TMI Blog2020 (8) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... wing grounds : 1. On the basis of facts and circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that the assessee is not eligible for exemption u/s 11 of the I.T.Act,1961. 2. On the basis of facts and circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that the assessee is rendering specific services to its member as well as nonmembers and charging fee from them which is liable to be taxed under the head Profit Gains of Business and Profession and as such, its activities are not in charitable nature. 3. On the basis of facts and circumstances of the case and in law, Ld. CIT(A) has erred in deleting the additions of Rs. 5,21,54,651/- by directing the AO to allow the exemption u/s 11 with all consequential benefits and also allowing the amount of ₹ 67,90,978/- accumulated under section 11(2). 4. On the basis of facts and circumstances of the case and in law, the Ld. CIT (A) has erred in holding that the activities of the assessee are charitable in nature and that assessee is eligible for exemption u/s. 11 of the I.T. Act, 1961 by ignoring the fact that principle of mutuality is not appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the amended provisions of section 2(15) of the I.T. Act, 1961. It was also held by the A.O. that since many members had given amounts more than ₹ 50,000/- and they would become beneficiaries as per Section 13(3)(b), exemption also stands withdrawn by applying provisions of Sections 13(1) and 13(2) of the I.T. Act, 1961. 3. Aggrieved, assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) threadbear examined the issue and allowed the claim of assessee under section 11 and deleted the addition of ₹ 5,21,54,651/-. The relevant observations of the Ld. CIT(A) at pages 37 and 38 of the Order is reproduced as under : 4.1.4. The case of the assessee is covered in the favour of the assessee by the orders of my Id. predecessors for the assessment years 2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011- 12 and 2012-13 by my own orders for assessment year 2013-14 and also by the orders of Hon'ble Delhi High Court in the assessee's own case for the assessment years 2006-07 2007-08 in ITA No.321/2016 an 355/2016. The departmental appeal for the assessment years 2008-09 2009-10 has been also dismissed by the Hon'ble Tribunal (supra) as also by the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Expenditure account the assessee had shown total receipts of ₹ 21,67,04,511. From the details furnished by the assessee, he noted that the income includes income from members and non-members as well. 3. During the course of assessment proceedings, the AO asked the assessee to explain as to why the receipts from charges received by the Chamber should not be considered as commercial in nature and why the receipts should not be hit by the provisions of section 2(15) of the IT Act, 1961. The AO noted that amendment has been made in section 2(15) of the Act w.e.f. A.Y. 2009-10 in case of general public utilities and they will no longer be enjoying charitable status if they are involved in carrying on of activities in the nature of trade, commerce or business or any activity rendering any service in addition to any trade, commerce or business for cess or fee or any other consideration in respect of nature of use or application or retention of income from such activity. He noted that the assessee society falls in the last category of general public utility as per the definition of section 2(15) and, in view of the above amendment, the society falls under the last category i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee s ground that Ld. AO wrongly referred to the provisions of section 13(1) 13(2) of the Income Tax Act. 5. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing. 6. We have heard the rival arguments made by both the sides, perused the orders of the authorities below and the paper book filed on behalf of the assessee. We find, identical issue had come up before the Tribunal in assessee s own case for A.Y. 2010-11. We find, the Tribunal, vide ITA No.1388/Del/2015, order dated 23rd May, 2018 at para 7 of the order upheld the order of the CIT(A) in allowing claim of exemption u/s 11 of the IT Act and dismissed the appeal filed by the Revenue by observing as under:- 7. The only issue for denying the exemption u/s.11 by the learned Assessing Officer is that in terms of proviso to Section 2(15) the assessee's activities are in the nature of trade and commerce or business. We find that first of all in the Assessment Years 2006-07 2007-08, the Hon'ble High Court after detailed discussion had held that assessee is eligible for claim of exemption u/s.11, vide judgment and order dated 19th October, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized that co-ordinate bench of ITAT at Delhi, vide its order dated 16-02- 2015 in the assessee's own case for the AYs 2008-09 2009-10 duly considered and adjudicated the said issue and another co- ordinate bench at Delhi vide its order dated 23-05-2018 while deciding the appeal pertaining to A.Y. 2010-11, respectfully followed the said judgment and nothing is brought on record by Ld. DR, contrary to the said judgments and/or filing of any appeal against the same . On the aforesaid consideration and observations, we do not find any infirmity, perversity or illegality in the order passed by the Ld. CIT (A), hence, the appeal of the Revenue-Department stands dismissed. 8. We find, the Tribunal, vide ITA No.5408/Del/2015, order dated 6th September, 2017, has upheld the order of the CIT(A) in allowing exemption u/s 11 and dismissed the appeal of the Revenue by observing as under:- 6. We have heard both the parties and perused the records, especially the impugned order. We find that Ld. CIT(A) has observed that the assessee is an association of professional and businessman to protect and promote the interest of its members. The income of the assessee is from member ..... X X X X Extracts X X X X X X X X Extracts X X X X
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