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TMI Blog2016 (1) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... r business. There is no profit motive in the case of the assesseen, hence, the Proviso in question is not attracted in the case of the assessee. Hence, direct the Assessing Officer to grant exemption u/s. 11 of the I.T. Act. - Decided in favour of assessee. - ITA No. 816/Del/2015 - - - Dated:- 16-10-2015 - SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER For The Appellant by : Sh.J.P. Jain, CA For The Respondent by : Mrs. Rakhi Vimal, JCIT ORDER This is an appeal filed by the Assessee against the order dt. 25.11.2014 of Ld.CIT(A), Ghaziabad for Assessment Year 2010-11. 2. The facts in brief are that the Society is registered with the Registrar of Socities, Meerut vide Registration No. 2206 dated 5.1.1013 and it was granted Registration u/s. 12A of the Income Tax Act, 1961 vide letter No. 36/GZB/97- 98 dated 20.4.1998 dated 20.4.1998 by the Commissioner of Income Tax, Ghaziabad. The exemption certificate u/.s. 80G was also granted u/s. 80G on 14.9.2011. The Assessee filed its return of income on 17.8.2010 for the assessment year 2010-11 claiming exemption u/s. 11 of the Income Tax Act, 1961. The AO in his order passed u/s. 143(3) on 6.2.2013 held that the activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative submission of the society that its activities are covered under the principle of mutuality and its income is not taxable. 5. That Ld. AO erred in law in holding that activities of the Samiti are not for charitable purpose even when the registration u/s 12A is still valid. 6. That the CIT (Appeal) has not considered the submissions made by the society. 7. That the Ld. CIT (Appeal) has erred in law and on facts while. dismissing the appeal. 7. I have heard Sh. J.P. Jain, Ld. Counsel for the Assessee and Mrs. Rakhi Vimal, Ld. DR on behalf of the Revenue. On a careful consideration of the facts and circumstances of the case and on perusal of the documents on record and the orders of the authorities below as well as case laws cited, I hold as follows. 8. The assessee-society affiliates schools, through which it pursues its objects. 65 schools are affiliated with the Society. A list of such schools with details are filed by the Assessee before us. 9. The objects of the Assessee-society are as follows:- a) To develop the form and system of education by coordinating the achievements in the field of education with the Indian culture, in such a way tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and teachers. Magazine also contain statistics pertaining to affiliated institutions and activities of the societvand affiliated schools. (Page no. 20 of Paper Book) 6) Setting and Preparation of examination papers:- The society provides examination papers to the affiliated institutions twice in a year for which a workshop of selected principals and teachers is conducted. During the year the workshop was held on 21st September, 2009. Sample copy of examination paper is enclosed. (Page no. 21 to 22 of Paper Book) 7) Sports Activity:- Society organizes a sports meet every year at state level. During the year it was held from is October, 2009 to 17th October, 2009 at Saraswati Vidya Mandir Inter college Shamli, Muzaffarnagar (UP), in which 536 students participated (Page No. 23 to 24 of Paper Book), a) Sample list of winners as declared by umpires is enclosed (Page No-25 of Paper Book) b) The winners ofthe state sports meet participate in regional sports meet organized by Vidhya Bharti Akhil Bhartiya Shiksha Sansthan, Lucknow. 89 students participated in regional sports meet organised at Krishna Bal Vidya Mandir Inter College Mangupura Distt. Muradabad (Page No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society running educational institutions in rural areas), During the year the society has collected and paid ₹ 33,824/-. Certificate enclosed (Page no. 47 of Paper Book) 14) Inspection of Schools:- Every year society coordinates and monitors the inspection of schools with respect to the standard of education, financial management, general administration and infrastructure. On the basis of inspection report the suggestions for improvement are given by the inspection team to the principal of the institution and the management of the institution. A sample inspection report is enclosed. (Page no. 48 to 74 of Paper Book) 15) Other activities:- In addition to the above activities of the society, the office bearers of the society and senior officials from Vidhya Bharti Akhil Bhartiya Shiksha Sansthan, visits the school frequently for the purpose of better coordination and overseeing the activities of the affiliated schools in order to achieve the objectives of the society. The office bearers frequently interact with dignitaries in various fields and arrange their interaction with the students and teachers affiliated to the society from time to time. 11. The issue that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Even otherwise, we find that Ld. CIT(A), Ghaziabad has recorded that the AO has concluded that the aims and objects of the Society-Trust falls under the category advancement of any other objects of general public utility . The exemption was denied only on the ground that the proviso to section 2(15) of the Act was attracted. The law on this aspect has been laid down by the decision of the Hon ble Delhi High Court in the case of M/s GSI India vs. DIT, Delhi reported in 360 ITR 138 wherein it has been held that : Section 2(15) of the Income-tax Act, 1961, was amended by the Finance Act, 2008, with effect from April 1, 2009, and a proviso was added to it. A second proviso was inserted to section 2(15) by the Finance Act, 2010, with retrospective effect from April 1, 2009. There are four main factors that need to be taken into consideration before classifying the activity of the assesseee as charitable under the residuary category, i.e., advancement of any other object of general public utility under section 2(15) of the Act. The four factors are (i) the activity should be for advancement of general public utility; (ii) the activity should not involve any activity in the natur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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