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2016 (9) TMI 696 - AT - Income TaxEligible for exemption u/s.11 denied - contention of the ld. Departmental Representative that the activities are not charitable - Held that:- Denial of exemption treating as Association of Person(AOP) is not appropriate considering the status and objects of this Sabha which is in existence for morethan three decades and rendering services to the society with Music and Arts, we are of the opinion that society is not be affected by the amendment to Sec. 2(15) of the Act effective from 01.04.2009 and on this issue of trade, business and commerce. We rely on the decision of Delhi High Court in the case of The Institute of Chartered Accountants of India & ANR vs. Director General of Income Tax (Exemptions) & ORS [2011 (9) TMI 77 - Delhi High Court ] where it was held that the Director General of IT(Exemptions) was not justified in refusing exemption u/sec. 10(23C) (iv) to the assessee ICAI by a cryptic order on the ground that by imparting education for free, it was engaged in ‘’business’’ without considering whether it was engaged in ‘’trade, commerce or business’’ within the meaning of first proviso to Sec. 2(15) and further without considering the plea of assessee that it had not violated Sec. 11(5) or third proviso to Sec. 10 (23C) (iv) of the Act. So, considering the judicial aspects and objectives, we are of the opinion that the activities are within the ambit of charitable purpose and we upheld the order of Commissioner of Income Tax (Appeals) who has dealt on subject and its implication and grounds viz-a-viz explanations of the assessee and allowed the assessee appeal and we upheld the order of Commissioner of Income Tax (Appeals) and dismiss the grounds of the Revenue. - Decided in favour of assessee
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