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May 2024

Proviso to section 2(15) will not apply to a charity if the profit derived from the services rendered in furtherance of the object of general public utility is very meagre

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 2 mins

8 The Institute of Indian Foundrymen vs. ITO

ITA No.: 906 / Kol/ 2023

A.Y.: 2014–15

Date of Order: 18th March 2024

Section 2(15)

Proviso to section 2(15) will not apply to a charity if the profit derived from the services rendered in furtherance of the object of general public utility is very meagre

FACTS

The assessee society was registered under section 12A order dated 30th September, 1989 with the main object relating to the foundry industry (which was an object of general public utility). It derived income by way of contributions from the head office, membership fees, income from publication of the Indian Foundry journal, other grants and donations, interest on fixed deposits, etc. The surplus as per the profit and loss account was ₹17,70,380 which was around 2

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