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2024 (4) TMI 545 - AT - Income TaxExemption u/s 11 - assessee is a Charitable Trust registered u/s. 12A - disallowed assessee’s claim of exemption on the pretext that the activities of the assessee are restricted to its members - assessee is predominantly a mutual association - HELD THAT:- Co-ordinate Bench in Assessment Year 2011-12 [2018 (4) TMI 1293 - ITAT MUMBAI] holding of the seminar at Bangalore by the assessee was in furtherance of the dominant object of the assessee, viz. empowerment, betterment and creating awareness amongst the industrialists of the Fragrance and Flavours industry, and display of the products of the sponsors can safely be concluded to be for furtherance of and in the interest of the members of the trade. We are unable to persuade ourselves to be in agreement with the view of the A.O that as the products of the sponsors were displayed at the seminar held at Bangalore, therefore, on the said stand alone basis the assessee was to be held to have carried on commercial activities. We are of the considered view that on a close analysis of the aforesaid activities of the assessee trust ,which if viewed in a broader perspective and pitted against the dominant object of the assessee to hold a seminar for furtherance of and in the interest of the members of the industry, cannot be characterised as a commercial activity. We are unable to persuade ourselves to be in agreement with the view of the lower authorities that the assessee was involved in carrying of commercial activities. We thus being of the view that as the assessee is carrying on its charitable activities, which are in the nature of advancement of the object of general public utility and is not carrying on any commercial activity, therefore, uphold the entitlement of the assessee towards claim of exemption under Sec. 11 The Co-ordinate Bench threadbare examined activities of the assessee from all facets including the issue of rendering services to members. In light of aforesaid decisions by Co-ordinate Bench we find no infirmity in the impugned order. Thus, the order of CIT(A) is upheld and appeal of Revenue is dismissed.
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