TaxTMI 
TaxTMI 
2017 (1) TMI 887
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....s and in the circumstances of the case and in law, the ld. CIT(A)-3, Jaipur has erred in allowing the exemption U/s 11 and 12 of the Act by holding that the activities of the appellant authority are charitable even though receipt of rent, which is predominant activity, exceeded the prescribed limit of Rs. 25 lacs and hit by the amended provisions of Section 13(8) r.w. 1st and 2nd proviso of Section 2(15) of the Act. B. Any other question of law as deemed fit in the facts and circumstances of the case may also been framed before the Hon'ble Tribunal in the interest of justice." 2. Both the appeals are being heard together, therefore, for the sake of convenience and brevity, a common order is being passed. 3. Firstly we take IT....
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....e authorities below. It is undisputed fact that the ld. CIT(A) has decided the issue under consideration by following the decision of the Coordinate Bench passed in assessee's own case for the A.Y. 2010-11. the ld. CIT(A) has observed as under:- "4.3 I have carefully considered the facts of the case, findings of the A.O. and submission of the appellant. It is pertinent to mention that in the case of appellant itself in A.Y. 2010-11, similar action was made by A.O. and after considering the objects and activity of appellant, ld. CIT(A) vide orders dated 01/08/2013 allowed the exemption available U/s 11 and 12 of the Act. These facts were submitted before A.O. during the assessment proceedings which were not accepted since department....
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.... his order as under:- " 4. I have considered submissions of the appellant and have also gone through the assessment order. It is seen that the AO has disallowed the exemption on the ground that maintaining of Dharamshala was an activity of advancement of general public utility and was, therefore, hit by the amended provisions of section 2(15) as its receipts exceeded the maximum limit of Rs. 10 lacs as mentioned in the proviso. 4.1 It is, however, noticed that the first and second proviso to section 2(15) come into play only when the activity being carried out by the assessee is in the nature "trade, commerce or business". This is also obvious from CBDT's Circular No. 11 of 2008 dated 19.12.2008 which explains the rational....
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....ricted to contributions from and participation of only their members, these would not fall under the purview of the proviso to section 2(15) owing to the principle of mutuality. However, if such organizations have dealings with non-members, their claim to be charitable organizations would now be governed by the additional conditions stipulated in the proviso to section 2(15). In the final analysis, however, whether the assessee has for its object 'the advancement of any other object of general public utility' is a question of fact. If such assessee is engaged in any activity in the nature of trade, commerce or business or renders any service in relation to trade, commerce or business, it would not be entitled to claim that its obje....
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....y all the assets shall go to the State Government. Apart from this, it may also be noted that the terms of the society clearly provide that all the moveable and immovable property, in resent or in future, shall belong to the society and all the savings of income and expenditure account shall be utilized for the developmental work of the society. Clause 4(c) of the Society's constitution reads as under:- Hence, there does not appear to be any profit motive in the case of the assessee as the excess of income over expenditure cannot be distributed amongst its members either in the course of its activity or in the event of its dissolution. Therefore, one of the important ingredients for treating the activity of the appellant as busines....
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....nces by respectfully following the order of the Hon'ble ITAT in assessee's own case and considering the reasons stated above, the A.O. is, accordingly, directed to assess the society as per the provisions of Section 11 and 12 and grant the requisite exemption." From the above, it is evident that the ld. CIT(A) has followed the decision of the Coordinate Bench passed in assessee's own case in ITA No. 809/JP/2013. The facts and identical and there is no change into the facts and circumstances of the case, therefore by taking a consistent view, we are hereby upheld the order of the ld. CIT(A). Accordingly, the ground raised by the revenue in appeal is dismissed. 8. Now we take ITA No. 902/JP/2016 for the A.Y. 2013-14. In this year als....