity Exemption cannot be denied. Amount advanced to Trustees, interest recognised on accrual basis, loans covered by adequate security and interest. Advance of loan cannot be treated as investments in violation of S.11(5) 11(3) of the Act there is no violation of Section 13(1)(c). 13(2) of the Act. As regards the accumulation of funds, form 10 filed for Assessment Year 1999-2000 showing purpose of accumulation. Purpose of accumulation is not general in nature. Activities carried on in accordance with approved charitable objects for which assessee was formed and registered there is no violation of Section 11(2). SLP of Revenue is dismissed as there was gross delay of 496 days in filing the SLP. (AY. 2003-04)
Asst. CIT v. Cargo Handling Private Workers Pool (2024)467 ITR 32/ 300 Taxman 450 (SC) Editorial : CIT v. Cargo Handling Private Workers Pool (2024)467 ITR 32 (AP)(HC)
S. 11 : Property held for charitable purposes-Denial of exemption When the registration is granted by the CIT(E), further probe by Assessing Officer into objects of Trust based on such objects is not permissible-Activities of to identify, enrol, allot work, regulate operation of private workers from time of inception-Activities for advancement of general public utility-Surplus earned retained for carrying out activity-Cannot be treated as business activity-Exemption cannot be denied-Advances to Trustees-Interest recognised on accrual basis-Loans covered by adequate security and interest-Cannot be treated as investments in violation of S.11(5) 11(3) of the Act-No violation of Section 13(1)(c). 13(2) of the Act. Accumulation of funds-Form 10 filed for Assessment Year 1999-2000 showing purpose of accumulation-Purpose of accumulation is not general in nature-Activities carried on in accordance with approved charitable objects for which assessee was formed and registered-No violation of Section 11(2)-Delay of 496 days in filing the SLP-SLP of Revenue is dismissed. [S. 11(2) 11(4A), 11(5), 12A, 13(1)(c), 13(2) Art. 136]