Activities of Indore Development Authority cannot fall within purview of section 2(15) of Income-tax Act, 1961
Since the main predominant object of the Indore Development Authority is profit making, therefore, there is no infirmity in the order of CIT in denying registration u.s 12A.12AA to the Indore Development Authority
[2010] 6 taxmann.com 132 (Indore - ITAT)
ITAT INDORE BENCH, INDORE
Indore Development Authority
v.
CIT
ITA No. 366.Ind.2008
July 6, 2010
In this judgement decision of Goa Daman & Diu Industrial Development corporation V First ITO 15 ITD 447 ( Pune) where it is held that "though the activity of the appellant might be activity of profit but not activity for profit. The assessee has no profit motive though it has earned income in the process. That the activities of the trust were for a public purpose was clear from the enactment. Thus the assesee fulfilled the conditions for exemption u/s 11." has not been considered . Now the issue should be refrred to special bench .
here the distinction has been brought in between activity of Profit and activity for profit.