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TMI Blog2015 (11) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... he same set of facts and circumstances of the case, renewal of approval under section 80G(5)(vi) has been granted for earlier years and there being no change in the facts and circumstances in the years for which renewal is sought for, there is no justification to reject the assessee's application for renewal of exemption certificate under section 80G(5)(vi) for the assessment year 2010-11 onwards. it was not proper to characterise the activities of the assessee as activities amounting to a business in the generally understood sense of the word, the most important feature of business being profit motive. It was held that it had not been suggested by the Income-tax authorities that the activities carried out by the assessee were propelled by any profit motive, therefore, the provisions of section 11(4)(a) were not attracted. Under these facts and circumstances, we hold that the learned Director of Income-tax (Exemptions) was not justified in denying the renewal of approval under section 80G(5)(vi) of the Act to the assessee. Thus, while setting aside the order impugned, we direct the learned Director of Income-tax (Exemptions) to grant renewal of approval under section80G(5)(vi) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the assessee is duly registered under section 12A(a) in 1986 and has been thus regularly assessed as charitable organisation since long. He pointed out that the assessee was already having exemption under section 80G since long and the last order of the exemption was valid up to March 31, 2008. The learned authorised representative referred to page 32 of the paper book, where the objects and activities of the assessee have been mentioned. He submitted that the assessee is an autonomous organisation under the Department of Information and Technology, Ministry of Communications and Information Technology, Government of India. It has emerged as a premier organisation of the country to promote India's Information Technology and Electronics Export. He submitted that the assessee was registered as a society under the Societies Registration Act, 1860 with effect from October 10, 1986 and is an autonomous body sponsored by the Ministry of Commerce. It is a non-profit organisation as per the export-import (Exim) policy of Government of India supported by the financial assistance from the Central Government. The assessee's council was set up by the Government for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the following decisions : (i) PHD Chamber of Commerce and Industry v. DIT (Exemptions) [2013] 357 ITR 296 (Delhi) ; (ii) Bureau of Indian Standards v. Director General of Income-tax (Exemptions) [2013] 358 ITR 78 (Delhi) ; (iii) GS1 India v. Director General of Income-tax (Exemption) [2014] 360 ITR 138 (Delhi) ; and (iv) DIT (Exemption) v. Commerce Teachers Association [2011] 203 Taxman 171 (Delhi). 6. The learned Commissioner of Income-tax (Departmental representative) on the other hand, tried to justify the order impugned with the submission that assessment order for the assessment year is not binding on the learned Director of Income-tax (Exemptions) for renewal of benefit provided under section 80G of the Act. She submitted that proceedings under sections 12A and 80G are separate and requirements therein are to be examined separately. She submitted that the decisions cited by the learned authorised representative are of the year prior to the assessment year 2009-10. She cited the following decisions in support : (i) DSE-Economics Placement Cell v. DIT (Exemptions) [2013] 23 ITR (Trib) 121 (Delhi) ; (ii) Kirti Chand Tarawati Charitable Trust v. DIT (Exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the year under consideration in comparison to the facts of the other years when the assessee was granted benefit of section 80G of the Act. The decision of the Calcutta Bench of the Tribunal in the case of Bengal Hosiery Manufacturers' Association v. DIT (Exemption) [2012] 18 ITR (Trib) 205 (Kol) dated February 28, 2011 for the assessment year 2010-11 when the proviso to section 2(15) was in operation. In that case also the learned Director of Income-tax (Exemptions) had rejected the application made by the assessee for renewal of approval under section 80G(5)(vi) of the Act on the basis that the activities of the assessee are beneficiary to the manufacturers only and the same will not be covered under section 2(15) of the Act under public utility. The Tribunal after discussing the objects of the assessee- association and the fact that the assessee has been enjoying registration under section 12A and benefit under section 80G(5)(vi) of the Act has held that the registration of an institution under section 12A by itself is a sufficient proof of the fact that the trust or the institution is created or established for charitable/general public utility purpose eligible for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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