TMI Blog2022 (11) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... and understanding of law, proviso to 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 - Appeal of the Revenue is dismissed. - ITA.No.7678/Del./2018 - - - Dated:- 10-11-2022 - Shri Anil Chaturvedi, Accountant Member And Shri Anubhav Sharma, Judicial Member For the Revenue : Shri Anuj Garg, Sr. D.R. For the Assessee : Shri Hiren Mehta, C.A. ORDER PER ANIL CHATURVEDI, A.M. : This appeal filed by the Revenue is directed against the order of the Ld. CIT(A)-40, Delhi, dated 20.09.2018 in Appeal No.CIT(A), Delhi-40/10114/2017-18 relating to the A.Y. 2015-2016. 2. Briefly stated facts of the case are that the assessee organisation is register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 2(15) of the I.T. Act, 1961. The A.O. noted that assessee had received various sponsorships from Samsung India Electronic Pvt. Ltd., Shiv Naresh Sports Pvt. Ltd., Amul etc. According to A.O. the sponsorship agreements entered by the assessee were of the business nature as the income from the two far exceeds the expenditure and the income exceeds Rs.25 lakhs. The assessee was, therefore, asked to furnish the explanation as to why the activities received from sponsorship agreements with various sponsors be not treated as business venture in view of the proviso to Section 2(15) of the I.T. Act, 1961. The submissions made by the assessee were not found acceptable to A.O. The A.O. held that the income from sponsorship agreements with var ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the Ld. CIT(A), the Revenue is now in appeal before the Tribunal. 7. Before us, the Ld. D.R. supported the order of A.O. 8. The Learned Counsel for the Assessee, on the other hand, relied on the order of the Ld. CIT(A) and further submitted that for the A.Y. 2011-12, in assessee s own case the Revenue had filed an appeal before the Tribunal and the Tribunal vide order dated 19.07.2018 in ITA.No.1130/Del./ 2016, dismissed the appeal of Revenue. He further submitted that the order of ITAT has also been upheld by Hon ble Delhi High Court. He placed on record the copy of the aforesaid orders. He, therefore, submitted that the grounds of Revenue needs to be dismissed. 9. We have heard the Learned Representative of both the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J. Baig speaking for the Apex Court thus said that: If the profits must necessarily feed a charitable purpose, under the terms of the trust, the mere fact that the activities of the trust yield profit will not alter the charitable character of the trust. The test now is, more clearly than in the past, the genuineness of the purpose tested by the obligation created to spend the money exclusively or essentially on charity . 27. The test for carrying on of any activity in the nature of trade, commerce or business as mentioned in the first proviso to Sec. 2(15) would be satisfied if profit making is not the real object. The Hon'ble Delhi High Court in the case of ICAI Vs Director General of Income Tax (Exem) 347 ITR 99 had the oc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been pursuing since past many decades. In our humble opinion and understanding of law, proviso to 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. 9.1. We further find that against the aforesaid order of ITAT, the Revenue preferred an appeal before the Hon ble jurisdictional Delhi High Court in ITA.No.963/2019 and CM Appeal.No.50939-50940/2019 and the Hon ble Delhi High Court vide order dated 26.11.2019 upheld the order of the Tribunal. 9.2. Before us, no distinguishable facts have been brought by the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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