AI Drafter 
TaxTMI 
TaxTMI 
2019 (9) TMI 761
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.... consolidated order for sake of convenience and to avoid repetition of factual information. The grounds of appeal raised in ITA No. 1422/12/2014 for assessment year 2009-10 are reproduced as under: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the activities of the assessees are charitable in nature and not in the nature of trade, business or commerce as the assessee is providing consultancy in the form of exhibition of project or carrying out any research or any survey or carrying out any consultancy work for the fee to be charged. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has wrongly applied the ratio of judgment of Hon'ble Delhi High Court delivered in the case of ICAI Vs. DGIT(E), 347 ITR 99 (Delhi)-2012 and allowing the relief to the assessee, ignoring that the facts of the case are entirely different. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in accepting the argument of the assessee that the advanced or unspent amount received for ongoing research and project work is not chargeable to tax within the pr....
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.... It also maintains a well endowed library with precious data that attracts National and International Scholars including the Late Kennedy Junior. The Institution is supported by the Financial Grants from the ICSSR and Ministry of External Affairs. The Institution is duly registered under Foreign Contributions Regulations Act 1973 and is duly supported by Endowment Grant from Ford Foundation. The Institution conducts research surveys, projects and specialized assignments in the field of Elections, Politics and Democracy which are life line of any Democracy. 9. It is also submitted by the assessee that carrying out specialized research projects does not amount to carrying on trade, commerce or business. Research activities are not trade ,commerce or business activities but simply research activities. And all these Research activities are being carried out as per the objects of the Institution. 10. The expertise of the Assessee institution in carrying out research was utilized and therefore it cannot constitute trade, commerce or business activity. The aforesaid projects undertaken is not a regular activity of the assessee institution. Primary activity remai....
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....ee filed return of income on 30/09/2009, declaring Nil income. The case of the assessee was selected for scrutiny and notice under section 143(2) of the Act was issued and complied with. The assessee furnished details of grant received from different organization including foreign grants. The Assessing Officer noted the objects and activities of the assessee society and observed that the assessee is a research-based organization carrying on research on various issues and providing consultancy on the issues as desired by their clients. The Assessing Officer held that the assessee was engaged in activities being "advancement of any other object of general public utility" in the nature of commercial and consultancy. According to the Assessing Officer in view of the proviso 2(15) of the Act introduced w.e.f. assessment year 2009- 10, the advancement of any other object of general public utility shall not be charitable, if it involves the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering service in relation to trade, commerce or business, for a cess or fee or any other consideration. Accordingly, the Assessing Officer disallowed exempt....
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.... proviso reads as under: "Definitions. 2. In this Act, unless the context otherwise requires,- (15) "charitable purpose" includes relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity, unless- (i) such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and (ii) the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or instit....
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.... the cost incurred by the assessee. The coordinate bench of Tribunal in the case of Himachal Pradesh Environment Protection & Pollution Control Board vs. CIT (2009) 125 TTJ (Chd) 98 in para 3 in relation to the applicability of the proviso to section 2(15) has held as under: "3. The assessee submitted before the learned CIT (Appeals) that the I.T.A.T., Chandigarh Bench has already decided the appeal of the assessee in ITA No.74/Chd/2009 wherein registration has been restored. Therefore, the assessee is entitled for deduction under sections 11 and 12 of the Act. The submissions on merits were also made. The learned CIT (Appeals) following the order of the Tribunal in ITA No.74/Chd/2009 decided the issue in favour of the assessee and held that the assessee would be treated as registered under section 12AA of the Act. 4. After hearing the rival submissions we do not find any merit in the appeal of the Revenue. The Revenue has raised only ground that the learned CIT (Appeals) has allowed registration under section 12AA of the Act. This issue has already been considered in detail by I.T.A.T., Chandigarh Bench in the case of the assessee in ITA No.74/Chd/2009, agains....