2023 (4) TMI 627

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....f Income Tax (Appeals)-2, Jalandhar, [in brevity the 'CIT (A)'] order passed u/s 250 (6) of the Income Tax Act 1961, [in brevity the Act] order for A.Y. 2016-17.The impugned orders are emanated from the order of the ld. ITO (Exemption) Ward Jalandhar, (in brevity the AO) order passed u/s 143(3) of the Act. 2. At the outset, both the appeals of the assessees are identical in nature and have a common factual issue. With the consent of the ld. counsel for the assessee we have taken ITA No. 13/Asr/2020 is taken as a lead case. ITA No.13/Asr/2020 3. The assessee has taken the following grounds: "1. The First Appellate Authority has erred in holding that the proviso to section 2(15) of the Income Tax act is attracted to the assessee and exem....

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....f need arises." 4. Brief fact of the case is that the assessee is a Society registered under the Society Registration Act, (XXI of 1860 and as amended by the Punjab Amendment Act, 1957 vide No. KPT/ARS/1379 of 2010 dated 01.10.2010. The assessee society is registered under section 12AA(1)(b)(i) of the Act, and had claimed exemption under section 11 of the Act in respect of its income. The assessee Society was pursuing charitable activities by running Suvidha Centre for general public by organizing and participating in awareness campaigns against drug abuse and addiction, spreading traffic awareness in general public, rendering service related to passport and visa related services, police clearance certificate, issuance of copy of NOC, iss....

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.... of Charitable Activity (2012) 27 taxman.com 199 (Asr) {(2013) 153 TTJ 235 (Amritsar)} 13. In view of the above, it is held that the case of the assessee is covered by proviso to section 2(15) and hence, does not fall within the category of a charitable organization. Accordingly, for the year under assessment, benefits under section 11 of the income-tax Act, 1961 cannot be allowed to the assessee in accordance with provisions of section 13(8) of the Income-tax Act, 1961. In view of the above, it is seen that the assessee has receipts arising out of the activity in the nature of business or commerce and accordingly provision of section 2(15) are not applicable. 14. Since the assessee has receipts arising out of activities in the nature....

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....rust, Tax Appeal No. 1162 of 2013, order dated 15/01/2014where the Sec 2(15) is construing the term 'business' which is intended for the purpose of interpreting and applying the first provisio to section 2(15) of the Act. 6. The ld. Sr. DR vehemently argued and relied on the order of the revenue authorities. The ld. Sr. DR invited our attention in order of the ld. CIT(A) page 16 para 4.5 which is extracted as below: 7. We heard the rival submission and considered the documents available in the record. The revenue authorities first pointed out that from the financial statement of the assessee it is not clear that the assessee is doing any charitable work. The eligibility for deduction u/s 11 for community work for collection of facilitatio....