Police Canteen Transactions With Members Not Business Activity; No Audit Required Under Section 44AB: ITAT

The ITAT ruled that a police canteen’s transactions with its members do not constitute a “business activity” under the Income Tax Act, thus exempting it from tax audit requirements under Section 44AB. The bench observed that such transactions were mutual in nature and lacked a profit motive. The decision reiterates that cooperative or welfare-based institutions operating for members’ benefit are not taxable as business enterprises, reducing compliance burden for non-commercial entities under Indian tax law.