Tribunal held that the assessee is a statutory corporation established under the RTC Act, 1950 for providing transportation facilities to public by charging fares fixed by the State Government. The dominant and prime objective is not profit making hence proviso to section 2(15) is not applicable hence entitle to exemption under section 11 of the Act. (AY. 2010-11 to 2014-15)
Karnataka State Road Transport Corporation v. ACIT (2021) 214 TTJ 355 / 207 DTR 281 / 63 CCH 59 (Bang.)(Trib.)
S. 11 : Property held for charitable purposes-Economic and efficient transport system to the public-Charging fares-Dominant object is not profit making-Entitle to exemption. [S. 2(15), Companies Act, 1956, S. 25, Road Transport Corporation Act, 1950, S. 22]