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TMI Blog2018 (7) TMI 1890X X X X Extracts X X X X X X X X Extracts X X X X ..... 999. Admittedly, the objects of the society include promotion of golf in India, fostering and maintaining a high standard of amateur golf in India, conducting the Amateur Golf Championship of India and other golf championships and promoting and arranging golf matches and competitions in India and abroad. 2.1 The return of income was filed at Nil and the case was selected for scrutiny subsequently. During the course of assessment proceedings, the Assessing Officer observed that the assessee had received sponsorship fees of Rs. 1,70,69,931/- during the year and, accordingly, he was of the opinion that the assessee was generating income by way of receiving sponsorships. The Assessing Officer required the assessee to show cause as to why the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, looking into the facts of the case, we are proceeding to decide the appeal on merits ex parte qua the assessee/respondent. 4. The Ld. Sr. DR read out extensively from the assessment order and argued that as per the new definition of charity in section 2(15) of the Act, charitable societies with the object of general public utility cannot carry out any activity which is in the nature of trade, commerce or business or is rendering any service in relation to any trade, commerce or business. The Ld. Sr. DR submitted that the activity of the assessee in taking sponsorship has the characteristic of business and since the assessee's case falls under the last limb of section 2(15) i.e. the advancement of object of any other general public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aidan, etc, the assessee was rendering service to a large number of traders and industrialists in relation to trade, commerce and business and was, therefore, hit by the expanded list of activities contained in the proviso to Section 2(15). It was further observed By the Ld. DGIT (E) that the service of allotting space and other amenities like water, electricity and security, etc. to the traders to conduct their exhibitions fell within the ambit of any activity of rendering any service in relation to trade, commerce or business. The assessee filed a writ petition before the Hon'ble Delhi High Court claiming that the First Proviso to section 2(15), as amended by the Finance Act, 2008, was arbitrary and unreasonable and violative of Article 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is only a definition clause. The expression "charitable purpose" appearing in Section 2 (15) of the said Act has to be seen in the context of Section 10(23C)(iv). When the expression "Charitable Purpose", as defined in Section 2(15) of the Act, is read in the context of Section 10(23C)(iv) of the said Act, we would have to give up the strict and literal interpretation sought to be given to the expression "charitable purpose" by the revenue. In conclusion, we may say that the expression "charitable purpose", as defined in Section 2(15) cannot be construed literally and in absolute terms. It has to take colour and be considered in the context of Section 10(23C)(iv) of the said Act. It is also clear that if the literal interpretation is g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ily by a desire or motive to earn profits, but to do charity through the advancement of an object of general public utility, it cannot but be regarded as an institution established for charitable purposes. Thus, while we uphold the Constitutional validity of the proviso to Section 2(15) of the said Act, it has to be read down in the manner indicated by us." 5.1 We find that the Ld. CIT (A) has decided the issue in favour of the assessee by relying on the ratio laid down by the Hon'ble Jurisdictional High Court. We further note that even during the course of proceedings before us and even on being specifically asked by the Bench, the Ld. Sr. DR could not point out any other judgment to the contrary in this regard. It is undisputed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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