TaxTMI 
TaxTMI 
2019 (11) TMI 1036
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.... CIT(A) has erred in ignoring the fact that the activities of the assessee involved rendering of services in relation to carrying on of a commerce or business and hence, proviso to Section 2(15) is clearly applicable in case of the assessee. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing the AO to allow the exemption u/s 11 of the Act without appreciating the fact that assessee cannot be treated to be engaged in a charitable activities and hence, the AO has rightly denied the exemption. 3. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing. 2. Briefly stated facts of the case as culled out from the order of the lower au....
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....chnologies and their application in the field, assist development agencies, to do planning and information of development projects, to assist development agencies and funding various organization and in view of the services rendered, the assessee receives fees from its clients. He invited our attention to the fact that tax was also deducted at source on grants received by the assessee. He submitted that the assessee falls under the sixth limb of 'advancement of object of general public utility' and is engaged in rendering services in relation to carrying on trade or commerce or business against a sum of fee received and thus the proviso to section 2(15) get attracted in the case of assessee. Further, he referred to para 4.6 of the order of ....
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....tlements and their participation in local governance structure. The Ld. counsel referred to CBDT Circular No. 11/2008, dated 19/12/2008 and highlighted that the relief to the poor include welfare of the economically and socially disadvantaged or needy. According to him, the activities of the assessee being in furtherance to the cause of disadvantaged women or children or a small and marginal farmers etc. same falls under the charitable activity of 'relief to poor'. 5. The Ld. counsel submitted that even the proviso to section 2(15) is not applicable as no extra fee has been charged for implementing the project work of various agencies. He further submitted that even in case of entities engaged in advancement of object of general public ut....
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....ion 11(1) of the Act as there is no change in the facts in the year under consideration as compared to assessment year 2009-10 and 2010-11. In support of the contention of the rule of consistency, the Ld. counsel relied on the decision of the Hon'ble Supreme Court in the case of Radhasoami Satsang versus CIT (1992) 193 ITR 321 (SC). 7. We have heard rival submission of the parties and perused relevant material on record, including paper-book filed by the assessee. According to the Assessing Officer, the activity of the assessee falls under "advancement of general public utility" , and the assessee being engaged in business of providing services against fee, the activity is out of domain of charitable purpose in view of the proviso to sect....
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....ed the issue in favour of the assessee observing as under: "4.4 I have considered the order of the AO and the submissions of the assessee and I find considerable merit in the submissions of the assessee that the mischief of Proviso of section 2(15) is not apparently applicable as. the assessee is not involved in any trade, commerce or business. The assessee is very much a charitable society and is working for the welfare of the poor and rural people and is very much eligible for exemption u/s 11(1) and the AO has not made out any specific case to show that the assessee is involved in any trade, commerce or business. 4.5 Recently the Hon'ble Delhi High Court in the case of India Trade Promotion Organization vs. DGIT(E), 53 Taxmann.....