2011 (8) TMI 1252 - AT - Income Tax

Summary

Issues Involved:
The Revenue challenges the orders of the Ld. CIT (A)-I, Mumbai for the Assessment Years 2005-06, 2006-07, and 2007-08 regarding the exemption u/s.11 of the I.T. Act, 1961.

Exemption u/s.11 of the I.T. Act, 1961:
The assessee, an "Export Promotion Council," claimed exemption u/s.11, which was denied by the A.O. due to organizing trade fairs considered as a dominant business activity. The A.O. deemed the council's activities as non-charitable, leading to the denial of exemption u/s.11. The Ld. CIT(A) allowed the appeal based on the Tribunal's decision in the assessee's case, directing the A.O. to grant the exemption u/s.11.

Judgment Details:
The Ld. Counsel argued that the issue of exemption u/s.11 is in favor of the assessee based on the High Court's decision in the assessee's case. The High Court upheld the Tribunal's order, confirming that the assessee fulfilled the conditions u/s.11(4A) and maintained separate books of account for exhibition activity. The High Court dismissed the Revenue's appeal, citing precedent and finding no merit, leading to the confirmation of the Ld. CIT(A)'s orders in all three assessment years.

Conclusion:
Following the High Court's judgment, the Tribunal dismissed all appeals of the Revenue, upholding the Ld. CIT(A)'s orders regarding the exemption u/s.11 of the I.T. Act, 1961 for the Assessment Years 2005-06, 2006-07, and 2007-08.