TMI Blog2019 (3) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the income tax proceedings, but, rule of consistency shall have to be applied by the Income Tax Authorities. We rely upon decision of the Hon’ble Supreme Court in the case of Radha Soami Satsang [1991 (11) TMI 2 - SUPREME COURT]. CIT(A) examined the entire issue in detail and have given a specific finding of fact in favour of the assessee that the assessee is engaged in the charitable activities and that the amount in question have been spent for charitable activities. Even if some amount have been received by assessee, that was received for charitable purposes only and no personal gain have been obtained by the assessee company. The finding of fact recorded by the CIT(A) have not been rebutted through any evidence on record. We, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haritable by assessee, these projects are not for undertaking any charitable activity but for providing ancillary professional services to the agencies/Government Departments in undertaking the charitable activities. 2. Briefly the facts of the case are that assessee is a Company registered under section 12AA of the Income Tax Act. The main objects of the assessee company are as under: (i) To promote sustainable socio-economic development, poverty alleviation, livelihood creations development, food security, environment protection, natural resources management conservation, not with the motive of profit. (ii) None of the objects of the Company will be carried out on commercial basis. 3. The A.O. had disallowed exemption un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E) Pvt. Ltd. as consultation fee was not justified in connection with the services rendered for the project Sector Wide Approach to Strengthening Health in Bihar (SWASTH) (20% thereof, ₹ 1,94,10,772 disallowed by the AO). (f) that the sum of 4,18,85,309 in Pound Sterling received in connection with the above project was by way of fees to provide advice to the Department of Health Family Welfare in Orissa Bihar and therefore, should be assessed as professional fee not connected with any charitable work. (g) that the receipts (Rs.2,43,00,764) in connection with the project Community 7 Health Care Management Initiative (CHCMI) should be treated as fees for professional technical services rendered to the State Govt. not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 12AA of the Income Tax Act, 1961. It is not a case which is hit by the First proviso to Section 2(15) of the Income Tax Act, which applies only to the Head Advancing of any other object of general utility as explained in Board Circular Dated 19th December 2008. Even if the assessee rendered assistance to other organizations in the field of charitable work, its activities cannot be termed as non-charitable as it makes no difference whether the charitable work is carried out on its own project or by way of assistance to the projects of other parties. Therefore, observations of the assessing officer not approved the Ld. CIT(A). The Ld. CIT(A) further observed that the violation of FCRA provision is irrelevant for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Enterprises (IPE) Private Limited., Options U.K. and CUIK. The sum of ₹ 9,70,53,866/- was paid to IPE as consultancy fees under the agreement and 20% out of the same were disallowed by Assessing Officer without any basis. The same addition was, therefore, deleted. The Ld. CIT(A) after going through the details filed by the assessee found that assessee was engaged in charitable activities on the various projects. Further, there is no finding that assessee though charged fees, was involved in private gain. The Ld. CIT(A), therefore, set aside the order of Assessing Officer and held that assessee is entitled for exemption under section 11 of the Income Tax Act, 1961. The appeal of assessee has been allowed. 6. We have heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication to take a contrary view in the present appeal. Further, the Ld. CIT(A) examined the entire issue in detail and have given a specific finding of fact in favour of the assessee that the assessee is engaged in the charitable activities and that the amount in question have been spent for charitable activities. Even if some amount have been received by assessee, that was received for charitable purposes only and no personal gain have been obtained by the assessee company. The finding of fact recorded by the Ld. CIT(A) have not been rebutted through any evidence on record. We, therefore, do not find any error in the order of the Ld. CIT(A) in allowing exemption under section 11 of the Income Tax Act, 1961. We confirm the Order of the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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