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November 2025

Charitable purpose — Exemption u/s. 11 and 12 — Disqualification for exemption where activities in the nature of trade or business carried out — Income from ticket sales by organizing dance events and food stalls — Decision of court in favour of assessee in appeal for earlier assessment years on identical facts and circumstances —Held that organizing cultural events did not constitute business activity to deny exemption and dismissed the appeal filed by the Department.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 2 mins

42. CIT (Exemption) vs. United Way of Baroda

(2025) 478 ITR 530 (Guj): 2024 SCC

OnLine Guj 4431

A. Y. 2015-16: Date of order 22/01/2024

Ss. 2(15), 11, 12 and 13(8) of ITA 1961

Charitable purpose — Exemption u/s. 11 and 12 — Disqualification for exemption where activities in the nature of trade or business carried out — Income from ticket sales by organizing dance events and food stalls — Decision of court in favour of assessee in appeal for earlier assessment years on identical facts and circumstances —Held that organizing cultural events did not constitute business activity to deny exemption and dismissed the appeal filed by the Department.

For the A. Y. 2015-16, the assessee, a trust, which organized dance events during festivals, earning income from ticket sales and food stalls filed a nil return claiming exemption u/s. 11 and 12 of the Income-tax Act, 1961. The Assessing Officer denied exemption treating these activities as business under the proviso to section 2(15) and accordingly made disallowances.

The CIT(Appeals) partly allowed the assessee’s appeal. The Tribunal confi

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