TMI Blog2014 (1) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... e objects of the assessee - the assessee is engaged in holding exhibitions for the trade and industry of machine tools in India - thus, the activity is incidental to the objects of the assessee - the findings of CIT(A) upheld that the conditions of Section 11(4A) are fulfilled by the assessee as the assessee has also maintained separate books for the activity – Decided against Revenue. Claim for carry forward of deficit – Set off/adjustment against the surplus of subsequent years – Assessee contended that the deficit was clearly claimed by the assessee in the computation of the total income filed along with the return of income, the same was not determined by the A.O. in the assessment order so as to enable the assessee to carry forward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormed and registered u/s.25 of the Companies Act having the main object of promotion and protection of the machine tool trade and industry in India. During the year under consideration, it had held the IMTEX and Tooltech exhibitions to promote the machine tool industry in India and the income from the said exhibitions was claimed exempt u/s.11 on the ground that it was incidental to the attainment of the main object of promoting the machine tool industry in India. It was claimed that such exhibitions were held for providing a common platform to all the manufacturers in industry, whether large or small, to establish business contacts and they also acted as a forum for meeting prospective buyers from all over the country. The assessee also cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business income in the assessment completed u/s.143(3) vide an order dated 22.12.2009. 3. Against the order passed by the A.O. u/s.143(3), the appeal was preferred by the assessee before the ld. CIT(A) who held relying on the decision of the Tribunal in the assessee's own case for A.Y. 1992-93 rendered by its order dated 30.09.1998 in ITA No.9603/Bom/1995 that the holding of exhibitions was a business activity carried on by the assessee. He however, agreed with the stand of the assessee that the holding of exhibitions was incidental to the attainment of the main objects of the trust and separate books of account having been maintained by the assessee in respect of the said activity, it was entitled to the exemption in accordance with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the case and the provisions of law, the Appellant submits that the finding that the Appellant is carrying on a business be deleted. 4. The learned Commissioner of Income-tax (Appeals) erred in not directing the Assessing Officer to determine the unabsorbed deficit for the year, and carry forward such deficit for the year as also the earlier years, for set off/adjustment against the surplus of the Association in future assessment years. 5. The learned Commissioner of Income-tax (Appeals) erred in holding that the Ground of Appeal regarding the determination of the unabsorbed deficit for the year and the carry forward of deficit for set off/adjustment in subsequent assessment years, does not emanate from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held in the case of ADIT vs. Indian Electrical and Electronic Manufacturers Association in ITA No.5470/Mum/1999 that holding of exhibition for the purpose of promotion of industry connected with electrical manufacturing of goods and equipments is incidental to the objects of the assessee. In this case also the assessee is engaged in holding exhibitions for the trade and industry of machine tools in India and in our view the said activity is incidental to the objects of the assessee. We are in agreement with the findings of ld. CIT(A) that the conditions of Section 11(4A) are fulfilled by the assessee as the assessee has also maintained separate books for the said activity. We decline to interfere with the order of Ld. CIT(A) accordingly the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions is exempt u/s.11 of the Act and since this position has been accepted by the ld. Counsel for the assessee, we dismiss ground nos. 1 to 3 of the assessee's appeal as infructuous. 9. As regards the issue raised in ground nos. 4 5 of the assessee's appeal relating to its claim for carry forward of deficit for the year under consideration for set off/adjustment against the surplus of the subsequent years, the ld. Counsel for the assessee has submitted that although such deficit was clearly claimed by the assessee in the computation of the total income filed along with the return of income, the same was not determined by the A.O. in the assessment order so as to enable the assessee to carry forward the same for set off or adjustment a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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