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TMI Blog2018 (9) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... it. 2. The ld. CIT(A) has erred in law as well as on facts of the case by confirming disallowance of a sum of Rs. 2,50,000/- U/s 40(a)(ia) of the Income Tax Act, 1961. 3. The appellant craves leave to add, amend, alter, delete or modify any of the above grounds of appeal before or at the time of hearing." 2. At the time of hearing, the ld AR of the assessee has stated at bar that the assessee does not press ground No. 1 of the appeal and the same may be dismissed as not pressed. The ld DR has raised no objection if ground No. 1 of the appeal is dismissed as not pressed. Accordingly, ground No. 1 of the appeal is dismissed being not pressed. 3. Ground No. 2 of the appeal is regarding disallowance of Rs. 2.50 lacs U/s 40(a)(ia) of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee has not deducted the tax at source from the payments made to the contractor. The ld AR has further submitted that the assessee society is a religious institution and engaged only in the religious activity as managing temples. The source of income of the society is donation, rent and interest. These incomes are used to carry out day to day activity of temples maintained by the assessee society and maintenance of property of the institution. These activities of the society cannot be held as any business arrangement or trade activities. Further there was no profit motive behind the activity of the assessee society and the assessee has declared the income in the return of income under the "income from other sources". The Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of deduction of tax at source. Though, the payment in question to the contractor was required deduction of tax at source as per the provisions of Chapter XVII of the Act, however, the assessee has not incurred the said expenditure for its business activity but the activity of the assessee are only religious in nature. Further the Assessing Officer has also accepted the income of the assessee under the "income from other sources" as per the computation of income. The ld AR of the assessee has filed a copy of the computation of the income made by the Assessing Officer wherein the income of Rs. 4,42,080/- has been computed under the head "income from other sources". The Kolkata Benches of the Tribunal in the case of Pediatric Infectious Diseas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the sponsorship fees and the said journals having been issued to the members free of cost, the same cannot be treated as in the nature trade, commerce or business as envisaged in the proviso to section 2(15) and the income of the assessee from the said activity cannot be treated as its business income. I, therefore, find merit in the contention of the learned counsel for the assessee that the A.O. was not justified in reclassifying the income of the assessee from the activity of publication of journals as business income and in making a disallowance u/s 40(a)(ia) 5. In my opinion, the Ld. CIT(A) is also not justified in holding that the fact of the assessee being the charitable organisation is of no relevance for the applicability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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