TaxTMI 
TaxTMI 
2018 (8) TMI 970
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.... and in law, the Ld. CIT(A) has erred in ignoring that commercial activities of the assessee which are squarely covered under the last limb of proviso to section 2(15) of the Act, as the assessee is providing hostel services by letting out A/C rooms and by providing other facilities and luxuries to the visitors. Thus, the benefit of section 11 & 12 are not allowable to the assessee. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that though the objects of the assessee may seem to be charitable but activities carried out by the society which yielded income to the society are commercial in nature. 3. That the appellant craves to be allowed to add any fresh groun....
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.... is not involved in any trade, commerce or business. It is submitted that mere receipt of fees from students for the education, fees from the hostels, interest income or receipt of rental income cannot be said that the assessee is involved in any business activity. It is also submitted that during the A.Y 2010-11, the AO had denied the exemption to the assessee but the Ld. CIT (A)-XXI, New Delhi(old) has allowed the exemption u/s 11(1) vide the appellate order dated 27/06/2014. 4.2 1 have considered the order of the AO and the submissions of the assessee and 1 find considerable merit in the submissions of the assessee that the assessee is a charitable non-profit organization and mere receipt of fees and rents etc. cannot be said th....
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....though the Ld. Sr. DR has vehemently argued against the order of Ld. CIT (A) in directing the AO to allow the benefit of exemption to the assessee with all the consequential benefits, we find that the case is squarely covered in favour of the assessee by order of the ITAT in assessee's own case for assessment year 2012-13 wherein a similar direction by the Ld. CIT(A) was upheld by the coordinate bench of this Tribunal. We also find that the assessee has been allowed the benefit of exemption by the Tribunal in assessment years 1989-90, 1990-91, 1991- 92, 1992-93, 1993-94, 1997-98, 2010-11 and 2012-13. Although, the department has argued vehemently against the action of the Ld. CIT (A) in directing the allowance of exemption, no material evid....
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.... order in AY 1992-93 became final where it was held by the CIT(A) that the Appellant was entitled to exemption u/s 11 0f the Act and the provisions of Section 11 (4)(A) of the Act were not applicable to the case. There-after in AY 1997-98 the Assessing Officer himself in the assessment order dated 11.01.2000 conferred charitable status to the assessee by applying Section 11 of the Act. While fees may be charged and there may even to be a surplus out of charitable activities, the principle that so long as the surplus funds are redeployed in charitable activities no objection can be taken as to the charitable pursuits is in exceptionable. This has been so held by the apex court in Thiagarajar Charities vs. Addl CIT (1997) 225 ITR 1010 (SC). ....
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.... been decided in favour of the assessee and against the department. The relevant findings given therein read as under: "The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) which upheld the order of the Appellate Commissioner who granted relief to the assessee. The assessee claimed the benefit of Section 11 and 12 of the Income Tax Act, 1961 (hereafter referred to as „the Act‟) on the ground that it was a charitable organization. The Assessing Officer (AO) brought to tax receipts on the ground that they were real income having regard to the nature of activity for which the payments were made. The CIT(A) and the ITAT relied upon several judgments including the ruling in India Trade Promotion O....