TaxTMI 
TaxTMI 
2020 (8) TMI 362
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed license under Section 25 of the erstwhile Companies Act, 1956(Section 8 of the Companies Act, 2013) as a non-profit entity, under the membership of National Council of Science Museum (NCSM) an autonomous body, formed under the Ministry of Culture, (Govt. of India), is registered under Section 12(A) of the Act vide order No. DIT(E)/388/2012-13/C-223/3482-84 dated 04.03.2013. The assessee engaged in the particular activities of taking up all kinds of museum/science centre projects on turnkey basis, filed its return of income for Assessment Year 2013-14 on 30.09.2013 declaring income at nil. During the course of assessment proceeding, upon perusal of the documents furnished by the assessee, particularly the audited accounts, it revealed that the assessee received an amount of Rs. 1,06,30,400/-as sale of services. It was further found that different organizations had deducted tax at source under Section 194J of the Act while making payment to the assessee. Further that, the assessee had booked amount received from RBI in its revenue. Upon further examination of the matters, it was found that the assessee decided to set up a museum in the premises belongs to Reserve Bank of India at....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l/ 2016, in the matter of M/s Credai Bengal - vs. - CIT(Exemption), Kolkata. A copy of each of the judgment passed by the Coordinate Bench have been annexed to the paper book filed before us. 5. On the other hand the Learned Departmental Representative submitted before us that the activities of the assessee were performed out of the contract being an agreement entered into between the assessee and the Reserve Bank of India. He further reiterated that no charitable element is reflecting in the activities of the assessee and therefore the Learned Departmental Representative relies upon the order passed by the authorities below in rejecting the claim of exemption of the assessee available under Section 11 of the Act. 6. We have heard the rival submissions of the respective parties, we have also perused the relevant materials available on record including the judgments relied upon by the Learned AR. 7. The short point involved in this particular case is this as to whether the activities of the assessee in the year under consideration is coming under the purview of its claim u/s 11 of the Act or it is within the periphery of the last limb of the First proviso of Section 2(15) of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cations." From the other terms and condition, as appearing therein, it could be it gathered, that the RBI is actually incurring the expenditure to set up the said museum and the assessee is to execute such work as dictated by the RBI as a contractor in lieu of money and then leave. No further assignment has been given on the appellant by the RBI in this regard as it evident from the said letter under reference. Needless to mention that the appellant is working as an agent deputed by RBI. Further that it would not be out of place to mention that the price bid proposed by the assessee connotes some sort of profit element which is why the RBI authority kept it pending further, negotiation. Apart from that we would also like to reproduce the following relevant clauses of the Memorandum of Association filed by the assessee as on record before us appearing at page 13 to 18 of the paper book: Memorandum of Article of Association 4. To apply for tender, purchase or otherwise acquire any contract and concessions for or in relation to the construction, execution, carrying out, equipment, improvement, management, administration, or control or works and conveniences and to undertake, ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es and to carry on business which may seem capable of carrying conveniently the business or objects of this Company and to acquire any interest in any industry or undertaking. 16. To borrow or raise money or to receive money on deposit at interest or otherwise for purpose of financing the business of the company in such manner as the company may think fit, and in particular by the issue of debenture stock, perpetual or otherwise, including debenture or debenture stock convertible into shares of this company, perpetual annuities; and in security of any such money so borrowed, raised or received, to mortgage, pledge or change the whole or any part of the property, assets or revenue of the company present or future, including its uncalled capital by assignment or otherwise or to transfer or convey the same absolutely or in trust and to purchase, redeem or pay off any such securities. It appears that those above mentioned clauses are indicative enough to profit oriented intent; such indication is further being confirmed by the assessee's activities as done by it in the year under consideration as already narrated hereinbefore. Assuming the activities of the appellant is for advance....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2014. The said organization was an association of various industrialists formed for development of trade, industry and commerce having operation all over the country and abroad. It was set up for the purpose of protection of Indian business and registered under Section 12A of the Act as 'Charitable Association'. It is a fact that if the primary purpose of an institution was advancing of object of general public utility, it would remain charitable even if an incidental on or ancillary activity or purpose for achieving the main purpose was profitable in nature which was the observation made by the Apex Court as well as in the said order as relied upon by the ld. AR. We have also further considered the judgment of Co-ordinate Bench of Kolkata Tribunal in the case of M/s Credai Bengal vs. CIT(E) in ITA No. 381/Kol/2016 for A.Y. 2011-12 dated 30.09.2016. In this particular matter the fact relates to expenses incurred to organize fair outside India where it was held by the Hon'ble Tribunal that where assessee's object of promotion of construction industry in India had been accepted by the revenue for granting registration under section 12 AA merely because the assessee held fairs in In....