Ahmedabad bench of the ITAT observed that the activities of the Gujarat Environment Service Society are charitable in nature.
The main issue before the Tribunal was that whether the assesse is entitled for benefit of section 11(1)(a) of the Income Tax Act, 1961 or not. Section 11(1)(a) is about exemptions related to charity.
The department, in the instant case, withdrawn the registration granted to the assessee by invoking section 2(15) of the Income Tax Act, 1961. Subsequently, the exemptions under section 11 enjoyed by the assessee were denied on ground that the activities of the assessee is in the nature of business. Thereafter, the appellant trust was granted registration u/s 12A and it has been allowed deduction as per provisions of section 11(1)(a).
The Assessing Officer, while completing assessment for the relevant year denied the exemption by observing that the appellant’s objects does not involve relief to the poor, education, medical relief and preservation of environment including water sheds, forests and wild life. According to him, the main object of the appellant trust are covered by the clause relating to preservation of environment and hence, the provisions relating to advancement of any other object of general public utility are not applicable to the appellant.
The CIT(A) granted relief to the assessee-society by finding that its’ main objectives were preservation of environment of the society, To undertake programs in environmental extension aimed at improving the health of people, To provide services for the testing of the water, air, sewage etc, To provide services to its members and others for protecting the environment, To provide services for tree plantation etc, To provide sanitation and other services for the maintenance of clean environment etc.
The ITAT bench observed that in this case the the activities of the appellant trust are in the nature of charitable activities as defined u/s 2(15) of the IT Act, 1961. Moreover, on account of similar activities, the appellant has been granted exemption u/s 11(1)(a) in preceding years and as on the date of passing of assessment order, the registration granted to the appellant trust u/s 12A was still in force.
Finally the ITAT bench Rajpal Yadav (Judicial Member) has dismissed both the appeals by declaring
that the activities of Gujarat Environment Service Society are charitable in nature.
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