2017 (9) TMI 833

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tbr charitable purpose and public at large u/s 2(15)rws 3(8]. b By erroneously holding that the most has not spent income on the object of me trust mid that the trust is set up mainly for the benefit of their members and thereby overlooking the fact that promotion of trade & commcerce is also qualifies u's 2(1) r w s 13[81 as charitable object and also overlooking the fact that amended provisions of section 2[15] were applicable only to cover those organizations which were tide associations only for the benefit of business, By not appreciating the fact that provision of facilities of recreation, restaurants, gymnasium and sports facilities for a charge by itself does not amount to non-charitable proposes and that similar exemption was allowed in the earlier year. Without prejudice to the above and alternatively. 1 In the facts of the case mid in Law, the learned Assessing officer erred in disregarding the fact that the Appellant being a club was also eligible to be treated as mutual concern and therefore income ought to be exempted on the basis of principles of mutuality, I GENERAL This appeal is filed in time. The appellant reserves....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....esent appeal before us. ISSUE NO.1:- 6. We have heard the argument advanced by the Ld. Ld. representative of the parties and perused the record. The Ld. representative of the assessee has argued that the assessee club has been registered as charitable u/s 12A of the I.T. Act, 1961 on account of promotion of various activities and games for charitable purpose as mentioned in Circular No. 395 dated 24.09.1984 and in all the past years the club has been granted exempted u/s 11 of the I.T. Act and the status of the assessee was held as charity in nature in appeal also for the A.Y. 1996-97, 1997-98 & 1998-99. but in the present year the claim of the assessee has wrongly denied therefore the finding of the CIT(A) is wrong and against the law and fact and is liable to be set aside. It is also argued that the present case is the case of the A.Y. 2011-12 while in the case of A.Y. 2010-11 the order has been passed u/s 143(3) in which the exemption u/s 11 of the Act has been granted to the assessee but declined in the present year as well as in an another year i.e., 2012-13 wrongly and illegally without differentiating the facts, therefore, in the said circumstances the claim of the exe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ary, Higher, Commercial, technical and Industrial Education in the area of "K" Ward (i.e. Jogeshwari, Andheri And Versova areas) and elsewhere and for this purpose, to start, establish, Conduct, maintain and manage Reading Rooms, class Rooms, Swimming Pools, Libraries, Laboratories, Gymnasioums, Workshops, Publishing Houses, Hostels. Residential Quarters and the like. (c)To facilitate and spread education by starting, affiliating, established and maintaining of assisting in establishing and maintaining at "K" Ward i.e. Jogeshwari, Andheri and Versova areas of elsewhere Schools, Colleges and Academics for imparting Primary, Secondary and Higher industrial or other education with a view to train up ideal citizens." 8. Now, it is to be seen whether the case of the assessee falls within the purview of exception of the Section 2(15) of the Act or not. The said amendment came in existence under finance Act, 2008 by adding a proviso which states that the advancement of any other object of general public utility charitable shall not be a charitable purpose if it involves the carrying on of any activity in the nature of trade, commerce and business or any activity of rendering a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e I.T. Act. Even a single instance is not on the file which may describe this fact that the assessee has been involved in the trade, business and commerce.In this regard we also find support of law settled in :- 1. Calcutta Cricket & Footbal Club Vs. Ito Exemption In ITA. Nos 466/Kol/2016 dated 05.08.2016 for A.Y. 2011-12 2. Navi Mumbai Gymkhana ITAT Mumbai ITA No. 196/Mum/2013 dated 21.05.2014 for A.Y. 2009-10. 3. Chembur Gymkhana Mumbai ITAT ITA Nos. 3033/Mum/2015 Dated 08.03.2017 for A.Y. 2010-11. 10. It is also came into notice that the revenue allowed the claim of the assessee in the earlier years and also allowed the claim of the assessee for the A.Y. 2010-11 u/s 143(3) of the I.T. Act, 1961.There is no factual change in the activity of assessee in the current year. Taking into account of all the facts and circumstances of the case, we are of the view that the claim of the assessee has wrongly declined, therefore, the finding of the CIT(A) is wrong and against law and facts and is not liable to be sustainable. Accordingly, we set aside the finding of the CIT(A) on these issues and allowed the claim of the assessee. 11. In the result, appeal fi....