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2019 (6) TMI 348 - AT - Income TaxExemption u/s 11 - Charitable activity or not? - income arising in the form of sponsorship out of the activity of holding Fairs, Meetings, Conferences and Seminars - appellant has been granted registration u/s 12AA since 1995 and onwards - HELD THAT:- Since the factual matrix of the appellant’s case for the AY 2012-13 is identical with that involved in AY 2011-12 [2016 (11) TMI 600 - ITAT KOLKATA] , we have no hesitation in holding that the ratio laid down in the decision of the coordinate Bench of this Tribunal holds good and applies to the year under consideration as well. Applying the said decision we hold that the appellant’s activity of holding trade fairs, exhibitions and conferences was not in the nature of trade, commerce or business and therefore there was no violation of Section 2(15) of the Act. Accordingly we hold that the lower authorities were legally unjustified in not granting the appellant the benefit of Section 11. We note that even though the appellant realized surplus from organizing fairs & exhibitions yet there was express understanding between the appellant and the participants that the surplus, if any, remaining after meeting the cost and expenses for holding the events would be transferred to infrastructure fund of the appellant. We therefore find that the surplus generated from holding the events was an unintended surplus which the contributor at the outset had agreed to appropriate as their contribution to ‘Own Infrastructure Fund’ of the appellant and therefore it was corpus in nature. Viewed from any angle therefore the surplus was not bearing income character in the hands of the appellant and therefore the lower authorities were unjustified in assessing the same as business income of the appellant. - Decided in favour of assessee Treating the corpus donation - admission fees from its members is exempt u/s 11(1)(d) or not? - HELD THAT:- As relying on DIVINE LIGHT MISSION. [2004 (4) TMI 25 - DELHI HIGH COURT] we hold that the membership fees received from members were towards the corpus and therefore rightly claimed exempt u/s 11(1)(d). The AO is therefore directed to delete the addition - Decided in favour of assessee
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