TMI Blog2024 (4) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... with all the consequential benefits. Ground of the appeal are allowed. - Shri Kul Bharat, Judicial Member And Shri M. Balaganesh, Accountant Member For the Assessee : Shri K.V.S.R. Krishan, CA; And Shri Aman Goel, CA For the Department : Shri Vivek Vardhan, SR. DR ORDER PER KUL BHARAT, JM: The captioned appeals, by the Revenue, are directed against separate orders of the National Faceless Appeal Centre (NFAC), Delhi, pertaining to the assessment years 2015-16, 2016-17 2017-18. Since identical grounds have been raised for adjudication, all these appeals were heard together and are being disposed of by a consolidated order for the sake of convenience and brevity. 2. Common grounds raised by the Revenue for the assessment years in question are as under: i. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the activities of the assessee are charitable in nature and that the assessee is eligible for exemption u/s 11 of the Income-tax Act, 1961 (the Act) by not appreciating that the activities of the assessee involve rendering of services in relation to carrying on of a trade, commerce or business and hence, hit by the proviso to section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the poor in the rural areas, in the backward districts of the State like Bihar, Jharkhand, Orissa, Madhya Pradesh, Chhattisgarh and West Bengal etc. The assessee gets grants from Central and State Government and also donation from the various organizations like, GATES Foundation etc. The assessee has been allowed benefit of exemption u/s 11 of the Act continuously up to A.Y. 2010-11. However, in A.Y. 2011-12 onwards, the assessee has been denied said exemption by the AO by invoking proviso to section 2(15) of the Act. In appeal, the First Appellate Authority allowed the exemption under section 11 of the Act with all consequential benefits. For A.Y. 2011-12 to 2014-15, the Tribunal has upheld the decision of the CIT(A), holding that the assessee is not engaged in any trade, commerce or business and thus proviso of section 2(15) is not attracted to the case of the assessee. The instant appeals, preferred by the Revenue, against orders of First Appellate Authority, pertain to A.Y. 2015-16, 2016-17 2017-18. 4. At the outset, learned counsel for the assessee submitted that the issue involved is squarely covered in favour of the assessee and against the Revenue by earlier orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ITAT, Delhi. The Co-ordinate Benches of ITAT, Delhi have already decided the issues in dispute in favour of the assessee vide aforesaid orders dated 3.09.2019, 8.12.2020 and 23.02.2021 listed in foregoing paragraph no. (B.1) of this order. For ease of reference, the relevant portion of the aforesaid order dated 3.09.2019 passed by Co-ordinate Bench of ITAT, Delhi in assessee's own case, for Assessment Year 2011-12 in ITA No 3662/ Del/2015 are reproduced as under: 2. Briefly stated facts of the case as culled out from the order of the lower authorities are that the assessee is registered under the Societies Registration Act, 1860 and also registered under section 12AA(1) of the Income-tax Act, 1961 (in short 'the Act) as a charitable society vide order dated 27/10/1984 of the competent authority. The assessee is engaged in activities for upliftment of the poor, providing training and skill development of the poor in the rural area in the backward districts of the states like, Bihar, Jharkhand, Orissa, Madhya Pradesh, Chhattisgarh and West Bengal etc. The assessee gets grant from Central and State Government and also donation from the various organization like, 'Gate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and relied on the order of the Ld. CIT(A). The Ld. counsel referred to various pages of the paper-book to substantiate that the assessee was engaged in projects related to providing relief to the poor. He specifically referred to page 53 of the paper-book wherein the grant was sanctioned by 'Sir Dorabji Tata Trust' to enable the assessee for strengthening rural livelihoods in the economically poor regions of India. He also drawn our attention to page 26, 29, 30 34 of the paper-book highlighting the project done in backward areas particularly 'Scheduled Castes' and 'Scheduled Tribes' communities of various states for taking up issues affecting their lives, including accessing basic services, rights and entitlements and their participation in local governance structure. The Ld. counsel referred to CBDT Circular No. 11/2008, dated 19/12/2008 and highlighted that the relief to the poor include welfare of the economically and socially disadvantaged or needy. According to him, the activities of the assessee being in furtherance to the cause of disadvantaged women or children or a small and marginal farmers etc. same falls under the charitable activity of 'reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee being engaged in business of providing services against fee, the activity is out of domain of charitable purpose in view of the proviso to section 2(15) of the Act. The contention of the assessee before us is that the activity of the assessee falls under the main limb of definition of the charitable purpose of relief to poor. The alternative contention of the assessee is that even if the activities of the assessee are considered under the limb of advancement of general public utility, same is not in the nature of trade, commerce or business as no profit motive is involved in providing the services and no extra fee is charged from the clients except cost of the projects. 7.1 As far as the activity of the assessee under the limb of advancement of general public utility is concerned, we find that learned Assessing Officer has not brought on record any evidences which could suggest that the activities of the assessee have been carried out with profit motive. The Ld. DR also even could not controvert the fact that the assessee has not charged any fee from the clients except the cost of project actually incurred. In the sanction letter of grant to the assessee, there is mention of sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we uphold the finding of the Ld. CIT(A) on the issue in dispute. (C.2) The aforesaid order dated 23.09.2021 of Co-ordinate Bench of ITAT, Delhi was followed by Co-ordinate Bench of ITAT, Delhi for Assessment Years 2012-13 and 2013-14 in aforesaid orders dated 8.12.2020 and 23.02.2021 respectively. In identical facts and circumstances the issues in dispute were already been decided in favour of the assessee by aforesaid orders dated 03.09.2019, 8.12.2020 and 23.02.2021 of Co-ordinate Benches of prod AT Delhi, for Assessment Years 2011-12, 2012-13 and 2013-14 respectively. In view of the foregoing, and respectfully following the aforesaid orders dated 03.09.2019, 8.12.2020 and 23.02.2021 of Coordinate Benches of ITAT, Delhi in assessee's own case, in identical facts and circumstances, for Assessment Years 2011-12, 2012-13 and 2013-14 respectively, we decide the issues in dispute in the present appeal before us, too, in favour of the assessee. Accordingly, we decline to interfere with the impugned appellate order dated 13.02.2018 of the Ld. CIT(A) and dismiss this appeal filed by Revenue. 6.1 Undisputedly, for the assessment years under consideration there is no change in facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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