IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER &

SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER

1. ITA No. 7794/Mum/2025 (Assessment Year: 2014-15)

&

2. ITA No. 7795/Mum/2025 (Assessment Year: 2015-16)

Vanita Samaj, ITO (Exemption)

Veer Sawarkar Marg, Ward – 2(4), Dadar West, Mumbai – Vs. Type WX, AO Number

400 028 4, Range Code 103, Mumbai-400 020 PAN/GIR No. AAATV0071G (Applicant) (Respondent)

Assessee by Shri Anil Sathe, Ld. AR Revenue by Shri Vivek Singh, Ld. DR Date of Hearing 23.03.2026 Date of Pronouncement 07.04.2026 आदेश / ORDER PER MAKARAND VASANT MAHADEOKAR, AM:

These two appeals are filed by the assessee against separate orders passed by the learned Addl./JCIT – 2 from the office of Commissioner of Income Tax (Appeals) [hereinafter referred to as "CIT(A)"]under section 250 of the Income-tax Act, 1961[hereinafter referred to as "the Act"] for A.Ys. 2014–15 and

2015–16, arising out of the assessment orders passed by the Assessing Officer under section 143(3) of the Act. Since common issues are involved in both the appeals, they were heard together and are being disposed of by way of this consolidated order for the sake of convenience.

2. The details of the orders under challenge are as under:

Facts of the Case

3. The assessee is a trust registered under the Bombay Public Trust Act and also registered under section 12A of the Act. The registration had earlier been cancelled by the DIT(E), Mumbai; however, the same was restored by the Hon’ble Tribunal vide order dated 26.02.2014.

4. For the years under consideration, the assessee filed its return of income declaring Nil income after claiming exemption under section 11 of the Act. The case was selected for scrutiny and assessment was completed under section 143(3) of the Act. During the course of assessment proceedings, the Assessing Officer examined the nature of activities carried on by the assessee and the claim of exemption under section 11.

5. The Assessing Officer observed that the assessee had generated substantial receipts from activities such as letting out of hall, royalty from decorators, operation of flour mill and other similar activities. According to the Assessing Officer, such activities were in the nature of trade, commerce or business carried out on a regular and organised basis.

6. Before the Assessing Officer, the assessee submitted that it is a charitable trust engaged in activities for public welfare and that the receipts generated were incidental to its objects. It was contended that the activities carried out were not in the nature of business but were undertaken to support the charitable objectives of the trust. The assessee further contended that it had duly applied its income towards charitable purposes and was therefore entitled to exemption under section 11. It was also submitted that the provisions of section 2(15) were not attracted as there was no profit motive and the activities were not carried out in a commercial manner. However, the Assessing Officer was not satisfied with the explanation furnished and proceeded to deny the exemption.

7. The Assessing Officer held that the assessee falls within the category of ―advancement of any other object of general public utility‖ and that the proviso to section 2(15) of the Act was attracted inasmuch as the assessee was engaged in commercial activities for consideration. Consequently, by invoking section 13(8), the Assessing Officer denied exemption under section 11 of the Act.

8. Having denied exemption under section 11, the Assessing Officer proceeded to compute the income of the assessee under normal provisions as detailed below:

9. Aggrieved by the assessment order, the assessee preferred an appeal before the learned CIT(A). During the appellate proceedings, the learned CIT(A) granted multiple opportunities of being heard to the assessee. The assessee reiterated its submissions that it is a charitable trust and that the activities carried out are incident