TMI Blog2019 (10) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 5 lacs cannot be taxed. Hence, we hold that these two items are not taxable and assessee is allowable for exemption under section 11 of the Act. As we have already held in the first ground that the assessee is charitable institution and not hit by the provisions of section 2(15) of the Act i.e. the proviso, hence, we allow these grounds of assessee. - ITA No. 6687/Mum/2016 - - - Dated:- 6-5-2019 - Sri Mahavir Singh, JM And Sri NK Pradhan, AM For the Appellant : Shri Abhishek Tilak, AR For the Respondent : Shri B.S. Bist, DR ORDER PER MAHAVIR SINGH, JM: This appeal filed by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-1, Mumbai [in short CIT(A)], in appeal No. CIT(A) I/E-I (129)/2015-16, dated 18.08.2016. The Assessment was framed by the Income Tax Officer, ward -1(1), Mumbai (in short ITO/ AO ) for the A.Y. 2012-13 vide order dated 25.03.2015 under section 143(3) of the Income Tax Act, 1961 (hereinafter the Act ). 2. The first issue in this appeal of assessee is against the order of CIT(A) denying the claim of exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clauses and noted that none of the objects are in any way in the nature of carrying on any trade, commerce or business or rendering any service thereto. During the course of proceedings before tribunal, it was claimed by the assessee that assessee being a Trade Association of Advertising agencies is not in any way carrying on any activity in the nature of trade, commerce or business nor any activity of rendering any service in relation to any trade, commerce or business for a cess or a fee or any other consideration. We find from the facts of the case that Assessing officer has held the interest amount of ₹ 30,62,564/- as taxable on the premise that the assessee is hit by the first proviso to section 2(15) i.e. to say rendering any service in relation thereto. The only reason contained in paras 1 to 9 of the impugned order is that, if the assessee is not a mutual benefit society ..to be carrying on charitable purpose, by virtue of the newly inserted proviso. Regarding Goa Fest, it was claimed that in furtherance of the objects of this Trade Association, only once a year the assessee holds a fest in Goa and invites eminent speakers from the international advertising world as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010 event falls within the ambit of Section 2(15) of the Act and since, the assessee has complied with the provisions of Section 11 of the Act, it should be allowed exemption with respect to surplus income earned from conducting the event. Assessee also relied upon several case laws 6. The one of the case law cited by ld counsel for the assessee is apt for citation here and that is the decision of Hon ble Delhi High court in the case of CIT (Exemption) vs the Fertlisers Association of India in ITA No.964 and 966 of Delhi/2017 dated 113.11.2017, wherein, exactly on identical facts, Hon ble Delhi High Court relying on various case laws allowed the claim of exemption under section.11 considering the proviso of section 2(15) of the Act. Hon ble Delhi High Court observed as under: The assessee Association is a non-profit and non-trading company representing the interests of fertilizer manufacturers, distributors, importers, equipment manufacturers, research institutes and suppliers of inputs, registered under Section 25 of me Companies Act, 1956. In scrutiny assessment for AY 2010-11, the AO was of the opinion that the exemption under Section 2(15) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the relevant decisions such as Surat Art Silk Cloth Manufacturers Association (supra), CIT vs. Andhra Chamber of Commerce55 ITR 722 and India Trade Promotion Organization (supra), the ratio of which were correctly applied, this court is of the opinion that no substantial question of law arises. 7. From the above decision of Hon ble Delhi High Court and the fats of the present case and discussion carried out above regarding facts of the present case, we are of the view that the receipts regarding Goa Fest 2010 and interest received on money deposited is exempt under section.11 of the Act. The orders of the lower authorities are set aside and appeal of the assessee is accordingly allowed. 4. When these facts were confronted to the learned Sr. Departmental Representative, he could not controvert the fact that the issue is covered by Tribunals decision in assessee s own case for earlier assessment year. As the facts are identical and issue is same, respectfully following and consistently taking view, we allow the claim of exemption to the assessee under section 11 of the Act. This issue of the assessee s appeal is allowed. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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