TaxTMI 
TaxTMI 
2019 (5) TMI 620
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.... and expenditure for the year ended on 31st March, 2011 after rejecting the claim of exemption u/s 11 of the Act. Such denial of exemption u/s 11 of the Act was done by the Learned AO by resorting to Section 13(8) of the Act through application of proviso to section 2(15) of the Act by treating the appellant's activity of hosting exhibition as in the nature of trade/ commerce with profit motive; applying proviso to section 2(15) of the Act denied the exemption u/s 11 of the Act. The purpose of the trust is to project an appropriate and progressive image of trade and industries, to promote development and co-ordinate multi-faceted growth of trade and industries, help and promote R & D activities, standardization, quality control and testing facilities. During the year under consideration, the appellant conducted a Trade Exhibition which generated receipts of Rs. 2,72,77,989/-. The assessee incurred huge expenditure to the tune of Rs. 2,03,62,443/- resulted into surplus of Rs. 69,15,546/-. The assessee has not charged any fees or Cess for carrying out the trade exhibition. Further that, the stall rent and entry fees have been charged just in order to meet the cost incurred in orga....
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....peal, the Learned Counsel appearing for the assessee submitted before us that the objects of the appellant society registered under the Societies Registration Act, 1961 as also registered u/s 12AA of the Act includes conducting and/or undertaking and/or participating in national/regional exhibitions and to organize industrial exhibitions, conferences and seminars from time to time to create awareness and to focus the issues affecting trade, commerce and industry and economical development of the country. The object of the society was duly made known to the authorities below by way of written submission by the appellant. It was further argued that the said object was duly verified and accepted by the appropriate authority while granting registration u/s 12AA of the Act fact of which was not considered by the authorities below and ultimately the assessee was denied the claim u/s 11 of the Act on the count that the assessee had charged certain fees from the participants of the trade exhibition, thus the revenue has came to a conclusion that the appellant was engaged in the activities in the nature of trade and commerce. It was further pointed out by the Learned Counsel that the appell....
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....workers and businessmen. 4. To increase the knowledge of its members on the subjects of business and economic affairs by collecting relevant information and provide such information to its members on the subjects of business and economic affairs by collecting relevant information and provide such information to its members and if necessary to the Government and other institutions. 5. To arrange for training and education of workmen, businessmen and industrialist. 6. To establish and manage educational, medical, cultural and welfare institutions for the benefit and growth of the society. 7. To take all steps to suggest changes or provide support or oppose according to necessity of any legislative, administrative or such other measures of government, Semi-Government, Local or any other public authority in the interest of the business and industry. 8. To conduct, undertake and participate in national / regional exhibitions and to organize industrial exhibitions, conferences and seminars from time to time to create awareness and to focus the issues affecting trade, commerce and industry and economical development of the country. 9. ....
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....ustries and members of association and distribute them at suitable rates. 22. To contribute to the cause of rehabilitation of victims of natural calamities. 23. To represent the association to the committees constituted by the Government / Semi Government and such other authorities and bring solutions to the problems of business / industries. 24. To enter into an agreement with the Central or State Government, local authorities, etc. that may seem conductive to the objectives of the Association and to obtain from any such government or authorities all rights, concessions & privileges. 25. To do such acts to fulfill the aims & objectives and related issues thereon subject to provisions of the Bombay Public Trust Act, 1950 and the Registration of Societies Act, 1960 and such acts and rules prevailing at that time." Thus to conduct / undertake and participate in national/regional exhibitions and to organize industrial exhibitions, conferences and seminars from time to time to create awareness and to focus the issues affecting trade, commerce and industry and economical development of the country is one of the main object of the registered society....
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.... applicable legal position. 5. Learned Representatives fairly agree, even as learned Departmental Representative vehemently relies on and justifies the stand of the authorities below, that the issue is covered, in favour of the assessee by a co-ordinate bench's decision in the ITA No.2891/Ahd/2014 Assessment Year: 2010-11 case of Heart Care Management vs. DIT (Exemptions) [(2012) 52 SOT 277 (Delhi)] wherein the co-ordinate bench has, inter alia, observed as follows :- "We have heard rival contentions and gone through the relevant material available on record. As the facts emerge, the assessee is a registered society with specified objects, as mentioned herein above. The objects are mainly towards medical research, experiments workshops etc. in the field of medical sciences in general and heart ailments in particular and take in their fold the ways and means for affordable medical relief. The objects include holding of scientific meetings, workshops, research and training programs and create public awareness, lecture programs among doctors and the general public. 5.1. A plain reading of the objects does not reflect that any object is non- charitable in nature. ....