2019 (8) TMI 1794

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.... "On the facts and in the circumstances of the case and in law, Ld. CIT (A) has erred in allowing the appeal of the assessee by ignoring the fact that though the objects of the assessee seems to be charitable in nature but the activities carried out by the assessee, which resulted in income, are commercial in nature." 2. Brief facts of the case are that the assessee is a charitable society registered under the Societies Registration Act, 1860 vide order dated 23.09.1971. Assessee has also registered u/s 12AA(1) of the Income-tax Act, 1961 ("the Act") on 12.02.1997. The assessee is running a charitable hospital at Vasant Kunj, New Delhi in the name of Flt. Lt. Rajan Dhall Charitable Trust, which provides medical relief to the gene....

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....h of this Tribunal in the case of M/s Devki Devi Foundation, ITA No.1027/Del/2012 dated 31.3.2015, the benefit of Section 11 & 12 should not have been allowed to the assessee. 6. It is the argument of the learned DR that in the assessment order Ld. AO enumerated the reasons for disallowing the claim of the assessee u/s 11(1) of the Act and more particularly, the fact that the assessee is getting rental income and Fortis Hospital has paid an amount of Rs. 35 crores to Vaitalik on behalf of the assessee society. She specifically brought to our attention para 7 (iii) of the assessment order which states that the assessee has entered into an agreement by which if the plan of share of surplus has not been fulfilled, assessee will be liable to....

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....essment order are nothing new but have been in place since its inception, as such, merely because some activities are recorded in the assessment order for some years and some activities are recorded in some other year, does not convert the charitable nature of the assessee into a commercial entity and as a matter of fact, considering all these factors only both the AO and the first appellate authority have allowed exemption u/s 11(1) of the Act of which assessee right from the year 2007-08 to 2014-15. Learned AR submitted that learned CIT(A) has rightly followed the rule of consistency and the appeal of the revenue is devoid of merits. He further submitted that the order of the Tribunal in M/s Devki Foundation, ITA No.1027/Del/2012 dated 31....

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....nd batch by order dated 21.8.2017. For the Asstt. years 2013-14 and 2014-15, AO himself allowed such an exemption by orders dated 29.2.2016 and 22.12.2016. It is also evident that from the order dated 05.11.2018 in ITA No. 2649/Del/2015 for AY 2011-12, coordinate Bench of this Tribunal granted relief to the assessee. 10. When the facts remained identical, it is not open for us to take a different view in the absence of any compelling reasons to do so. Further, the decision in the case of Devki Devi Foundation vs DCIT (supra) rendered by a coordinate bench of this Tribunal dated 31.3.2015, was in appeal before the Hon'ble jurisdictional High Court in ITA No. 484/2015 and by order dated 15.2.2016, the Hon'ble jurisdictional High Court set ....