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TMI Blog2016 (5) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... and 2010-11. The Cross Objection has been filed by the assessee in ITA 645/Del/13 for the A.Y. 2009-10. 2. Facts in brief: The assessee is a company registered under section 25 of the Companies Act 1956, as a non-profit institution with the approval of the Central government for the promotion of export of garments from India. It is registered under section 12 A (a) of the Income Tax Act, 1961 (the Act) w.e.f. 18.05.1979. The assessee has been claiming exemption under section 11 of the Act from the A.Y. 1979-80 to 199-91 and exemption was granted u/s 11 of the Act. It was only during the A.Y. 1991-92 that the A.O. held the that the assessee is not entitled to exemption under section11 of the Act, as it was carrying on business. On appeal th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been rendering services in relation to trade, commerce business for the consideration, the receipts of which exceeds Rs. 10 Lacs. He concluded that the assessee's activities neither qualify as "charitable activity" nor covered under the "concept of mutuality". He concluded that this income is therefore, assessed as per the normal provisions of the Act. Aggrieved the assessee carried the matter in appeal. 2.1. The First Appellate Authority called for the remand report from the Assessing Officer after receiving written submissions along with affidavits from the assessee. Thereafter he concluded that the issue as to whether the assessee is entitled to exemption u/s 11 of the Act is no more res integra, as the Hon'ble Delhi High Court has re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m members as rendering services for consideration which was on sound footing and appreciating the action of the A.O. 3. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in directing the AO to allow Rs. 1.50 crores as payment to the APEC HR Development Society, disallowed by the AO after proper verification. 4. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing the assessee benefit of S.11 of the Income Tax Act, 1961. 5. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing." 4. We have heard Shri KK Jaiswal, Ld.DR on behalf of the Revenue and Shri Kidus Puri, Ld.Counsel for the assessee. On a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its activities to achieve that object. They also did not appreciate that fashion shows, seminars etc. are required to be carried on educated people on export and economically it has to be carried on business purpose lines by charging fee from the participants to meet administrative and other expenses of the council. It does not mean that any activity in which loss is not suffered is being carried on for profit. Activity carried on business principles does not mean that the assessee was carrying on business. It is clear from material on record that all activities of the assessee are directed towards achieving its main object of promoting export on ready made garments from India. It did not carry any activity for earning profit and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id down the positions of law that governs the proviso to section to 2(15) of the Act. i. GIS vs. DCIT (Del) 360 ITR 138 (Del.) ii. ICAI vs. DIT (Del.) 35 Taxmann.com 140 iii. India Trade Promotion vs. DGIT (E) 2015 (53 taxmann.com 404 (Del.) Applying the propositions laid down in all these cases to the facts of this case we uphold the order of the Ld.CIT(A) on this issue. Thus we uphold the findings of the First Appellate Authority and dismiss this ground. 7. On the grievance of the revenue on ground No. 3 is devoid of merit, for the reason that the First Appellate Authority has asked the A.O. to verify this claim of the assessee and dispose off the same in accordance with law. Hence this ground is dismissed 8. Ground No. 4 is agai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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