TMI Blog2010 (8) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... -05. 2. The first issue in this appeal of Revenue is against the order of CIT(A) in deleting the addition made by Assessing Officer on account of disallowance of ₹ 19,27,661/- towards contribution transferred to investor s service cell. For this, Revenue has raised the ground No.:- 1. The Ld. CIT(A) has erred in law and on facts sin deleting the addition made, on account of :- (i) Disallowance of ₹ 19,27,661/- made by the Assessing Officer being contribution transferred to Investors Service Cell amounting to ₹ 19,27,661/- (ii) u/s.43-B being Listing Fee payable to SEBI, treated by Assessing Officer as Business Income , amounting to ₹ 19,356/- 3. We have heard the rival contentions and gone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption under s. 11 of the trust. In the instant case before us the clause under question is similarly worded and we think that such an ancillary clause which confers a power on the assessee-association to create a fund or trust for the benefit of members, ex-members or employees etc. may be construed as an ancillary or subsidiary clause which is intended to further and advance the dominant objective of the association viz. promotion of the interest of brokers and dealers sin the stock market so as to develop the capital market in the general public interest. We are fortified in our view by the decision of the Hon ble Supreme Court in CIT vs. Dharmodayam Co. 1977 CTR (SC) 341 : 1(1977) 100 ITR 527 (SC) wherein it was held that the mere exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, rejected. 27. For the reasons discussed above and particularly keeping in view the various judicial pronouncement on the issue considered by us as above, we hold that the assessee is entitled to the claim of exemption under s. 11 of the IT Act. Various other grounds contained in the grounds of appeal for the assessment years under reference have not been argued by the learned counsel for the assessee and these grounds were not pressed for our adjudication. We would accordingly, hold that the assessee-association is a charitable institution under s. 11(i) of the IT Act would be entitled to exemption if the other conditions regarding application of income as per the provisions of ss. 11 to 13 are satisfied in the instant case. With ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4(x) which contemplates benefits only to the members, exmembers, employees or ex-employees is also not an object of general public utility. Therefore, activities and objects of Stock Exchange do not make it an institution of general public utility. Its purposes are not covered u/s.2(15) of the I.T. Act, and therefore, the assessee is not eligible for exemption u/s.11 to 13 of the I.T. Act. 4. Further, in regard to the application of the provisions of section 43B of the Act, the Ld. counsel of the assessee argued that the relevant provisions are not applicable as the income of the assessee is income from other sources instead of business income. 5. After hearing rival contentions and going through the Tribunal s order in the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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