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2021 (10) TMI 179 - DELHI HIGH COURTExemption u/s 11 - Charitable activity u/s 2(15) - receipts under the heads ‘Revenue from test laboratory ‘and ‘consultancy receipts ‘ - Commercial activity or not - whether activities of the assessee do not fall under any of the categories i.e. relief to poor, education, medical relief, preservation of environment and preservation of monuments or places or objects of artistic or historic interest - HELD THAT:- In any event the assessee-association is charitable in nature and the appellant itself has granted the assessee registration under Section 12A and also recognized under Section 10(23C)(vi) of the Act vide notification No.1348 dated 31st October, 2007. Though the Assessing Officer has held that the assessee-association has various source of income from commercial activities, yet this Court finds that Appellate Authorities i.e. Commissioner (Appeals) and ITAT have held that the assessee-association has not been earning any profit as the main object of the assessee-association is to improve the public transport system in the country and the road safety standards. Undoubtedly, the activities of laboratory testing and consultancy are bringing revenue to the assessee-association but the intent of such activities is not to earn profit for its shareholders/owners. Consequently, this Court is in agreement with the findings of the CIT (A) and ITAT that the assessee-association does not carry on any business, trade or commerce with the intent of earning profit. Supreme Court in State of Haryana & Ors. vs. Khalsa Motor Limited & Ors.[1990 (8) TMI 416 - SUPREME COURT]has held that the High Court was not justified in law in reversing, in second appeal, the concurrent finding of the fact recorded by both the Courts below. The Supreme Court in Hero Vinoth (Minor) vs. Seshammal,[2006 (5) TMI 478 - SUPREME COURT]has also held that “in a case where from a given set of circumstances two inferences of fact are possible, the one drawn by the lower appellate court will not be interfered by the High Court in second appeal. Adopting any other approach is not permissible.” It has also held that there is a difference between question of law and a “substantial question of law” - Revenue appeal dismissed.
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