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2019 (6) TMI 1516 - AT - Income TaxExemption u/s 11 - Assessee registered under section 12A under sixth limb of the definition of ‘charitable purposes’ as given in section 2(15) - HELD THAT:- It is pertinent to note that registration under section 12A was granted to the assessee by the Income Tax Department after considering its objects which, inter alia, included “to assist and encourage the application of science and scientific methods to the manufacture and utilization of leather and allied products by the publication of journal and other literature or by the holding of meeting from time to time, or otherwise to organize exhibitions, symposium etc. for defusing among the technologists knowledge and information relating to leather and allied industries to create public interest in leather science by organizing popular scientific talks and by defusing basic and applied scientific knowledge and in pursuance of these objects, which were considered as charitable while granting registration u/s 12A to the assessee, exhibitions were organized by the assessee known as “LEXPO” during the year under consideration and income from Stalls rent and entry ticket charges was generated. There was also income generated by the assessee from sale of publication. In the return of income filed for the year under consideration, exemption under section 11 was claimed by the assessee for the said income but the said exemption was denied by the AO in the assessment completed under section 143(3) by relying on the proviso to section 2(15) as amended w.e.f. A.Y. 2009-10 as well as the provisions of section 28(iii) of the Act. Similar issue was involved in the case of Credai Bengal [2016 (11) TMI 600 - ITAT KOLKATA ] it was held by the Tribunal that where assessee’s object of promotion of construction industry in India had been accepted by the Revenue for granting registration under section 12AA, merely because the assessee held fairs in India and abroad which generated surplus fund to the assessee, it being incidental to main object of the assessee could not be said to be commercial activity of the assessee and there was no violation of the provisions of section 2(15). Ratio of the decision of the Tribunal rendered in the case of Indian Chamber of Commerce 2014 (12) TMI 256 - ITAT KOLKATA as well as in the case of Credai Bengal 2016 (11) TMI 600 - ITAT KOLKATA is squarely applicable in the present case and respectfully following the same, I set aside the impugned orders of the ld. CIT(Appeals) on the issue under consideration and direct the Assessing Officer to grant exemption under section 11 to the assessee for both the years under consideration as claimed. - Decided in favour of assessee.
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