- (1.) This is an appeal filed by the department under Section 260-A of the Income Tax Act, 1961 against the order of the Tribunal dated 18.02.2011. The questions of law sought to be answered are hereunder:- "(1). Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in directing that exemption u/s 80-G (5) (vi) of the IT Act, 1961 may be granted to the assessee on the sole ground that the assessee had been granted registration u/s 12-A of the IT Act previously, when the fact remains that Section 12-A and Section 80-G are entirely exclusive of each other and grant of registration u/s 12-A of the IT Act, 1961 to a particular institution does not make it impending upon the CIT to grant exemption u/s 80-G also to the said Trust/Association compulsorily ? (2) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in directing that the assessee be granted exemption u/s 80-G of the I.T. Act, 1961, when the activities carried out by it pertaining to 'Animal Care' do not fall under the definition of 'Charitable Purpose' as enunciated in Section 2 (15) of the I.T. Act, 1961 ?"
(2.) The uncontroverted facts are that the assessee was a Society, which was registered as a charitable organization. The registration was granted under Section 12-A of the Income Tax Act by the CIT but the same CIT dismissed the application filed by the assessee under Section 80-G (5) (vi) of the Income Tax Act seeking to hold that the activities being carried out by the Society did not fall within the meaning of charitable activities as laid down under Section 2 (15) of the Act. The assessee was involved in animal care and was incurring expenses towards animal care such as food, medical etc.
(3.) The Tribunal has rightly upheld the contention of the assessee that the activities being carried out by it would qualify as charitable activities in view of the proviso to Section 2(15), which read as under:- "2(15) "Charitable purpose' includes relief of the poor, education, medical relief, [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and the advancement of any other object of general public utility. Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or applications, or retention, of the income from such activity:";