TaxTMI 
TaxTMI 
2019 (7) TMI 2003
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....ribution from Govt. of India amounting to Rs. 74, 99,00,000/- and corpus contribution from SIDBI of Rs. 18,74,75,000/-. The AO after hearing the assessee held that the receipts are liable to be taxed as income u/s 2(24)(iia) of the Act and accordingly passed assessment order u/s 143 (3) of the Act. The assessee challenged the assessment order before the Ld. CIT (A). The Ld.CIT (A) partly allowed the assessee's appeal. Against the said findings of the Ld. CIT (A), the revenue is in appeal before the Tribunal. 3. The revenue has challenged the impugned order passed by the Ld. CIT (A) on the following effective grounds:- "1. Whether on the facts of the case and in law the Ld. CIT(A) was justified by relying upon the decision of Hon 'ble ITAT in assessee 's own case for A. Y.2010-11 in which the Hon'ble ITAT was right in holding that the assessee performs charitable activities within the meaning of proviso to section 2(15) of the Income Tax Act, 1961. 2. Whether on the facts of the case and in law the Ld. CIT(A) was justified by relying upon the decision of Hon'ble ITAT in assessee 's own case for A. Y.2010-11 in which the Hon'ble ITAT was r....
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....t aside. 5. On the other hand, the Ld. counsel for the assessee relying on the order passed by the Ld. CIT (A) submitted that the ITAT has already decided the identical issue in favour of the assessee in the assessee's own case for the AY 2010-11 and since the Ld. CIT (A) has decided the identical issue in favour of the assessee by following the decision of the ITAT, Mumbai in assessee's own case ITA NO. 6282/Mum/2014, there is no merit in the appeal of the revenue. 6. We have heard the rival submissions and also carefully gone through the relevant record including the order passed by the coordinate Bench in assessee's own case for the AY 2010-11. As pointed out by the Ld. counsel for the assessee, the Ld. CIT (A) has decided the identical issue in favour of the assessee by following the decision of the coordinate Bench rendered in the assessee's case (supra). The relevant portion of the order passed by the Ld. CIT (A) is reproduced as under:- "6.2.2 I have gone through the order of the ITAT and the facts of the Hon tie ITAT are placed hereunder: a). The appeal filed by the assessee pertaining to assessment year 2010-11 is directed against an order passed by....
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.... any year were to be transferred to the corpus fund to be spent towards fulfilling the objectives of the Trust. The trust- deed also prescribes the manner in which the scheme is to be implemented and it also provides for a Board of Trustees, whereby the Chairman & Managing Director of SIDBI is to be its Ex- officio Chairman and other members being drawn from the officials of the Government of India. The Management and administrative affairs of the Trust are under the overall supervision and superintendence of the Board of Trustees." 6.2.3 The Hon'ble ITAT has also dealt the objects and purposes of the Trust. Further the legal position and application of the proviso to section 2(15) of the Act was also discussed as to whether the assessee Trust has been established for charitable purpose or not;' The nature of income earns and how to treat such income whether is it conclusive to determine that the assessee Trust is not established for charitable purpose. These questions were answered the Hon'ble ITAT is mentioned as under: "In other words, the existence or otherwise of the profit motive in the activities carried out by the assessee Trust would be crucia....
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.... and purpose for which the assessee Trust has been setup, namely, ITA No.6282/Mum/2014 (Assessment Year 2010-11) to mitigate the difficulties faced by the small scale industries and micro enterprises in availing credit facilities from various lending institutions. It is also to he noted that the object and purpose of the Trust is focussed on small scale industries and micro enterprises and is not available to entrepreneurs at large.Apart there-from, it is also prescribed in the scheme operationalized by the Trust that the benefits are to be made available only to credit facilities aggregating upto Rs.10.00 lacs sanctioned and disbursed by the lending institutions. Therefore, considering the focused area of the Trust, it could not be inferred that there is any profit motive so as to view the activities to be 'trade, commerce or business as understood for the purposes of proviso to section 2(15) of the Act. Therefore, in our considered opinion, on facts, it is not possible to infer that assessee Trust is carrying on any regular 'trade, commerce or business' and on the contrary it is an entity which is essentially existing for charitable purposes but conducting some activi....