|Assessee was a trade association trust of advertising agencies. It held fest in Goa every year in which it invited eminent speakers from international advertising agencies as well as from Indian media. Surplus generated out of ‘Goa Fest’ was accumulated and set apart. Same was invested as per modes/forms specified in section 11(5), i.e., deposited in bank in form of fixed deposits and saving account.|
|Assessee claimed exemption under section 11 on account of fest receipts and interest on deposits. Assessing Officer (AO) denied the exemption stating that the entire income was hit by proviso to section 2(15).|
|The Mumbai ITAT held that since Fest organised by assessee was clearly towards advancement of assessee’s object of general public utility, receipts from said Fest and interest received on money deposited were entitled to exemption under section 11.|
Income from surplus generated from ‘Fest’ organised by trade association is eligible for exemption u/s 11.
Prakhar Kalani (B.Com, ACA, DISA), Partner at Kalani Gattani & Co. Prakhar Kalani is a Qualified Chartered Accountant . contact him @ email@example.com