TaxTMI 
TaxTMI 
2023 (11) TMI 793
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....sioner of Income Tax/Income-tax Officer, National e- Assessment Centre, Delhi for the assessment year 2018-19 u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter the 'Act'), vide order dated 04.02.2021. 2. The only issue in this appeal of assessee is as regards to the revision order passed by CIT(Exemptions) u/s. 263 of the Act revising the assessment order passed by AO for assessment year 2018-19 u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act dated 04.02.2021 allowing the claim of exemption u/s. 11 & 12 of the Act. For this issue, assessee has raised various grounds which are argumentative in nature but issue is only one and hence, need not be reproduced. 3. Brief facts are that the assessee, a Society regi....
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....ials for motor vehicles or any other athletic sports or pass times and to offer, give or contribute towards prizes, medals and awards therefore and to promote, give or support dinners, balls, concerts and other entertainments arranged in connection thereto. 6. To establish, promote or assist in establishing or promoting, to affiliate with and to subscribe to or become a member of any other Associations or clubs whose objects are similar or in part similar to the objects of the club, or the establishment or promotion of which may be beneficial to the club. Provided that no subscriptions be paid to any such other Associations or club out of the funds of the club except bona fide in furtherance of the objects of the club. The asses....
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....nd proposal sent by the Range Head u/s. 263 of the Act on 31.03.2022, a show cause notice dated 06.03.2023 was issued with a proposal to revise the assessment framed by AO allowing the claim of exemption u/s. 11 of the Act. In view of the amended provisions of section 2(15) of the Act, which has not been examined by the AO and hence, the said order is prejudicial to the interest of Revenue as per CIT(Exemption). The CIT(Exemption) after considering the submissions of the assessee concluded that in view of the decision of Hon'ble Supreme Court in the case of ACIT (Exemptions) vs. Ahmedabad Urban Development Authority, [2022] 449 ITR 1 (SC), the order of AO is erroneous insofar it is prejudicial to the interest of Revenue in term of section 2....
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....f Ahmedabad Urban Development Authority, supra, has issued show cause notice and finally passed revision order u/s. 263 of the Act with a direction to decide the issue with reference to application proviso to the provision of section 2(15) of the Act in the light of the recent decision of Hon'ble Supreme Court in the case of Ahmedabad Urban Development Authority, supra. The ld.counsel for the assessee stated that the CIT(Exemption) apart from Ahmedabad Urban Development Authority, supra, has not examined any facet of the claim of exemption or applicability of proviso to provision of section 2(15) of the Act and simply set aside the assessment. The ld.counsel for the assessee filed copy of judgment of Hon'ble Supreme Court in the case of Ahm....
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....t and hence the Order dated 04.02.2021 is found to be erroneous in so far as it is prejudicial to the interest of the Revenue. Subsequently, he took us through the para 8.1 which reads as under:- "8.1) To sum up, the assessee's various activities as discussed above, are 'commercial' in nature and the same are conducted for a fees or consideration. For the A.Y.2018-19, the assessee trust has mainly generated income from collection of membership fee, entry fee, sponsorship, holding of events in different categories, etc. Thus, there is violation of Sec.2(15) of the Act. Hence, exemption u/s. 11 of the Act claimed by the assessee for the A.Y.2018-19 ought to have been denied. Further, in this case, one more condition for denial of ....