The appeal concerning the exemption of newspaper income utilised for charitable purposes has been remanded by the Supreme Court. 

With reference to the judgement in CIT vs. Ahmedabad Urban Development Authority, the division bench of Justice S. Ravindra Bhat and Justice Dipankar Datta remanded the case to the AO for further consideration of the nature of receipts held by the assessee, who is engaged, among other things, in newspaper publishing, and to make new determinations regarding whether the assessee is a charitable trust that is entitled to Section 11 income exemption.

The respondent/assessee society claimed that during the freedom movement for promoting national development, public awareness, and the welfare of the populace in 1921, Lala Lajpat Rai created the organisation. The renowned Odisha freedom fighter Shri Pt. Gopa Bandhu Dass left his property and printing press in his will, and it is currently running the Oriya newspaper "Samaj" for the benefit of the populace. 

The assessee had a Section 11 exemption, but it had been denied during the fiscal year 1973–74. Later, the ITAT allowed it, and the High Court upheld that decision. 

The assessee claimed that it did not engage in any trade, commerce, business, or other activities and that it was largely a non-profit organisation that carried out charitable activities.

The assessee went to the Appellate Commissioner, who accepted its argument and said that the income it made should be exempt. The ITAT and the High Court both rejected the revenue's appeals of the case. 

The agency argued that the exemption granted to the assessee was improperly granted by the Appellate Commissioner and the Tribunal. The assessee generates income from selling newspapers as well as significant amounts from advertising. 

The respondent is a charitable trust that is entitled to income tax exemption, according to the court's order that the AO reassess the records and pertinent papers and reach new conclusions. Within four months, the AO must conclude the hearing and issue orders.

Case Title: PCIT Versus Servant of People Society
Citation: CIVIL APPEAL NO(S). 614 OF 2023

Appearance of the Advocates:-

For Appellant(s) 
Mr. Jogy Scaria, AOR
Mr. Pradeep Kumar Gupta, Adv.
Ms. Beena Victor, Adv.
Ms. Priya M., Adv.
Mr. Ravi Lamod, Adv.

Mr. Balbir Singh, A.S.G.
Mr. Raj Bahadur Yadav, AOR
Mr. Ashok Panigrahi, Adv.
Mr. Chinmayee Chandra, Adv.
Mr. Prashant Singh, Adv.
Mrs. Monica Benjamin, Adv.
Ms. Meena Devi, Adv.
Mr. Prasenjit Sarkar, Adv.

For Respondent(s) 
Mr. J.K. Mishra, Sr. Adv.
Mr. D. Mahesh Babu, AOR
Mr. Ganesan Subbian, Adv.
Mr. Shishir Pinaki, Adv.
Mr. Dhanaeswar Gudapalli, Adv.
Mr. Kasoju Mahesh Chary, Adv.
Ms. Mallika Das, Adv.
Mr. Balbir Singh, A.S.G.
Mr. Raj Bahadur Yadav, AOR
Mr. Ashok Panigrahi, Adv.
Mr. Chinmayee Chandra, Adv.
Mr. Prashant Singh, Adv.
Mrs. Monica Benjamin, Adv.
Ms. Meena Devi, Adv.
Mr. Prasenjit Sarkar, Adv.