The\u00a0 objects\/activities of the trust is \u00a0improvement in the town of Sangrur . The Assessing Officer \u00a0held that the\u00a0activities of the trust with regard to the acquisition of land and\u00a0development of the land and sale thereof cannot be treated as charitable activities under \u2018general public utility. The Assessing Officer \u00a0held that \u00a0the Assessee was covered by the proviso to section 2(15) of the \u00a0Act and could not be held to be engaged in charitable activities \u00a0therefore, the Assessee was not liable for exemption u\/ss 11 and 12\u00a0of the I.T. Act, read with \u00a0the provisions of section 13(8) of the Act .During the year, the Assessee had incurred a loss, i.e., excess expenditure over income. The Assessing Officer \u00a0assessed the income at nil . \u00a0The CIT(A) \u00a0up held the order of the Assessing Officer . On appeal the Tribunal held that \u00a0where the plots and premises\u00a0are sold at market price, the activity is not a commercial or business venture. It is sufficient if the trust does precisely what the last category in section 2(15) states, that is,\u00a0being involved in activities for the advancement of an object of general public utility; that these activities, which are undertaken by the assessee by virtue of the Punjab Town Improvement Act, 1922, include a proper systematic development of certain areas. Therefore, regulatory activity, necessitating fee or cess\u00a0collection in terms of enacted law, or collection of amounts in furtherance of activities such as education, regulation of the profession,\u00a0etc., are per se not business or commercial in nature. Statutory boards and authorities, who are under mandate to develop housing, industrial and other estates, including the development of residential housing at reasonable or subsidised costs, which might entail charging higher amounts from some section of the beneficiaries,\u00a0to cross-subsidize the main activity, cannot be characterised as\u00a0engaging in business. Accordingly \u00a0allowed the exemption under section 11 of the Act . (ITA No. 273 \/ Chd\/ 2020 dt . 25-5 -2023 ( AY. 2016 -17\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11 : Property held for charitable purposes – Object of improvement in the town of Sangrur \u2013 Activities cannot be held to be commercial in nature – Entitle to exemption . [ S. 2(15), 12 , 13(8) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-34962","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-95U","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/34962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=34962"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/34962\/revisions"}],"predecessor-version":[{"id":34963,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/34962\/revisions\/34963"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=34962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=34962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=34962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}