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1 - 4 of 4 (0.19 seconds)Rajasthan State Agricultural ... vs Commissioner Of Income Tax on 22 December, 2006
That means the benefits will not be available to the Assessee for the
assessment year in which the gross receipts of income exceeds the limit
of Rs.10.00 lacs, however, that does not mean that such benefits will
not be available to the institution for all other assessment years during
which its receipts does not cross the limit of Rs.10.00 lacs. The word
"previous year" mentioned in the second proviso makes it liberal to get
an interpretation that it is not the registration of the institution as
charitable institution which is affected, rather, it is the eligibility of the
said institution to get tax exemption/ benefits which is affected that too
for the relevant year during which the gross receipts of the institutions
cross the limit of Rs.10.00 lacs. The insertion of second proviso has not
made the definition restrictive or rigorous rather with the insertion of
second proviso to section 2(15) of the Act, the rigor or restrictive
nature of the definition has been diluted and has been made wide
enough to include related business activities of the trust/institution, as
described in the first proviso to section 2(15) of the Act, also within the
scope of definition of charitable purposes. The limit of receipt upto
Rs.10.00 lacs during the 'previous year' as mentioned in the second
proviso, has made the section further liberal mandating to observe the
charitable character of the concerned trust/ institution from year to
year basis. For the previous year, during which the gross receipt
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income crosses limit of Rs.10.00 lacs, the trust will not get exemption
or benefit of its being charitable in nature despite its carrying out
charitable activities. However, it will get such benefit if it is registered
as charitable institution and income from business activities, as
mentioned in first proviso to section 2(15), does not cross limit of
Rs.10.00 lacs. Our view in this respect is fortified from the judgment of
the co-ordinate Bench decision of the Tribunal in the case of Rajasthan
Housing Board vs. CIT (2012)21 Taxmann.com77(Jp).
Section 25 in The Companies Act, 1956 [Entire Act]
The Finance Act, 1996
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