Exemption Section 11 & 12 Approved to State Road Transport Association for Charitable: ITAT

Under Section 11 and 12 the Income Tax Appellate Tribunal (ITAT), New Delhi approved the privilege to Association of State Road Transport which is qualified as a foundation for charitable goals.

The taxpayer of Association of State Road Transport facilitates as an apex regulating organization for all Nationalized State Road Transport Corporation which executes working inside the Ministry of Road Transport and Highways also it was created for the improvement of the Public transportation system in the country and to help its stakeholders STUs by giving parts of vehicles in cheap prices so for the stakeholders, STUs can run its passenger bus economically.

Read Also: Income Tax Dept Offers Online E-calculator to Assess Tax Benefits Recently the income tax department has launched the e-calculator for the taxpayers to find out the benefits on their income tax received by the individuals

The AO on obliging the expenses specifies that taxpayers have made an expenditure of Rs.1,96,28,414 out of the total income of Rs.24,74,22,943 and displayed a surplus of Rs.5,11,38,828. Moreover, it is seen that the income of the taxpayer also seeks that the revenue from the test laboratory and consultancy receipts etc. AO sees that the taxpayer has conducted trade and business as an activity, thus the taxpayer was asked that how he will provide charity in the context of the change proviso to Section 2(15) applicable from April 1, 2009, onwards.

Read More: Unified System of Taxation for One Nation One Road Tax on Vehicles What is One Nation One Road Tax? One Nation One Road Tax is a proposal from GST council to make one road tax across the country just like the Goods and services

The taxpayer made the brief submission but it does not accept AO. The activities do not come below the division of systematic regular mythological revealing of teachings for the overall growth of the students and thus the taxpayer cannot consider it the thought of mutuality. Thus the taxpayer has failed it to fall for the charitable view along with the common association.

The AO finishes the assessment requesting the proviso to section 2(15) and the total income of the taxpayer was discovered at Rs.5,11,38,830. The assessee carried the case to CIT(A) has noticed that laboratory testing and consultancy is the major object of the assessee cooperation and these activities cannot be regarded as the main object to recurring profits. The Vice president Sushma Chowla supported CIT(A)s order and addressed the AO to permit privilege beneath section 11 and 12 with consequent advantages to the assessee.