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2018 (3) TMI 479 - HC - Income TaxEntitlement to exemption u/s. 11 - whether assessee has not fulfilled all the requirements of sec. 11(AA) - whether the activity of holding an exhibition IMTEX-92 by the Assessee would amount to an activity of business? - activity incidental to the attainment of the objects of the Assessee - Held that:- From the statement of case, it is clear that the total receipts from holding the exhibition IMTEX-92 is ₹ 4.76 Crores and the net surplus in ₹ 1.72 Crores. It involves the activity of taking space on hire from Trade Fair Authority of India. Thereafter, it involves setting out the exhibition tariffs (lower rates for SSI Units), premium for prime location, air conditioning surcharge, rentals to be charged from foreign participants, security charges, telephone charges etc., as the statement of case records. Moreover, the statement of case also states that it is not the first time the Assesssee is holding an exhibitionIMTEX92 (we are informed at the bar, it is held every two years). Authorities under the Act have all found that holding of an exhibition is a well organized activity, making use of its past experience, so as to earn substantial amount of money. The Tribunal held that it is not an activity carried on no-profit-no-loss basis or only for marginal/nominal gain. It therefore, does satisfy the test of business. Thus, on the above facts, the Authorities under the Act have held that holding of exhibitionIMTEX92 is a business activity. Therefore, covered by the first part of Section 11 (4A) of the Act. The business of holding exhibition IMTEX92 is incidental to the objective of the Trust to share knowledge amongst its members. Benefit of Section 11 of the Act is not available to the ApplicantAssessee as it had not maintained separate books of accounts in respect of its incidental business as mandated by Section 11(4A) of the Act. - Decided against assessee.
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