TMI Blog2022 (9) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... rom publishers as income from business by invoking the provisions of section 11(4A).The assessee has not brought any material to rebut the finding of the learned CIT(Appeals). Therefore, no reason to interfere in the finding of learned CIT(Appeals). The same is affirmed. Grounds raised in appeal are rejected. - ITA No. 4521/DEL/2019 - - - Dated:- 9-9-2022 - SHRI KUL BHARAT , JUDICIAL MEMBER Appellant by : None Respondent by : Shri Om Prakash , Sr. DR ORDER PER KUL BHARAT , JM : This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals)-40, Delhi dated 08.03.2019, pertaining to the assessment year 2014-15. The assessee has raised following grounds of appeal: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given any other address to the Registry. Under these circumstances the appeal is taken up for hearing in the absence of the assessee and is being decided on the basis of material available on record. 3. The only effective ground in this appeal is against sustaining the addition of Rs. 36,35,531/- made on account of treating the voluntary donations received as business receipts of the assessee. 4. Facts giving rise to the present appeal are that the case of the assessee was selected for scrutiny assessment and the assessment u/s 143(3) of the Income-tax Act, 1961 (in short the Act ) was framed vide order dated 27.12.2016. Thereby the Assessing Officer taxed the amount of Rs. 36,35,531/- as income from business and profession as per pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia (supra) wherein the Hon'ble Court observed that quantum of fee charged, economic status of the beneficiaries who pay, commercial value of benefits in comparison to the fee, purpose and object behind the fee etc. are the factors which decide whether the activity is business or not. The Assessing Officer has examined the economic status of the publishers who provided the books, the commercial value of the benefit of the sale of books to the assessee, etc. The Assessing Officer has very categorically brought out the aspects regarding the money received from various publishers in Paras 4.1.1 to 4.1.6 of the assessment order in the form of enquiries made by way of issue of notice under section 133(6) and the replies received in response ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Further, service tax was also charged on the amount so paid by MacMillan Publishers. In case of Dhanpat Rai Publishers, it was noted from the letter submitted that total donations given during year were Rs. 5,55,700/- out of which an amount of Rs. 5,26,500/- had been given to the assessee. It was also noted from the details furnished that Dhanpat Rai Publishing Co. Ltd. had not claimed deduction under section 80G on the donation paid to the assessee. Reference was also given of point No. 6 of the reply wherein it was noted that their salesperson visits various schools and educational institutions and gave specimen of the books and based on that the books were recommended. 4.2.3 In the case under consideration the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact that proceeds of a business activity have been utilised for charitable purpose do not make the business activity incidental. The Assessing Officer has also examined whether this activity is incidental to the activity of the trust. It has been noted that those activities are incidental which are offshoot of the main activities or are an inherent by-product of the principal activities. 4.2.6 The expression 'incidental to the attainment of the objectives' is significant in deciding the operation of section 11(4A). The word incidental is not defined in the Income Tax Act, 1961. In common parlance, this expression is used to denote ancillary or supportive which in turn indicates that there is one or more above it which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer in the assessment order, it is held that the activity of receiving commission for prescribing the books of the publishers can in no way be stated to be an incidental activity. 4.2.8 The appellant has relied on various case laws which are distinguishable on facts inasmuch as that the Assessing Officer has not doubted the charitable activities of the assessee. From the computation of income it is seen that receipts from publishers which have been shown as donation have been held to be commission for prescribing books of the publishers and it is in respect of these receipts that exemption has been denied by invoking the provisions of section 11 (4A) . It is also not the case of the Assessing Officer that donation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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