https://www.taxtmi.com/caselaws?id=761655 ITAT Delhi held that CIT's revision u/s 263 was unsustainable where the assessee society's activities were wrongly characterized as commercial rather than charitable. The court distinguished the case from Petrotech precedent, finding that an organization formed to secure members' interests doesn't automatically make it commercial in nature. The society, established as Government of India initiative to bring hydrocarbon industry stakeholders together with consumers as ultimate beneficiaries, couldn't be labeled a lobbying agency. No evidence showed funds were used to promote individual members' business interests or procure business for members. The revision order lacked legal basis and was based on surmises beyond section 263 scope. Appeal allowed in favor of assessee. en-us Tue, 12 Nov 2024 00:00:00 +0530 Wed, 13 Nov 2024 16:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761655 ITAT Delhi held that CIT's revision u/s 263 was unsustainable where the assessee society's activities were wrongly characterized as commercial rather than charitable. The court distinguished the case from Petrotech precedent, finding that an organization formed to secure members' interests doesn't automatically make it commercial in nature. The society, established as Government of India initiative to bring hydrocarbon industry stakeholders together with consumers as ultimate beneficiaries, couldn't be labeled a lobbying agency. No evidence showed funds were used to promote individual members' business interests or procure business for members. The revision order lacked legal basis and was based on surmises beyond section 263 scope. Appeal allowed in favor of assessee. Case-Laws Income Tax Tue, 12 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761655