Assessee eye hospital society was registered as a charitable institution under section 12AA\u00a0 It filed its return declaring nil income\u00a0 Assessing Officer held\u00a0 that surplus of assessee was 31.29 per cent of gross receipts. He held that\u00a0\u00a0 the\u00a0 assessee was involved in commercial activities which was a clear violation of provisions of section 2(15) and, thus, he treated net surplus as taxable income for year under consideration.\u00a0 CIT(A) held that the assessee had applied 85 per cent of its surplus, hence eligible for exemption.\u00a0\u00a0 On appeal the Tribunal held that\u00a0 once assessee was registered as a charitable institution under section 12AA, then it was to be seen whether income derived from property of society or activities of society were being applied to extent of 85 per cent on its objectivity or not.\u00a0\u00a0 It had not been provided that if charitable institution was generating higher percentage of surplus, then it would be disqualified as a charitable institution and requirement of law was that 85 per cent of gross receipts were required to be applied for charitable activities, which had been fulfilled by assessee. Order of CIT(A) allowing the exemption was affirmed. (AY. 2017-18<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11 : Property held for charitable purposes-Objects of general public utility-Eye hospital-Commercial activities-85 per cent of its gross receipts were applied for charitable activities-Eligible for exemption.[S. 2(15) 12A, 12AA] <\/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-56152","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eBG","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56152","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=56152"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56152\/revisions"}],"predecessor-version":[{"id":56153,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56152\/revisions\/56153"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=56152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=56152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}