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2023 (1) TMI 1174 - AT - Income TaxExemption u/s 11 - assessee is rendering specific service to its members as well as non-members and charging fees from them which is liable to be taxed under head ‘Profit and gains of Business & Profession’ and as such its activities are not charitable in nature as envisaged u/s 2(15) - CIT-A held that the activities of assessee organization charitable in nature and eligible for exemption u/s 11 - HELD THAT:- It is not in dispute that for the Assessment Year 2006-07 and 2007-08 exemption had been denied on the ground that the assessee was involved in trade, commerce or business since the assessee was receiving fees and other income from known members also. The denial of the exemption has been set aside by the Ld.CIT(A) against which the Department of Revenue had approached this Tribunal and his Tribunal had allowed the exemption but directed the assessee to maintain separate books of accounts u/s 11(4A) of the Act. As against the order of the Tribunal, the assessee preferred an appeal before the Hon’ble Delhi High Court [2012 (11) TMI 429 - DELHI HIGH COURT] treated the assessee as charitable institution u/s 11(1) of the Act. Even in the year under consideration the exemption u/s 11(1) has been denied by invoking mischief of proviso to Section 2(15) mainly on the ground that the assessee involved in trade, commerce or business. The Ld.CIT(A) by following the principles of consistency and also orders made in assesses’s own case right from the Assessment Year 2006-07 to 2014-15 and also by following orders of the Tribunal, the Hon’ble Delhi High Court which treated the assessee as charitable institution u/s 11(1) of the Act and allowed the appeal.
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