TMI Blog2009 (5) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)On the facts and in the circumstances of the case, and in law, the ld. CIT(A), Mumbai has erred in holding that the assessee s activity of holding exhibition is incidental to the attainment of the object of the Council. (2)On the facts and in the circumstances of the case, and in law, the ld. CIT(A), Mumbai erred in holding that assessee has maintained separate books of account for exhibition activity. (3)On the facts and in the circumstances of the case, and in law, the ld. CIT(A) Mumbai erred in holding that assessee has fulfilled the conditions as laid down under section 11(4A) of the Income-tax Act, 1961 and is, therefore, entitled for exemption under section 11 of the Income-tax Act, 1961. (4)On the facts and in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are rendered for a fee/cess/consideration shall not be entitled for exemption. The ld. D.R. has also filed the synopsis of his argument which are placed on record. The sum and substance of the submission of the Ld. D.R. is that as section 2( 15 ) has been amended by the Finance Bill, 2008 by adding the proviso and hence, the activity of the assessee to hold exhibition for which the assessee is collecting the fees, hence the income generated from the exhibitions cannot be treated as the advancement of any object of the general public utility. The another argument of the ld. D.R. is that though the proviso is inserted with effect from 1-4-2009 but the same is inserted to plug the mischief in the main enactment and it is retrospective in op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and collected the gross receipt Rs. 10,24,13,758 and after deducting the expenditure relating to the such exhibition, net surplus of Rs. 1,67,88,038 was directly credited to the Reserve Fund. The Assessing Officer held that organizing of the Trade Fair activities is a business activity and hence the Assessing Officer denied the benefit of section 11 to the assessee. The identical issue have come for the consideration before the Tribunal in the assessee s own case for the assessment year 1996-97 and held as under : "(4)The ld. CIT(A) observed that during assessment year 1993-94 the total income of the assessee was treated as exempt including the income of the exhibition. The ld. CIT(A) also referred to the decision of the ITAT Mumbai Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed." In this year, the issue is identical which has already been decided in assessee s favour in the assessment year 1996-97. Now, we have to consider the argument of the ld. D.R. in the background of the Legislative change made by way of amendment to section 2( 15 ) of the Income-tax Act. Section 2( 15 ) which are amended by the Finance Act, 2008 reads as under: " Charitable purpose includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of renderin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties or procedural law regulating the procedure to enforce the rights. So far as section 2( 15 ) is concerned, there should not be dispute that it is a substantive provision and a proviso to a section is not independent of the section to which it is attached, calling for independent consideration or construction, detaching same from the construction to be placed on the main section as it is merely subsidiary to the main section and is to be construed in the light of the section itself. The object of the present proviso is to carve out certain activities from the definition of the charitable purpose and it affects the rights of the parties. Being it is a substantive law, and as per the well settled principles of interpretation as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the Association. (2)On the facts and in the circumstances of the case and in the law the learned Commissioner of Income-tax (Appeals) has erred in not deciding the following ground of appeal agitated in the appeal petition filed with him: (2.1)On the facts and in the circumstances of the case and in the law, the learned DDIT has erred in treating the annual membership subscription of Rs. 42,80,250 as part of business income by denying exemption under section 11 of the Act instead of treating this amount as totally exempt. He ought not to have done so. He should have given the benefit of mutually principle by exempting the same which he ought to be directed to do so. (2.2)On the facts and in the circumstances of the case and in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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