TaxTMI 
TaxTMI 
2020 (8) TMI 721
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.... 3. On the basis of facts and circumstances of the case and in law, Ld. CIT(A) has erred in deleting the additions of Rs. 5,21,54,651/- by directing the AO to allow the exemption u/s 11 with all consequential benefits and also allowing the amount of Rs. 67,90,978/- accumulated under section 11(2). 4. On the basis of facts and circumstances of the case and in law, the Ld. CIT (A) has erred in holding that the activities of the assessee are charitable in nature and that assessee is eligible for exemption u/s. 11 of the I.T. Act, 1961 by ignoring the fact that principle of mutuality is not applicable in case of the assessee as the contributions by members over & above Rs. 50,000/- become beneficiaries as per Section 13(3)(b) of the Act, 1961. 5. On the basis of facts and circumstances of the case and in law, the Ld. CIT (A) has erred in considering the assessee's ground that Ld. AO wrongly referred to the provisions of section 13(1) & 13(2) of the Income Tax Act." 2. Briefly the facts of the case are that return of income declaring NIL income was filed. The assessee is a society registered under section 12A of the I.T. Act, 1961. The objective....
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....ges 37 and 38 of the Order is reproduced as under : "4.1.4. The case of the assessee is covered in the favour of the assessee by the orders of my Id. predecessors for the assessment years 2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011- 12 and 2012-13 by my own orders for assessment year 2013-14 and also by the orders of Hon'ble Delhi High Court in the assessee's own case for the assessment years 2006-07 & 2007-08 in ITA No.321/2016 an 355/2016. The departmental appeal for the assessment years 2008-09 & 2009-10 has been also dismissed by the Hon'ble Tribunal (supra) as also by the Hon'ble Delhi High Court in ITA.No.321/2016 and 355/2016 vide order dated 22.07.2016. 4.1.5. Since the facts and circumstances of the case are same as in earlier years, respectively following the decisions of the Hon'ble ITAT Delhi in appellant's own case for assessment years 2008-09 and 2009-10 and the Hon'ble Delhi High Court for assessment years 2006-07 and 2007-08. The Assessing Officer is directed to allow exemption under section 11 with all consequential benefits. As regards the issue of denial of exemption under section 13(1) and 13(2), I have conside....
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....f. A.Y. 2009-10 in case of general public utilities and they will no longer be enjoying charitable status if they are involved in carrying on of activities in the nature of trade, commerce or business or any activity rendering any service in addition to any trade, commerce or business for cess or fee or any other consideration in respect of nature of use or application or retention of income from such activity. He noted that the assessee society falls in the last category of general public utility as per the definition of section 2(15) and, in view of the above amendment, the society falls under the last category i.e., 'advancement of any other object of general public utility' and, therefore, is not entitled to carry on any business or commercial activities even if it is incidental to charitable purposes. He further noted that many members have been contributing more than Rs. 50,000/- as membership fee and they all become beneficiary as per section 13(3)(b) of the IT Act and since the assessee is working for the interest of its members and a substantial number consists of members who have contributed more than Rs. 50,000/-, he held that they all are beneficiaries and the chamber i....
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....3rd May, 2018 at para 7 of the order upheld the order of the CIT(A) in allowing claim of exemption u/s 11 of the IT Act and dismissed the appeal filed by the Revenue by observing as under:- "7. The only issue for denying the exemption u/s.11 by the learned Assessing Officer is that in terms of proviso to Section 2(15) the assessee's activities are in the nature of trade and commerce or business. We find that first of all in the Assessment Years 2006-07 & 2007-08, the Hon'ble High Court after detailed discussion had held that assessee is eligible for claim of exemption u/s.11, vide judgment and order dated 19th October, 2012 in ITA No.368 & 369/2012. Again for the Assessment Years 2008-09 and 2009-10, the Revenue's appeal has been dismissed vide judgment and order dated 22nd July, 2016 passed in ITA no. 321 and 355/2016. In the Assessment Years 2008-09 and 2009-10, the Tribunal has taken into note the scope of proviso to Section 2(15) and following the judgment of Hon'ble Jurisdictional High Court in the case of India Trade Promotion Organization vs. DGIT (E), held that none of the activities of the assessee falls in the category as envisaged in the proviso.....
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....find any infirmity, perversity or illegality in the order passed by the Ld. CIT (A), hence, the appeal of the Revenue-Department stands dismissed." 8. We find, the Tribunal, vide ITA No.5408/Del/2015, order dated 6th September, 2017, has upheld the order of the CIT(A) in allowing exemption u/s 11 and dismissed the appeal of the Revenue by observing as under:- "6. We have heard both the parties and perused the records, especially the impugned order. We find that Ld. CIT(A) has observed that the assessee is an association of professional and businessman to protect and promote the interest of its members. The income of the assessee is from membership fees from its members, specialized services, services and facilities, meetings, seminars and training programmes, sale of publication etc. It is also noted that the income of the assessee from other nonmembers of the institution are more and as such the principle of mutuality is apparently not applicable in the case of the assessee. We further note that the case of the assessee is covered in its favour by the orders of the Ld. CIT(A)'s predecessors for the Assessment years 2006-07 to 2011-12 and also by the order of ....