TaxTMI 
TaxTMI 
TaxTMI 
2022 (9) TMI 502
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.... Hon'ble CIT(A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and framing the impugned assessment order u/s 143(3) of the Act is bad in law and against the facts and circumstances of the case and is not sustainable on various legal and factual grounds. 3.A. That having regard to the facts and circumstances of the case, Hon'ble C1T(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of Rs. 36,35,531/- by wrongly treating the voluntary donation received as business income of assessee society. B. That having regard to the facts and circumstances of the case, Hon'ble C1T(A) has erred in law and on facts in confirming the action of Ld. AO in making addit....
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....e is in appeal before this Tribunal. 5. The learned DR supported the orders of the authorities below and submitted that there is no infirmity into the orders of the authorities below. The assessee was required to explain the amount received from the publishers as donation. However, the Assessing Officer has given a finding that the donations were given to the assessee by the publishers for promoting the books and have claimed as business promotion expenses. 6. I have heard learned DR and perused the material available on record. The learned CIT(Appeals) had given a finding of fact by observing as under: "4.2.1 I have considered the assessment order and the submissions of the appellant. It is seen from the assessment order that the Asses....
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....r which makes it clear that the assessee had received donations from the same publishers year after year. From the analysis made it was apparent that there was no basis of working of the amounts received as donation is and that the said amounts were nothing but commission for the promotion of books. On analysis it was also concluded that the assessee had received donations from only publishers. 4.2.2 Exemption to business income is available under section 11(4A) where it has been provided that such income would be exempt under section 11 if the business is incidental to the attainment of the objectives of the organisation and separate books of account for such business are maintained. In the case of the appellant, the receipt of commissi....
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....nt from the analysis of donations received in the present and past years. It has been submitted that the four tests relied upon by the Assessing Officer have no relevance in the case of the assessee is not correct. These tests have been laid down by the Hon'ble Delhi High Court in the case of GS1 India and the Assessing Officer has effectively demonstrated that it is not a case of receiving donation but a case of receiving commission for prescribing books of the publishers in the course curriculum which benefited the publishers and had nothing to do with the charitable activities of the assessee society. 4.2.4 In view of the discussion above and on the basis of the facts brought on record by the Assessing Officer, I find no infirmity....
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....minant object where the former would support the latter. For instance, in the case of a charitable institution setup with the object of education, during the course of implementation of this object, it becomes unavoidable for the trust to prepare background material, curriculum notes, commentaries etc. which is printed and provided to students at a nominal price. Therefore, in fulfilling these objectives, it is necessary to print and distribute the material to the students and merely selling of books cannot be construed as a separate business and it is only incidental in nature. 4.2.7 For applicability of section 11(4A) it is not necessary that the business has to be held under trust. The primary requirement is that profits and gains of ....