TaxTMI 
TaxTMI 
2023 (4) TMI 627
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....st the order of the ld. Commissioner of 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 I....
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....aves leave to add or amend any grounds of appeal in course of proceedings if 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 ....
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....eu, charges are being collected) has held that the Society is not engaged in any type 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....
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....lied on the Hon'ble Court of Gujrat in the matter of DCIT, Exemption Vs. Sabarmati Ashram Gaushala Trust, 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 an....
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.... nature of "trade, commerce or business", then it must be examined whether the quantified limit (as amended from time to time) in proviso to section2(15), has been breached, thus disentitling them to exemption." Accordingly, we remit back the ground of the assessee to ld. AO for adjudication, de novo in the light of the order of Hon'able Apex Court, as discussed in paragraph 8.1 of the order of ITAT. In ITA No.13/Asr/2020 is mutatis mutandis applicable for ITA 14/Asr/2020 and follows accordingly. 8. In the result, both the appeals of the assessee bearing ITA No. 13/Asr/2020&14/Asr/2020 are allowed for statistical purpose. Order pronounced in the open court on 22.03.2023 ============= Document 1 and Diviau. 4.5 During....
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....1 To Preliminary Expenses Written Off 200.00 To Excess Of Income Over Expenditure 57080.69 TOTAL 1262631.00 TOTAL 1262631.00 From the above chart it is apparent that the assessee has not incurred any expenditure on the object for which it has been formed Document 2 да All the expenses incurred by the society are in nature of office running expenses. An amount of Rs. 4,50,000 has been spent as reimbursement of expenses, whereas the society has already booked various expenses as above apart from this, salaries and rent of the building is chargeable to Govt. account. From the Income & Expenditure account of the society, it is apparent that the society is primarily engaged in providing the se....