TaxTMI 
TaxTMI 
2020 (3) TMI 943
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....ects of artistic or historic interest and that the assessee had receipts under the heads 'Revenue from Test Laboratory' and Consultancy Receipts' which were commercial in nature and their aggregate value exceeded Rs. 10 lac." 2. At the outset, ld. counsel for the assessee submitted that, this precise issue had come up for consideration before the Tribunal in assessee's own case for the Assessment Year 2009- 10, wherein this issue has been decided in favour of the assessee. 3. The facts in brief are that assessee-society is an apex coordinating body of all Nationalized State Road Transport Corporation working under the aegis of Ministry of Road Transport and Highways, GOI. The assessee was established with the main object of improving public transport system in the country and to assist its members State Transport Undertakings by providing automobile parts at the most economical and competitive rates so that the members could run its passenger buses at economical cost. It has established a unit, named Central Institute of Road Transport at Pune in 1967 on the joint initiative with Ministry of Road Transport and Highways, Government of India with the main object to improve ....
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....um. The Tribunal in assessee's own case for the Assessment Year 2009-10, wherein the ld. Assessing Officer has passed similar order and has invoked proviso to Section 2(15) to deny the benefit has allowed the assessee's appeal after observing and holding as under:- "25. A careful consideration on above submissions at the very outset, we respectfully take guidance from the recent judgment of Hon'ble Jurisdictional High Court Delhi in the case of ICAI vs. DGIT (E) 358 ITR 91 (Delhi) wherein their lordship provided a landmark interpretation to section 2(15) of the Act as well as newly inserted proviso to this section after considering the ratio and prepositions laid down by various judgments and orders of Hon'ble Supreme Court and High Court the relevant operative part of this order at page 122 para 67 reads as under :- "67. The expressions "trade", "commerce" and "business", as occurring in the first proviso to section 2(15) of the Act, must be read in the context of the intent and purport of section 2(15) of the Act and cannot be interpreted to mean any activity which is carried on in an organized manner. The purpose and the dominant object for which an ins....
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....of the distance involved. The membership and payment of fees are mandatory and the element of voluntary contribution is missing. The association is vigorously pursuing transportation business by receiving freight charges on behalf of its members. The welfare activities adopted for the truck drivers, cleaners and mechanics of the truck owners are in the nature of staff welfare activities, as are common in other business organization which cannot be termed for general public utility." 27. In view of above, we have not hesitation of hold that the facts of the present case clearly distinguishable. We are in agreement with the contention of the Ld. AR that the facts of the present case are clearly distinguishable from this case of Truck Operators Association (Supra) as in that case the assessee association was vigorously pursuing transportation with this by receiving freight charges on behalf of its member and the so called welfare activities adopted for the Truck Drivers, cleaners, mechanics of the truck owners were in the nature of staff welfare activities which were similar and common in the other transport business organizations which could not be termed for general public ....
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.... activity in the nature of "Trade", "Commerce" or "business" or any activity of rendering certain services in relation to any "trade", "commerce" or "business" for a cess or fee or any other consideration, irrespective of the nature of the use or obligation or retention of income from such activity. Their lordship also held that the expression "trade", "commerce" or "business", as occurring in the first proviso of section 2(15) of the Act, must be read in the context of the intent in purported of Section 2(15) of the Act and cannot be interpreted to mean any activity which is carried on in an organized manner. 31. Explaining the dominant of object of newly inserted proviso to section 2(15) of the Act, speaking for Jurisdictional High Court of Delhi, their lordship also held that the first proviso to section 2(15) of the act does not purported to exclude entities which are essentially for charitable purpose but are conducting some activities for a consideration or a fee and the object of introducing first proviso is to exclude organizations which are carrying on regular business from the scope of charitable purpose. It was also held that expression "business" "trade" or "co....
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....in object of earning profit. 34. We are unable to agree with the reasoning of DGIE that there is evidence and material to show that the activity were carried out on sound and recognized business principles and persuaded with reasonable continuity then it would constitute business even if there is no profit motive as we have already noted that in assessee's own case for A.Y. 1989-90, 1990-91 and 1993-94, ASRTU vs. DDIT(E) (Supra) it was held that the aims and objects of the assessee were to render common services to members and assist them in such matters as standardization of equipment, purchase of materials for thereon use at economical prices, promotional efficiency of Road Transport Services and deduction is operational cost of member State Road Transport Undertakings are the activities of charitable purpose towards promotion of main objects set out in the Memorandum of Association of the assessee association, thus, in absence of any substantial allegation or incriminating material. We are unable to accept view of the CIT that the assessee association is conducting these activities with the main object of earning profits. In the present case, the activities of the a....