2022 (11) TMI 584

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....gistered under the Societies Registration Act, 1860 and also registered under sections 12A and 80G of the I.T. Act, 1961. The assessee filed its return of income for the A.Y. 2015-16 declaring NIL income on 10.02.2016. The case of the assessee was selected for scrutiny under CASS and notice under section 143(2) of the I.T. Act, 1961 dated 26.07.2016 was issued. Thereafter, the assessment was framed under section 143(3) vide order dated 01.12.2007 wherein the total income of the assessee was determined at Rs.3,14,88,880/-. 2.1. Aggrieved by the order of A.O, the assessee carried the matter in appeal before the Ld. CIT(A) who vide order dated 20.09.2018 in Appeal No.CIT(A), Delhi- 40/10114/2017-18 granted substantial relief to the assessee....

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....s with various sponsors were not exempt under section 11 of the I.T. Act, 1961 as they fall under the proviso to Section 2(15) of the I.T. Act, 1961 and accordingly, the income of the assessee is to be taxed in the status of AOP at maximum marginal rate. 4.1. The A.O. also noted that assessee has claimed depreciation as application of income. He was of the view that the depreciation on the cost of fixed assets which has been claimed as application and allowed in the year of acquisition, is to be disallowed as application of income. He, accordingly, disallowed the assessee's claim of depreciation on the fixed assets, cost of which have been allowed as application of income. He worked-out the net depreciation to be disallowed at Rs.8,63,28....

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....both the parties and perused the material available on record. The issue in the present appeal of the Revenue is with respect to allowing the claim of the assessee by ignoring the fact that the activities of the assessee are commercial in nature and covered by 1st proviso to section 2(15) of the I.T. Act, 1961. We find that on identical facts for the A.Y. 2011-12, in assessee's own case, the Revenue had filed an appeal before the Tribunal and the Tribunal vide order dated 19.07.2018 in ITA.No.1130/Del./2016, dismissed the appeal of Revenue by observing as under : "25. Coming back to the objects of the impugned association, the fundamental or dominant function of the association is to represent the country in international forums. A....

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....Exem) 347 ITR 99 had the occasion to consider the grievance of the ICAI which was denied exemption u/s. 10(23C)(iv) of the Act because in the opinion of the DGIT (Exem.) the institute was holding coaching classes and therefore was not an educational institution, consequently the institute was covered under the last limb of charitable purpose i.e. advance of any other object of general public utility in the light of the amendment brought o Sec. 2(15) of the Act as the institute was charging fees for conducting coaching clauses and making huge money in a systematic and organized manner. Considering the facts in the light of the amended provisions of Sec. 2(15), the Hon'ble Delhi High Court held that the order denying the exemption was not....