TMI Blog2020 (3) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. In view of above, we do not find any infirmity in the order of the Ld. CIT(A), hence, uphold the same by respectfully following the Tribunal s order above and reject the grounds raised by the Revenue. - I.T.A. No. 2087/DEL/2017 - - - Dated:- 6-3-2020 - Shri H.S. Sidhu, Judicial Member And Shri N.K. Billaiya, Accountant Member For the Assessee : Sh. K.V.S.R. Krishnan, CA For the Revenue : Ms. Rakhi Vimal, Sr. DR. ORDER PER H.S. SIDHU, JM Revenue has filed the present appeal against the impugned order dated 30.01.2017 passed by the Ld. CIT(A)-40, New Delhi relating to assessment year 2012-13 on the following grounds:- 1. On the facts and in the circumstances of the case and in law, Ld. CIT(A) has erred in law in ignoring that though the objects of the assessee seems to be charitable in nature, but the activities carried out by the assessee which resulted in the profits/ surplus are commercial in nature. 2. The appellant craves leave to add, to alter or amend any ground of appeal raised before at the time of hearing. 2. The brief facts of the case are that assessee filed its return of income declaring nil income on 29.09.2012 for assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... common fund, the principle of mutuality would not be attracted. The Assessing Officer discussed the amendment to the proviso to section 2(15) of the Act and CBDT Circular dated 19.12.2008 and completed the assessment by invoking the proviso to section 2(15) by assessing total income of ₹ 2,23,63,070/- u/s. 143(3) of the Act vide order dated 11.3.2015. Against the assessment order dated 11.3.2015, assessee appealed before the Ld. CIT(A), who vide his impugned order dated 30.1.2017 has partly allowed the appeal of the assessee by holding that AO is directed to allow the benefit of section 11 with consequential benefits. Aggrieved with the impugned order dated 30.1.2017, the Revenue is in appeal before the Tribunal. 3. At the time of hearing, Ld. DR relied upon order passed by the AO and the reiterated the contention raised in the grounds of appeal of the Revenue and requested that appeal of the Revenue may be allowed. 4. On the contrary, Ld. Counsel for the assessee relied upon the order of the Ld. CIT(A) and stated that Ld. CIT(A) has passed a well reasoned order on the basis of the facts and circumstances of the case and in accordance with provisions of law. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is an organization constituted by the Ministry of Textiles and clearly is not for profit as it can be seen that the Executive Committee is wholly constituted by the Government officers mainly consisting of the MOs of Textiles related department in different states and headed by the DC Handloom, Ministry of Textiles. It is promoting the handloom sector by procuring the orders from all Government departments which have the demand and giving it to the member society. Thus it is a nodal and implementing agency of the Government and not a society for the purpose of making any profit or doing business. Further, it organizes exhibitions to provide a platform to 'weavers across the country. The AD has apparently not considered the nature of the activities and the objectives of the society and merely disallowed the benefit of Section 11 by stating that the activities do not fall under the first five limbs of Sec 2(15) that principle of mutuality does not apply. The case of ITPO (2015) 371 ITR 333 of Delhi High Court applies to this case also, where it was adjudicated that where institution is not driven by motive to earn profit but to do charity through the advancement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide order dated 27.3.2019 in assessee s own case has observed as under:- 5.3 Evidently, the activity of the assessee are of advancement of any other object of the general public utility, which falls under the definition of the charitable purposes defined under section 2(15) of the Act. But the contention of the Assessing Officer is that said objet of general public utility shall not be charitable because the assessee is engaged in the activity in the nature of trade, commerce or business or rendering any service in relation to any trade, commerce and business for cess or fee. We find that activity of the assessee are primarily motivated with the objective of promoting handloom sector in India and said activity are not for gain or profit of an individual. The executive committee of the Society also consist of all government officials with no motive of profit sharing or personal interest. The member subscription is received by the assessee in proportion of the supply by the agency and the rate decided. The said subscription fee received cannot be equated with the cess or fee against services rendered. We are of the view that the Assessing Officer has not appreciated the activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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