TaxTMI 
TaxTMI 
2024 (11) TMI 641
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....was completed u/s 143(3) of the Act on 23.06.2016. However, the ld. Revisionary Authority examined the assessment record and was of the belief that the assessment order is erroneous in so far as it is prejudicial to the interests of the Revenue as the ld. Revisionary Authority was of the view that the activities carried on by the assessee society falls in the category of commercial activity and not charitable activity, as such, the same is hit by second proviso to section 2(15) of the Act and the Assessing Officer has failed to examine the same in the assessment proceedings. The ld. Revisionary Authority also was of the view that the membership of Rs. 1,58,00,000/- has been received during the year and the same has been capitalized and treated as corpus donation in the books of account. However, there is no evidence on record that membership fee has been taken as per the provisions of section 13(1)(d) of the Act. The ld. Revisionary Authority was of the view that membership contribution is a voluntary contribution within the meaning of section 12 which can be made with contribution to form part of corpus and the membership, however, is in the nature of consideration for getting app....
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....the preceding years while completing the assessments u/s 143(3) of the Income Tax Act 1961. 5. That the order passed u/s 263 of the Act was further wrong on facts and erroneous on the point of law, because the Ld. CIT (Exemption) has either not collected any fresh material or ever placed upon records, on the basis of which he opined / hold that the assessment order passed by the Assessing Officer u/s 143(3) of the Act, was ever erroneous or prejudicial to the interest of revenue. 6. That the Ld. CIT (Exemption) further failed to consider the information provided, documents produced, filed and placed upon records in support of our contention, which have also been examined and verified by the Assessing Officer, prior to direct the concerned Assessing Officer to pass fresh order in the light of averments made in the said order. 7. That the Ld. CIT (Exemption) has further failed to consider / appreciate while passing order u/s 263 of the Act thereby giving direction to the concerned Assessing Officer to re-frame assessment of the society that the legitimate and bonafide claim of exemption u/s 11 & 12 of the Act is continuously to be allowed in the preceding A....
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....roper on the facts and in the circumstances of the case. It is prayed accordingly." 4. On hearing the ld. AR, it comes up that the claim of the assessee society is that it had come into existence at the instance of erstwhile Oil Coordination Committee, which was nodal agency of the Government of India responsible for subsidy, administration, development, planning, exports, imports, distribution, planning, coordination, data maintenance, etc., and this body chaired by Addl. Secretary, Ministry of Petroleum and Natural Gas had decided to form assessee body which could represent all the petroleum related organizations in private, public and joint sector. 4.1 Taking the Bench across the objectives of the society, it was submitted that this body acts as an interface for the oil industry with the Government regulatory authorities, public and representative bodies of territories in the market, in order to bring oil majors on one platform to promote research and assist in research, in policy making, in hydrocarbon sector. It was submitted that the registration certificate allowed u/s 12AA(1)(b) of the Act and exemption u/s 80G(5)(vi) of the Act were valid till 5th September ....
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....and gas industry. The annual accounts placed before us at page No.22 of 23 of the paper book shows that the assessee has excess of income of Rs. 8351077 for the year ended on 31st of March 2009 and 5188749/- for March 2008. On a query being raised by the bench that whether the assessee is still enjoying the registration under section 12 A of the income tax act or not, it was replied by both the parties-that still assessee is registered under section 12 A of the income tax act. Merely because the assessee is holding conferences and seminars which are according to us in furtherance of the object of education only against payment of fees will not make the object of the trust falling into the 6th category i.e. ' Any other object of general public utility'. Further more it is not the case of the revenue that assessee is not carrying on the objective for which it has been formed and the fees and the income earned* by the assessee is not used for charitable purposes. The Ld. departmental representative could not controvert the decisions relied upon by the Ld. AR. The revenue- also could not place before us any evidence to show that the objects of the assessee are not 'education'. In view ....
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.... the scope of activities of the two societies is identical. We also find that the Hon'ble Delhi High Court order in favour of Petrotech for AY 2009-10 has been relied further in case of Petrotech for AY 2013-14 and 2014-15 vide ITA No.6682/Del/2017, order dated 05.10.2020. It comes up that while making submissions to the notice u/s 263 of the Act, the present assessee had brought to the knowledge of the ld. Revisional Authority of the fact that in the case of M/s Petrotech, the Tribunal has found the identical activities to be covered under the first limb of section 2(15) of the Act. However, the same has not at all been considered by the Ld. Revisional Authority while passing the impugned order u/s 263 of the Act. 11. It appears that the ld. Revisional Authority was carried by the conclusion that the primary objective of the assessee is to secure and promote the business interest of its members and, therefore, it cannot be said to be a public charitable organization. We are of the considered view that any organization primarily formed to secure or promote the interest of its members who were themselves engaged in business activity does not lead to an inference that the objectiv....