TMI Blog2023 (11) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... nterpreting charity under section 2(15) by holding that law declared in its judgment had to be understood in context that they were applicable for assessment years in question, however, future applications had to be understood in context for assessment years which were not called upon and accordingly law declared in said judgment would be applicable, as per facts of each such assessment year. Hence simply on the judgment of Hon ble Supreme Court in the case of Ahmedabad Urban Development Authority, supra, the revision is not possible. We also noted from the revision order apart from that the CIT(Exemption) has not at all deliberated how the assessee has violated the proviso to the provision of section 2(15) of the Act and how the AO has not examined the issue. We could not find anything which proves that there is violation of the proviso to provision of section 2(15) of the Act. Hence, we quash the revision order and allow the appeal of assessee. - Shri Mahavir Singh, Vice President And Shri Manjunatha.G, Accountant Member For the Appellant : Shri R. Lakshmi Ratan, Advocate For the Respondent : Shri R. Clement Ramesh Kumar, CIT ORDER PER MAHAVIR SINGH, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other Association, Club or persons motor race meetings, competitions and reliability trials for motor vehicles or any other athletic sports or pass times and to offer, give or contribute towards prizes, medals and awards therefore and to promote, give or support dinners, balls, concerts and other entertainments arranged in connection thereto. 6. To establish, promote or assist in establishing or promoting, to affiliate with and to subscribe to or become a member of any other Associations or clubs whose objects are similar or in part similar to the objects of the club, or the establishment or promotion of which may be beneficial to the club. Provided that no subscriptions be paid to any such other Associations or club out of the funds of the club except bona fide in furtherance of the objects of the club. The assessee filed its return of income for the assessment year 2018-19 on 29.09.2018 which was subsequently revised on 06.10.2018. The assessee admitted gross receipt of Rs. 9,13,87,929/- and application of income was declared at Rs. 7,26,47,493/- and net income was declared at nil by claiming exemption u/s. 11 of the Act. Accordingly, the AO framed assessment u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO to make in depth enquiry with reference to the application of the provisions of section 2(15) of the Act, vis- -vis nature of activities in light of the decision of Hon ble Supreme Court in the case of Ahmedabad Urban Development Authority, supra. The CIT(Exemption) finally held in para 11 as under:- 11) The Assessing Officer is directed to make in-depth enquiries with reference to application of the provisions of Sec.2(15) of the Act, vis- -vis nature of activities and receipts of the assessee in the light of the recent decision of the Hon ble Supreme Court in the case of Assistant Commissioner of Income-tax(Exemptions) vs Ahmedabad Urban Development Authority [2022] 143 taxmann.com 278 (SC)/[2022] after affording sufficient opportunity to the assessee during the assessment proceedings. Aggrieved against the revision order passed by CIT(Exemption) u/s. 263 of the Act, the assessee filed this appeal before us. 5. We have heard rival contentions and gone through facts and circumstances of the case. Before us, the ld.counsel for the assessee argued that the AO while framing assessment u/s. 143(3) of the Act has gone into the receipts and application of funds of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption u/s. 11 of the Act, in view of the amended provisions of Sec. 2(15) of the Act and hence the Order dated 04.02.2021 is found to be erroneous in so far as it is prejudicial to the interest of the Revenue. Subsequently, he took us through the para 8.1 which reads as under:- 8.1) To sum up, the assessee s various activities as discussed above, are commercial in nature and the same are conducted for a fees or consideration. For the A.Y.2018-19, the assessee trust has mainly generated income from collection of membership fee, entry fee, sponsorship, holding of events in different categories, etc. Thus, there is violation of Sec.2(15) of the Act. Hence, exemption u/s. 11 of the Act claimed by the assessee for the A.Y.2018-19 ought to have been denied. Further, in this case, one more condition for denial of exemption u/s. 11 of the Act, as per section 2(15) is also satisfied viz., the aggregate receipts from the activities of the assessee exceeds twenty per cent of the total receipts. In view of the above, the ld.CIT-DR stated that CIT(Exemption) has not simply revised the assessment on the basis of decision of Hon ble Supreme Court in the case of Ahmedabad Urban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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