2018 (9) TMI 770

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....the Ld. CIT(A) has erred in holding that the assessee society is a charitable organization despite the fact that the assessee society was doing business within the meaning of amended provisions of section 2(15) of the Income Tax Act, 1961." 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs. 72,78,575/- made on account of bank interest being not covered under principle of mutuality in view of the Judgment of Hon'ble Supreme Court in the case of Bangalore Club Vs CIT 350 ITR 509 (SC)." 2. The facts in brief and the background of the case are that the assessee society was registered under the Societies Registration Act, 1860 on 21.10.1987 and was also registered u/s. 12AA....

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....urt after vide the common order dated 12/10/2011 for various assessment years. The Assessing Officer had denied exemption u/s. 11(1) in the Assessment year 2008-09 & 2009-10. However, the same was allowed by learned CIT(A) and later on by the Tribunal vide order dated 17.02.2012 in the Assessment Year 2008-09 and Departmental Appeal for the Assessment Year 2009-10 still pending before the ITAT. Later on, learned CIT(E) had cancelled the exemption for Assessment Year 2009-10 but again the order of the learned CIT(E) has been set aside by the Tribunal vide order dated 12.02.2015 in ITA No.3017/Del/2014. 3. Assessing Officer in the impugned assessment order has noted the primary aims and objects of the assessee and noted that some of the act....

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....he entire details of receipts and also the application of income and the surplus of receipts over expenses were Rs. 1.1 crore including that of interest and since such a surplus was within the limit of section 11 and that is why assessee had filed return of income at 'Nil'. He further submitted that now there are catena of decisions wherein the scope of proviso to Section 2(15) has been discussed in detail which has been followed by the Tribunal in assessee's own case in the earlier year. Thus following the earlier year precedence, order of the learned CIT(A) should be confirmed. 6. On the other hand, learned DR had tried to distinguish the judgment of Hon'ble Delhi High Court in the case of India Trade Promotion (supra) and submitted ....