Dismissing the writ petition the Court held that the critical issue related to the usage of funds by the assessee as this would determine whether its activities were charitable or otherwise. This had then to be seen in the context of section 2(15) of the Act. This exercise necessarily involved an appreciation of facts that the court was not inclined to embark upon in terms of Article 226 of the Constitution of India. In any event, no legal infirmity was made out to warrant intervention with the impugned orders, denying exemption to the assessee. (AY.2015-16)
Tamizhavel P. T. Rajan v. ITO(E) (2023) 452 ITR 45/ 333 CTR 420/ 227 DTR 51 (Mad.)(HC)
S. 11 : Property held for charitable purposes-Charitable purposes-Business activity-Amendment makes it necessary to ascertain if activities are for earning profit or for purposes of charitable institution-Ascertainment of facts could not be made in writ proceedings-Writ petition was dismissed. [S. 2(15) Art. 226]