2018 (4) TMI 1576

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.... assessment year 2010-11 and is preferred against order dated 27.6.2014 passed by the Ld. CIT (Appeals) -XXI, New Delhi. CO. No. 103/Del/2005 is the CO filed by the assessee for assessment year 2009-10. Since both the appeals and the CO involved identical issues they were heard together and are being disposed of by this consolidated order. 2. The Ld. AR submitted that under instruction from the assessee he was not pressing the assessee's CO captioned 103/Del/2015. Accordingly, the assessee's CO is dismissed as not pressed. 3. The Ld. AR further submitted that ground Nos. 1 and 2 in both the appeals were identical and they were covered in favour of the assessee in assessee's own case by the order of ITAT Delhi Bench for assessment year 201....

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....vided in law. The Ld. Sr. DR prayed that the orders of the Ld. CIT (A) in both the years under consideration should be reversed and the orders of the AO be restored. 5. We have heard the rival submissions and have perused the record. The facts in this case are undisputed. The assessee is an association registered under the Societies Registration Act, 1860 and also u/s 12AA (1) of the Income Tax Act, 1961 ('The Act') since July 1974 and has the basic objectives as promotion of spiritual, intellectual and physical and social interest of people specially the youth within the territorial jurisdiction of the Association irrespective of their caste colour and creed. The Association is authorised to cooperate and/or associate with any other assoc....

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....able so as to enjoy the benefit of registration u/s 12A of the Act. The AO concluded that the activities of the Association included hostel services, miscellaneous income etc. which indicated that the activities of the assessee were commercial in nature and, therefore, the Association was not wholly or solely working for the purpose of charity. However, when the matter reached the Ld. CIT (Appeals), the Ld. CIT (A) held that the assessee is a charitable and non-profit organisation and further that he did not find that any of the activities of the assessee fell within the realm of trade, commerce or business. The Ld. CIT (A) directed the AO to allow the benefit of exemption u/s 11 (1) of the Act. 5.2 Although the Ld. Sr. DR has vehemently a....

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....sed was that the CIT (A) had erred in allowing the benefit of Section 11 of the Act by holding that the activities of the Society were charitable though the Assessing Officer had rightly applied the provisions of Section 11 (4 )(A) of the Act by holding the same as business activity. In AY 1993-94 once again the departmental appeal was dismissed by the Tribunal. Where the point in issue was that the CIT(A) erred in allowing the benefit u/s 11 of the Act by holding that the activities of the Society were chargeable(sic) although the Assessing Officer had rightly applied the provisions of Section 11 (4)(A) of the Act by holding the same as business activity. It seems that the CIT(A)'s first appeal order in AY 1992-93 became final where it....