9911796707
TMI Blog2018 (8) TMI 2099X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition on account of income in respect of depreciation in view of the case laws Hon'ble Supreme Court in the case of Escorts & others reported in 199 ITR 43 and recent decision of the Hon'ble Delhi Court in the case of DIT(E) Vs. Charanjiv Charitable Trust dated 18.03.2014. 4. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing." 3. The assessee organization was registered under Societies Act, 1860 on 12/6/1965. It is registered u/s 12A of the Income Tax Act vide Registration granted by the DIT (e) vide order dated 20/8/2002 w.e.f. 27/2/2002. The Indian Olympic Association is an Apex Sports Body in India which represented the country and is a member of International Olympic Association. Association of different disciplines in sports in India are members affiliated to IOA, the activity of the association includes organizing the sports activities under the AEGIS of Ministry of Youth Affairs and Sports of Government of India and International Olympic Association. Utilization certificates were regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n) Vs. M/s Inderprastha Cancer Society held that when an income is required to be applied, accumulated or set apart for application, then for such purposes, the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of an asset, acquisition of which has been claimed as application of income under this Section, the same or any other previous year. 7. The Ld. AR submitted that this issue has been decided in favour of the assessee in the assessee's own case for Assessment Year 2011-12 where in the Department has filed appeal before the Tribunal order dated 19/7/2018 being ITA No. 1130/Del/2016. 8. We have heard both the parties and perused all the material available on record. It is pertinent to note that in Assessment Year 2011-12 similar facts were contested before the Tribunal in assessee's own case by the Revenue. The Tribunal held as under:- "15. We have given thoughtful consideration to the orders of the authorities below. The only reason for denying the claim of exemption is proviso to section 2(15) of the Act. 16. Section 2(15) as it stood in the statute after the repeal of the 1922 Act read as under: "Section 2(15) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponsorship contract with Samsung India Electronics Pvt. Ltd constitutes carrying on of any activity in the nature of trade, commerce or business, which activities the trust is carrying on prior to the amendment brought by Finance Act, 1983. "General" means pertaining to whole class, "Public" means the body of people at large including any class of the public, "Utility" means usefulness. 20. Therefore, the advancement of any object of benefit to the public or a section of the public as distinguished from individual and group of individuals would be a charitable purpose. An object of public utility need not be an object in which the whole of the public is interested. It is sufficient if well defined section of the public benefits by the objects which means that the expression "object of general public utility" is not restricted to objects beneficial to the whole mankind. An object beneficial to a section of the public is an object of general public utility. In the case of CIT Vs Swastik Trading Co. Ltd. 113 ITR 852, the Hon'ble Gujarat High Court has held that establishing and maintaining Gaushalas and Panjrapole constitutes charitable purpose. 21. The Hon'ble Finance Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Each case would therefore be decided on its own facts and no generalization is possible. 24. Thus, even the CBDT does not lay down any guidelines for determining whether the entity is carrying on any commercial activity. Each case would therefore to be decided on its own facts and as the CBDT has clarified generalization is not possible. 25. Coming back to the objects of the impugned association, the fundamental or dominant function of the association is to represent the country in international forums. Associations of different disciplines in sports in India are members/affiliated to IOA. In furtherance of its activities, the association not only requires grants from the Government, but on many occasions sponsorships. This cannot be an activity by itself amounting to carrying on of any business, trade or commerce. The impugned association is engaged in multi level activities of diverse nature but the primary and dominant activity is promoting sports activities not only in India but also in international forum. The impugned association would not lose its character of charitable purpose merely because some sponsorship was accepted. 26. In the case of Sole Trustee, Loka Shiksha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o section 2(15) of the Act is not applicable to the facts of the case and the assessee-association deserves benefit u/s 11/12 of the Act. We, therefore, do not find any reason to interfere with the findings of the first appellate authority. Ground No. 1 is accordingly dismissed. 27. Next grievance relates to allowance of depreciation. 28. This issue is now well settled in favour of the assessee and against the Revenue by the judgment of the Hon'ble Supreme Court in the case of Rajasthan and Gujarat Charitable Foundation 402 ITR 441 wherein the Hon'ble Supreme Court has held that even though the expenditure incurred for acquisition of capital assets was treated as application of income for charitable purposes u/s 11A(1) of the Act, yet depreciation would be allowed on assets so purchased. Ground No. 2 is, accordingly, dismissed. 29. Grievance raised vide Ground No. 3 is related to and consequential to the grievance raised vide Ground No. 1. 30. Since vide Ground No. 1 we have directed the AO to allow benefit of exemption u/s 11/12 of the Act, the AO is directed accordingly. 31. In the result, the appeal of the Revenue in ITA No. 1130/DEL/2016 is dismissed.:" The f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
