High Court held that assessee was carrying out activity main or primary purpose of which was charitable and just because members of assessee-company were benefitted and their statutory liability was discharged by assessee-company, same by itself, would not be sufficient to hold that assessee had not been set up for charitable purpose. Court also held that since dominant object of assessee was not only preservation of environment, but also one of general public utility, assessee was entitled to seek exemption under section 11. SLP filed by revenue was dismissed in view of low tax effects. (AY. 2009-10)
CIT (E) v. Naroda Enviro Projects Ltd. (2025) 304 Taxman 186 (SC) Editorial : CIT (E) v. Naroda Enviro Projects Ltd (2019)419 ITR 482 / (2020) 118 taxmann.com 378 (Guj)(HC)
S. 11 : Property held for charitable purposes-Dominant object was not only preservation of environment, but also one of general public utility- liquid and solid industrial waste generated by polluting industries in Common Effluent Treatment Plant and Total Suspended Disposal Facility and did anciliary activities for purpose of curbing pollution- Entitled to exemption-Monetary limits- SLP dismissed due to low tax effects. [S. 2(15), 268A, Art, 136]
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