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2019 (9) TMI 761 - AT - Income TaxExemption u/s 11 - charitable activity u/s 2(15) - grant received from different organization including foreign grants - scope of proviso to section 2(15) of the Act inserted w.e.f. assessment year 2009-10 - AO noted the objects and activities of the assessee society and observed that the assessee is a research-based organization carrying on research on various issues and providing consultancy on the issues as desired by their clients and held that the assessee was engaged in activities being “advancement of any other object of general public utility” in the nature of commercial and consultancy - CIT(A) held that the activities of the assessee were falling under “advancement of any other object of general public utility” but the assessee was not engaged in the activity of trade or commerce or the business thus eligible for exemption u/s 11 - HELD THAT:- In the instant case, the Assessing Officer has not able to substantiate that activity of the assessee were carried out with any profit motive. The assessee is a social science research institution founded in the year 1963. The institution apart from handling individual and group projects operates programs of research and training, namely, ‘The Institute of Chinese Studies’, ‘The Institute for Comparative Democracy’, ‘Sarai Program on Media and Urbanism’, ‘Program on Social and Political Theory’. The assessee derives its faculties from Indian Council of social science and receives Grant from government organization, including Ministry of external affairs. The research data of the assessee are used by the Election Commission of India and media for dissemination on the subjects of politics and democracy and is meant for research purposes and for non-profit and non-commercial use - as submitted that more than 90% of activities are for research purposes and only small amount of activities i.e. less than 10% are for media uses. AO has not demonstrated anywhere that fee received by the assessee are exorbitant and excessive then the cost incurred by the assessee. No error in CIT-A as relying on ICAI Vs. DGIT [2011 (9) TMI 77 - DELHI HIGH COURT] case holding the assessee as engaged in the charitable activity. The rule of the consistency also demand that the Revenue should not agitate this appeal, if the appeal in subsequent years on the same issue in dispute have not been agitated by the Revenue. Advance or unspent amount received for ongoing research and project work as not chargeable to tax - CIT(A) deleted the addition to income - HELD THAT:- The assessee has treated the amount received against the project as and when it has accrued to the assessee, according to the project work carried out by the assessee, which in our opinion is in accordance with law. We do not find any error in the finding of the CIT(A) on the issue in dispute and accordingly, we uphold the same.
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