TaxTMI 
TaxTMI 
2021 (10) TMI 1332
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.... raised in ground No.1 & 2 is against the order of Ld. CIT(A) upholding the order of AO whereby the AO has denied exemption under section 11 of the Act on the ground that proviso to section 2(15) of the Act applies to the assessee. 3. At the outset the Ld. Counsel of the assessee submitted that the issue is squarely covered by the decision of the coordinate Bench of the Tribunal in assessee's own case in ITA No.894/M/2018 A.Y. 2012-13 and in ITA No.895/M/2018 A.Y. 2014-15 vide order dated 23.11.2020 wherein the issue has been decided in favour of the assessee. The Ld. A.R. therefore prayed that since there is no change in facts and circumstances in the current year, therefore the issue may kindly be allowed by following the order of co-o....
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.... examined the issue of assessee's eligibility to claim the benefit of exemption under section 11 threadbare. In a detailed order, after considering various judicial pronoucements and different facets of the arguments raised by rival sides, the Tribunal concluded that the activities carried out by the assessee fall within the ambit of 'charitable purpose' under section 2(15) of the Act and the proviso to said section does not get attracted. For the sake of brevity the entire detailed findings of the Tribunal are not reproduced, however, the relevant findings and operative part of the order is quoted herein below:- "36. From the aforesaid discussion and the rebuttal made by Ld. Sr. Counsel, we do not find that the reasons cited by th....
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.... be seen specifically if the proviso to section 2(15) is to be applied in the cases like assessee is to see, whether their activities can be reckoned as in the nature of trade, commerce and business. Some of the tests of applicability of proviso in cases like that of assessee which are statutory bodies providing housing needs to the needy and poor people can be short listed in the following manner: i) Is the Institution supported/promoted by the state? ii) Is it constituted under an Act of the Legislature? iii) Has the Institution been incorporated for implementing the directive principles enunciated in the Constitution of India? iv) Are the activities of the institution closely regulated and controlled b....
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....t it could have sold the properties at a much higher rate? xv) Does it sell properties by inviting bids and allotting the property on the basis of a draw of lots rather than allotting the properties by holding an auction which would ensure the receipt of the highest price? xvi) Does the Institution sell its properties primarily to the economically less fortunate at a concessional price rather than the maximum price available from any free purchaser who would offer a higher price? xvii) Is the making of profit deliberately shunned? xviii) Does the institution continues to operate and run its activities as per its framed policy and rules and sells its properties in the manner and at the rates as per its reg....
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....d objection that the facts in the impugned assessment year whether are similar to preceding assessment years is not clearly emanating from impugned order. We do not find force in the contention of the ld. Departmental Representative. The CIT(A) in para-7.9 of the impugned order has observed that the facts are similar. The CIT(A) has not given its independent finding for adjudicating the issue and has only applied the reasoning given by the CIT(A) in assessment year 2010-11 to disallow benefit of section 11 of the Act in the impugned assessment year." 6. Since the facts of the present case are same as involved in A.Y. 2012-13 & 2014-15 as discussed above, we, therefore, respectfully following the decision of the co-ordinate Bench of the T....