TMI Blog2022 (8) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... roduce the aims and objectives of the association for better understanding of the functions of the association. PCIT said that Any receipt which is a direct consequence of its core activities will always form part of income from business and profession, irrespective of whatever name is lent to the receipt does not hold good and is according to our considered opinion a mere conjecture and surmises. The receipts of the assessee under various heads are those collected from its members namely Life Member, Regular Member, Associate Member and fellow Member. As admittedly accepted that such association requires fund for the purpose of carrying out its activities and such funds can be raised by charging its member various fees such as admissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... she ought not to have passed the said order u/s 263 of I.T. Act, 1961. 2. The Appellant craves leave to add, amend or alter the above grounds of appeal at or before the time of hearing. Additional Grounds 1. Without prejudice to the earlier grounds, it is submitted that in the facts and the circumstances of the case, and in law, even on merits, no such directions were called for. 2. The Appellant craves leave to add, alter, delete or modify all or any the above ground at the time of hearing. 2. The brief facts of the case are that the assessee is an AOP and registered union under Trade Union Act, 1926. The assessee being a Trade Union of film and television writers is engaged in the activity of regulating the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted u/s 10(24) of I.T. Act, 1961 being a Trade Union. The assessee stated that such receipts were categorical under the head Income from other sources as it was not carrying out any business for profit. To support its stand, the assessee had also quoted the order of Ld. CIT(Appeals)-III, GST CX, Mumbai, which has held the assessee to be a Trade Union and not a Business Entity. 4. The contention of the assessee did not find favour and the Ld. PCIT held that from the gross receipts of Rs. 1,44,08,286/- received by the assessee under 20 heads mentioned below except for the last two heads i.e. Interest Income from saving account and Fixed Deposit, the other receipts are in the nature of business income and will not attract the exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 66,172/- 16. Subscription fees 10,89,398/- 17. Compensation for DSC 15,000/- 18. Sundry Balances W/O 12,018/- 19. Bank Interest (Saving A/c) 50,875/- 20. Bank Deposit (Fixed Deposit) 25,72,811/- Total 1,44,08,286 5. The Ld. PCIT emphasized that these receipts are direct result of the core activity of the assessee which are in the nature of professional /business activity. The Ld. PCIT added the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er understanding of the functions of the association. They are as follows:- i) To foster brotherhood and unity amongst the writers working in the film industry and all other Audio Visual Media by bringing them together under the banner of FILM WRITERS' ASSOCIATION. ii) To regulate the relations of its members with the employers. iii) To safeguard the interests, right and privileges of its members in all matters relating to their employment and living conditions. iv) To prevent any reduction in wages and remuneration of its members. v) To promote and maintain high standard of professional conduct and integrity. vi) To settle disputes between the employer and its members. vii) To secure compensation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd fellow Member. It is admittedly accepted that such association requires fund for the purpose of carrying out its activities and such funds can be raised by charging its member various fees such as admission fees, admission form fee, confederation fees, constitution book fees, ID card fees, Life membership fee, registration fee, etc. This undoubtedly will not fall under the category of business activity as there are no profit motive in such association. 9. We would like to place reliance on the decision of Hon ble Bombay High Court cited by the Ld. AR in the case of Mario Raposo Vs. H. M. Bhandarkar and Ors (Writ Petition No. 3425 of 1993), wherein the factual background varies from the present case in hand, the intention of trade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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