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2018 (4) TMI 630

me from stall charges, seminars, subscriptions and sponsorship. Asset base of the assessee was very small. However, it was holding substantial receivable of G24.83 lakhs and cash at bank of G18.79 lakhs as on 31.03.2010. Receivables as on 31.03.2011 came to G33.86 lakhs and cash at bank was G19.95 lakhs. - In our opinion the question that ought have been addressed by the ld. Assessing Officer was whether the activities of the assessee as reflected in its income and expenditure accounts and its statement of affairs as reflected in the Balance Sheets, would show what was the dominant activity of the assessee. AO ought have identified the dominant activity of the assessee and verified whether such activity was in line with its objects and .....

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said object is an object of general public utility. 2.3 The Id CIT(A) failed to appreciate that the receipts from conducting exhibitions to the benefit of the trading community and the public is an activity of 'general public utility'. 2.4 The Id. CIT (A) failed to appreciate that the assessee has received a total receipt of RS.93.01 lakhs during the period from conducting exhibitions like (i) MADITSSIA HALL RENT (Rs.14.07 lakhs); (ii) M. INDEXPO (Rs.0.48 lakhs); (iii) M IHE (Rs. 75.95 lakhs); (iv) M. PRINT-n-PACK (Rs.0.69 lakhs); (v) MEDITSSIA AYUSH (Rs.0.17 lakhs); (vi) M.BIC (Rs.1.68 lakhs). 2.5 The Id. CIT (A) ought to have appreciated that the assessee has also generated a net surplus of ₹ 22,81,971/- from out of the abov .....

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5) of the I.T. Act, even if the registration is not cancelled . 5. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned Commissioner of Income Tax (Appeals) may be set aside and that of the Assessing Officer may be restored. 2. Facts apropos are that assessee a society registered with the Registrar of Societies, Tamil Nadu and also having registration u/s.12A(a) of the Income Tax Act, 1961 (in short the Act ) had filed its return for the impugned assessment years declaring Nil income after claiming exemption u/s.11 & 12 of the Act. Assessee was conducting trade fairs, exhibitions etc. As per the assessee, it was carrying on activities in the nature of general public utility a .....

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ficer held that assessee, though it was pursuing an activity which was general public utility, was also undertaking activities for making profits. According to ld. Assessing Officer, assessee could not be considered as an organization doing any charitable activity in view of the proviso to Section 2(15) of the Act. Relying on Section 13(8) of the Act, ld. Assessing Officer denied exemption claimed by the assessee u/s.11 & 12 of the Act. 4. Aggrieved, assessee moved in appeal before the ld. Commissioner of Income Tax (Appeals). Argument of the assessee before ld. Commissioner of Income Tax (Appeals) was that its activities, which were in the nature of conducting exhibitions under the names Ideal Home Exhibition, Print n Pack, Indexpo and .....

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2 of the Act. According to him, assessee, through its activities like conducting seminars, exhibitions and conferences was educating members as well as non members, with the ultimate aim of promoting micro and small scale industry. He held it to be a charitable activity and directed the ld. Assessing Officer to allow the claim of exemption u/s.11 and 12. 6. Now before us, the ld. Departmental Representative strongly assailing the order of the ld. Commissioner of Income Tax (Appeals) submitted that assessee had no property of its own which it could have rented out for exhibitions and trade fares. As per the ld. Departmental Representative, fixed assets of the assessee as on 31.03.2010 came to ₹ 9,37,804.60, and as on 31.03.201 came to .....

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ro and Small Enterprises and thus obtain by all acknowledged means the redressal of grievances of the industrialist in Micro and Small Enterprises. vi) To maintain a library of books and publications and literature on Micro and Small Enterprises, so as to diffuse commercial information and knowledge amongst the members of the Association . Its income and expenditure accounts for the years as on 31.03.2010 and 31.03.2011 read as under:- 31.03.2010 Expenditure 31.03.2011 31.03.2010 Income 31.03.2011 2,372,558.73 To Establishment, Bulletin and Office exp 2,376,217.01 1,171,566.00 By Subscriptio n/ Sponsorshi p 3,508,500.00 2,688,909.20 Infrastructure 6,871,374.70 14,900.00 Adm. Fee/ Entrance fee 954.890.00 1,447,188.00 Publicity and Marketing .....

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illary to it. Unless a close examination of this nature is done, in our opinion, a conclusion as to whether assessee was hit by the proviso to Section 2(15) of the Act cannot be reached. None of the lower authorities had done this analysis. In the circumstances, we are of the opinion that the matter requires a fresh look by the ld. Assessing Officer. We set aside the orders of the authorities below and remit the question whether assessee was eligible for claiming exemption u/s.11 and 12 of the Act back to the file of ld. Assessing Officer for consideration afresh in accordance with law. 9. In the result, the appeals of the Revenue are allowed for statistical purpose. Order pronounced on Thursday, the 5th day of April, 2018, at Chennai. - In .....

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