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TMI Blog2018 (6) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 r.w. 143(3) of the Income Tax Act, 1961; in short 'the Act' in first AY and u/s 143(3) of the Act in latter two assessment years; respectively.. 2. Both the Learned Representatives state at the outset that the Revenue's sole substantive ground identically pleaded in these three appeals is that CIT(A) has erred in law as well as on facts in treating the assessee to be providing "relief of the poor" without having any corresponding specific object clause in its trust deed indicating it to have been advancing other objects of general public utility only as per latter limb of section 2(15) of the Act. Learned Departmental Representative highlights the effect that assessee-society pays the artisans concerned @ 5% of the mark up on cost of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n with the Government Departments (Central or State) and Semi Government Organisations; (iv) To take over the assets and liabilities of any society working or defunct with objects similar to that of the Society, subject to approval by the members at a special meeting called for the purpose; (v) To take help/assistance of experts or of any organization for the betterment of the craft products viz design, quality, production and for the economic, social and cultural upliftment of the producers irrespective of caste, creed or sex; (vi) To cooperate and collaborate with national, international and other agencies working with similar and/or allied objectives as this society preferably on specific projects; (vii) To provide relief to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society and to cooperate financially or otherwise with any person or persons in aid of and in furtherance of such objects; (xiv) the society shall not distribute amongst its members any money in any form at all which the society may have earned as profit and such profits shall be applied solely for the purpose of carrying out the aims and objects of thee society. This shall not, however, prevent payment of remunerations to any person or persons or to any member in return for any Services actually rendered to the society; (xv) to do all other activities that are incidental or conducive to the attainment and furtherance of the aims and objects of the society; (xvi) to make rules and regulations in connections with the management and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hip, the relevant "relief of the poor" clause was nowhere incorporated in its objects and its dissolution clause did not prevent disbursement of profits to trustees and other parties etc. He therefore invoked sections 11, 12 & 13(8) of the Act to disallow assessee's exemption claim. 6. The CIT(A) reverses Assessing Officer's above stated action in his common lower appellate order under challenge. He has first of all considered visuals of the assessee providing all help to a variety of artisan of groups as well as individuals. The said detailed discussion is not reproduced in verbatim for the sake of brevity as it runs into seven pages in lower appellate findings. Learned Departmental Representative is fair enough in not disputing the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... An entity with a charitable object of the above nature was eligible for exemption from tax under section11 or alternatively under section 10(23C) of the Act. However, it was seen that a number of entities who were engaged in commercial activities were also claiming exemption on the ground that such activities were for the advancement of objects of general public utility in terms of the fourth limb of the definition of 'charitable purpose'. Therefore, section 2(15) was amended vide Finance Act,2008 by adding a proviso which states that the 'advancement of any other object of general public utility' shall not be a charitable purpose if it involves the carrying on of (a) any activity in the nature of trade, commerce or business; or (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, entities whose object is 'education' or 'medical relief' would also continue to be eligible for exemption as charitable institutions even if they incidentally carry on account of commercial activity subject to the conditions mentioned above." Learned Departmental Representative fails to rebut the fact that Assessing Officer has himself accepted the assessee to have been working with poor, marginal artisans and women crafts producers assisting them in enterprise development, skills and technical upgradation as well as in providing them market access for their corresponding products. It is in this backdrop of facts that we observe the assessee to be covered under the specified category of "relief of the poor" as per Board's beneficial c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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