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TMI Blog2016 (2) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... oking the provisions of Section 2(15) of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 2,21,555/- on account of disallowance of depreciation. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the fact that the A.O denied the claim of exemption to the assessee u/s 11 & 12 of the Act." The grounds of appeal for A.Y. 2010-11 are as follows:- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 67,36,020/- (97,57,240 - 30,21,220 already shown in the income) made by the A.O by invoking the provisions of Section 2(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the prime objective of the federation was to promote athletics and sports in India and for this the assessee charges some amount for recognizing the sports events and as such profit making is not the prime object of the assessee. The CIT(A) also taken into consideration the case laws submitted by the assessee and held that the case laws support the case of the assessee to the extent that merely because the assessee receives some recognition fees will not deviate from the fact that the main object of the assessee is the promotion of sports which is apparently for the advancement of general public utility as provided in the sixth limb of Section 2(15) of the Act which defines charitable purposes. Thus the CIT(A) held that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds "advancement of any other object of general public utility" would exclude objects of private gain; but this requirement is also stratified in the present case because the object of private profit is eliminated by the assessee under the objects as per Memorandum of Association of Society which was quoted in Assessment Order. The test to be applied is whether the predominant object of the activity involved in carrying out the object of general public utility is to subserve the charitable purpose or to earn profit. Where the predominant object of the activity is to carry out the charitable purpose and not to earn profit, it would not lose its character of a charitable purpose merely because some profit arises from the activity. The exclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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