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TMI Blog2020 (12) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... ring any service in relation to any trade, commerce or business for a cess or fee shall not be charitable if receipt from such activities is more than 25 lacs during the year. 3. The assessee is a society registered u/s. 12 A of the Act and is also notified u/s. 80G(5)(vi) of the Act. The main objects of the society as per MOA are as follows :- (a) In conformity with its name, the society is establish to provide professional, technical and management assistance to various agencies engaged in rural development and related action programmes. (b) To offer know how advice, and technical guidance in the field of agriculture, animal husbandry, water resources, forestry, new and renewable energy sources, rural industries, formal and non formal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. While scrutinizing the return of income the AO noticed that the case of the assessee is directly covered by the proviso to section 2 (15) of the Act. Accordingly the AO was of the firm belief that the assessee is not entitled for any exemption, the AO completed the assessment by denying exemption u/s. 11 and 12 of the Act. 5. The assessee carried the matter before the CIT(A) and strongly contended that it is very much eligible for the claim of the exemption as it is engaged in charitable purpose as per relevant provisions of law. 6. After considering the facts and the submissions the CIT(A) found on identical facts in A.Y. 2011-12 his predecessor allowed the appeal of the assessee and directed the AO to allow exemption u/s. 11 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the findings of the CIT(A). The relevant findings read as under :- 7. We have heard rival submission of the parties and perused relevant material on record, including paper-book filed by the assessee. According to the Assessing Officer, the activity of the assessee falls under "advancement of general public utility" , and the assessee being engaged in business of providing services against fee, the activity is out of domain of charitable purpose in view of the proviso to section 2(15) of the Act. The contention of the assessee before us is that the activity of the assessee falls under the main limb of definition of the charitable purpose of relief to poor. The alternative contention of the assessee is that even if the activities of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly applicable as. the assessee is not involved in any trade, commerce or business. The assessee is very much a charitable society and is working for the welfare of the poor and rural people and is very much eligible for exemption u/s 11(1) and the AO has not made out any specific case to show that the assessee is involved in any trade, commerce or business. 4.5 Recently the Hon'ble Delhi High Court in the case of India Trade Promotion Organization vs. DGIT(E), 53 Taxmann.com 404 (Delhi) 2015 (order dated 22/01/2015) has upheld the constitution validity of the proviso of section 2(15) which was under challenge being discriminatory in view of the Article 14 (Equality before law) of the Constitution of India but the Hon'ble High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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