2024 (10) TMI 349

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessee against the assessment order passed under Section 143(3) read with section 147 of the Income-tax Act, 1961 (the Act) dated 29th March, 2016, passed by the Income Tax Officer, Exemption 2(3), Mumbai, was allowed. 02. The learned Assessing Officer is aggrieved with the above appellate order and has preferred this appeal raising following grounds as under:- "1. "Whether on the facts and circumstances of the case, the Ld. CIT(A) has erred in not acknowledging the fact that the objectives of the society are commercial in nature and the income received by the society from its activities in the form of trade and commerce is more than Rs. 10 Lakhs and hence the exemption u/s 11 shall not be granted to it as per the provisions ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion 143(3) of the Income-tax Act, 1961 (the Act) on 23rd January, 2012, at total income of Rs.7,73,12,319/-. 04. The case of the assessee was reopened by issue of notice under Section 148 of the Act on 31st March, 2015, in response to that assessee submitted a letter dated 11th January, 2016, reiterating the original income. Assessee raised objections against reopening which were disposed off on 12th February, 2016. 05. It was found that assessee is engaged in a research work in the area of Micro Wage (electronics) and has claimed benefit of exemption under Section 11 of the Act. As the activities of the assessee are pure research work, the assessee is required to be taxed and assessed under Section 10(21) of the Act subject to fulfil....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Act, the activities of the assessee must follow specified activities under Section 2(15) of the Act as the activity of the assessee are purely on research work and does not fall under Section 2 (15) of the Act. The learned Assessing Officer considered the surplus generated of the assessee of Rs.20,35,79,750/- as not eligible for benefit under Section 11 of the Act and therefore, same was added to the total income of the assessee. The learned Assessing Officer further noted that assessee is engaged in various commercial activities which were in the nature of business and therefore, the activity are also hit by proviso to Section 2(15) of the Act. On question, assessee submitted reply dated 17th March, 2016, wherein it explains its objec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e country reliant in Micro Wave Technology through incentive research and development. Thereafter considering several judicial precedents, the learned CIT (A) held that dominant purpose of assessee is charitable and activities also does not mean to carry on business accordingly, appeal of the assessee was allowed. 07. The learned Departmental Representative reiterated the grounds of appeal and stated that in view of the decision of the Hon'ble Supreme Court in case of Ahmedabad Urban Development Authority 2022, 143 taxmann.com 278, the order of the learned CIT (A) is not sustainable. 08. The learned Authorized Representative submitted that identical issue arose and in case of assessee for A.Y. 2009-10, 2011-12, 2012-13, wherein in....