2018 (4) TMI 643

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.... exemption U/s.11(l)(a) and S. 11(2) by applying proviso to section 2(15) without appreciating that proviso to S. 2(15) is not applicable to Assessee and its activities and hence the order of learned Assessing officer deserves to be quashed. The learned CIT(A) erred in confirming order of Ld Assessing Officer including Rs. 4,50,000/- being life membership subscription as income of the assessee without appreciating that the said receipt is capital in nature not liable to tax. The learned CIT(A) erred in confirming order of learned Assessing Officer including Rs. 11,78,996/- being subscription received under Post Graduate Scholarship programme as income of the assessee without appreciating that that the said receipt is capit....

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....ssessing Officer in both the assessment years denied exemption u/s.11 by invoking provisions of Section 2(15) on the ground that activities of assessee are in the nature of trade and commerce. 7. By the impugned order, CIT(A) confirmed the action of the AO. 8. It was contended by learned AR that assessee carries on its activities without any profit motive and for charitable purposes reliance was placed on the following cases wherein it has been held that where activities are without profit motive, proviso to S.2(15) cannot apply : (i) India Trade Promotion Organisation v DGIT(E) [2015] 371 ITR 333 (Delhi) If dominant and prime objective of institution, was not desire to earn profits but, object of promoting trade and....

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....generated from such activities. (iv) Deputy Commissioner of Income-tax, Circle-6 (1), Mohali v.Semi Conductor Laboratory, Deptt. of Space, Govt. of India [2016] 70 taxmann.com 223 (Chandigarh - Trib.) Since assessee was not driven by profit motive, case of assessee was not hit by proviso to section 2(15) and, therefore, assessee would be eligible for exemption under section 11. (v) Deputy Director of Income-tax (Exemptions-IV) v. Council For - Leather Exports [2015] 41 ITR(T) 697 (Chennai - Trib.) Assessee received member subscription, certification fee, sale of . publications, interest on deposits, bulletin revenue, etc. It was held that where an institution is not driven primarily by a desire or motive to earn profits bu....

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....shed in 1966 for charitable purpose and registered under the Securities Registration Act, 1860. Assessee institute was established by the Ministry of Commerce and Industry, Government of India and accordingly Directorate General, Indian Institute of Foreign Trade, New Delhi and Joint Secretary^ Ministry of Commerce are the Signatories to the Memorandum of Association of assessee. Further as per the rules and regulation of the assessee, the governing body includes ten persons nominated by the Central Government. Hence assessee is an arm / wing / body of the Central Government functioning under the overall and administrative control of the Central Government. Further, Annual Accounts are laid before the parliament and their inspection is done....