TMI Blog2019 (10) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... infirmity in the order of the Ld. CIT(A), therefore, we uphold the same and reject the grounds raised by the Revenue and accordingly, dismiss the appeal filed by the Revenue. - ITA NO. 4984/DEL/2015 - - - Dated:- 17-9-2019 - Shri H.S. Sidhu, Judicial Member And Shri Anadee Nath Misshra, Accountant Member For the Assessee : Shri Aseem Chawla, Adv. Sh. Ashish Dhunna, CA For the Department : Shri Anil Kumar Sharma, Sr. DR. ORDER PER H.S. SIDHU, JM: This appeal by the Revenue is directed against the order passed by the Ld. CIT(A)-40(Exemption), New Delhi in relation to assessment year 2011-12 on the following grounds:- On the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee appeared and furnished the books of accounts which were examined by the AO. 2.1 The assessee-society during the year under consideration shown its activities in two parts centered at Delhi and Orissa. For the Orissa, part, assessee has submitted Audit Report in Form 3CB and 3CD and the nature of business was shown as printing and publication of newspaper and books. For the Delhi part, the assessee has shown various activities such as running of urban / rural / slum development centres, balwaris, primary / senior schools, health centres, working women s hostel old age centres. Etc. Assessee is also registered u/s. 12A of the Act vide order dated 13.09.1973 and also registered u/s 80G of the Act vide Registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... especially in the computation of income at para 10 of the assessment and completed the assessment u/s. 143(3) of the Act vide its order dated 25.3.2014 for the assessment year 2011-12. Aggrieved with the assessment order, the assessee appealed before the Ld. First Appellate Authority who vide his impugned order dated 29.5.2015 allowed the appeal of the assessee by respectfully following the various judgments delivered by the Hon ble Supreme Court of India and Hon ble Jurisdictional High Court as well as on the facts of the case of the assessee. The assessee-society was founded in 1921 by the fire brand freedom fighter late Shri Lala Lajpat Rai (1865-1928) during the freedom struggle for the nation building, on the basis of earlier assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nerating income from publishing advertisements in its newspapers. Therefore, the activities of the assesee are commercial in nature, hence, AO has rightly held that the assessee falls under the last limb of section 2(15) and hit by this section and therefore, is not entitled for any benefit of exemption u/s. 11 and rightly made the additions in dispute. However, the Ld. CIT(A) has wrongly allowed the appeal of the assessee which needs to be set aside and accordingly revneue s appeal may be allowed. 4. On the contrary, Ld. Counsel for the assesee relied upon the order of the Ld. CIT(A) and stated that the assessee is running printing newspapers not for the profit purposes and is only for charitable purpose. He s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derives significant receipts from the activity of selling of newspapers, but all the receipts from the said newspaper activity are utilized solely towards the charitable initiatives undertaken on a PAN India wide basis and its day to day running and the balance if any is transferred to the General Fund/ Accumulated Surplus or Deficit which is duly accounted for in the Audited Balance Sheet of the Assessee. He further submitted that if the driving force is not the desire of earn profits but to do charity, the exception carved out in the first proviso to section 2(15) of the said Act would not apply. He further submitted that AO has inter alia alleged that the receipts on account of profits from newspaper publication have been earned in a sys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Ld. CIT(A). 5. We have heard both the parties and perused the records especially the impugned order, Paper Book filed by the Assessee and the case laws relied therein as well as the relevant provisions of the Act on the issue in dispute. We find considerable cogency in the contention of the Ld. Counsel for the assessee that the assesse is a charitable institution and mere receipt of fees and income etc. cannot be said that the assessee is involved in any trade, commerce or business. The assessee is carrying the mandate of the Will of Late Shri Gopa Bandhu Dass in running the printing press and the newspaper and the income so generated is used for charitable purposes and apparently there is no profit motive i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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