TMI Blog2020 (12) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or business and as such the proviso to section 2(15) is not applicable. Exemption under section 11(1) is allowed to the assessee. Accordingly, the Assessing Officer is directed to allow exemption under section 11, with all the consequential benefits. Ground of the appeal are allowed. - ITA No. 2826/DEL/2017 - - - Dated:- 8-12-2020 - Shri N.K. Billaiya, Accountant Member And Ms. Suchitra Kamble, Judicial Member For the Revenue : Smt. Sushma Singh, CIT DR. For the Assessee : Sh. K. V.S. R. Krishna, CA. ORDER PER N. K. BILLAIYA, AM: 1. This appeal by the revenue is preferred against the order of the CIT(A)-40, Delhi dated 03.02.2017 pertaining to A.Y. 2012-13. 2. The solitary grievance of the revenue is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Where they may work on a short or long term basis. (e) To do planning and formulation of development projects independently or in association with other agencies, for implementation by itself or through other agencies engaged in development programs. (f) To assist development agencies at the grass roots to effectively utilize physical assets required for the purpose of rural development and evolve systems to ensure equity and justice in their utilization. (g) To monitor the progress of development projects, conduct evaluation, maintain information systems and report on its own development projects, or projects of other agencies at their request. (h) To do all such other lawful acts deeds or things either alone or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee. Accordingly, the Assessing Officer is directed to allow exemption under section 11, with all the consequential benefits. Ground Nos. 1 to 13 of the appeal are allowed. 7. Before us the counsel for the assessee directed our attention to the order of the Tribunal in A.Y. 2011-12 in ITA No.3266/Del/2015 and pointed out that the Tribunal has upheld the order of the CIT(A) in A. Y. 2011-12. It is the say of the counsel that the present appeal is directly covered in favour of the assessee and against the revenue. 8. Per contra the DR fairly conceded that the issues are covered in favour of the assessee. 9. We have carefully considered the orders of the authorities below. We find that in A.Y.2011-12 the CIT(A) allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... controvert the fact that the assessee has not charged any fee from the clients except the cost of project actually incurred. In the sanction letter of grant to the assessee, there is mention of supervision or monitoring of the activities by the donor, but that in itself is not sufficient to hold that any profit motive is involved. It is quite normal that the donor want to verify whether the grants have been incurred for the intended purpose, which in our opinion, is in any manner does not establish that the activities of the assessee is business activity. The Ld. CIT(A) following the decision of the Hon ble Delhi High Court has decided the issue in favour of the assessee observing as under: 4.4 I have considered the order of the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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