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2018 (1) TMI 189 - AT - Income TaxExemption u/s 11 eligibility - general public utility - charging subscription as well as consultancy fees on actual - whether the assessee is not involved in any business or commercial activity and the provisions of section 2(15) of the Act is not attracted in the case of the assessee? - Held that:- With respect to the fees charged by the assessee naturally, it should be commensurating with the efforts put in by the organization and to defray its cost as well as further capital cost. It is also required to be noted that assessee is engaged in research based activity which is highly cost intensive and requires continuous spending on the innovation and new developments as it is concerning with the education of the society. The Assessee has categorically stated before the ld AO as well as before Ld CIT (A) that it is charging subscription as well as consultancy fees on actual, which fact is not denied. Therefore merely earning the surplus does not result in to the conclusion, that assessee is carrying on its activities, which can be termed as business, trade, or commerce. Furthermore on perusal of the order of the ld CIT (A), we do not concur with the arguments of the ld CIT DR that order is perfunctory and devoid of reasons for the reasons that he has decided the issues relying on the decision of Honorable Delhi high court. According to us, the ld CIT (A) has also given his finding on all the aspects of the issues raised by ld AO. In view of the above facts and respectfully relying on the decision of M/s GS1 India Versus [2013 (10) TMI 19 - DELHI HIGH COURT] we find no infirmity in the order of the ld CIT (A), hence we dismiss all the grounds of appeal of revenue.
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