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TMI Blog2016 (2) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... was quoted in Assessment Order. The test to be applied is whether the predominant object of the activity involved in carrying out the object of general public utility is to subserve the charitable purpose or to earn profit. Where the predominant object of the activity is to carry out the charitable purpose and not to earn profit, it would not lose its character of a charitable purpose merely because some profit arises from the activity. The exclusionary clause does not require that the activity must be carried on in such a manner that it does not result in any profit. The restrictive condition that the purpose should not involve the carrying on of any activity for profit would be satisfied if profit making is not the real object. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act, 1961. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 1,88,394/- on account of disallowance of depreciation. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the fact that the A.O denied the claim of exemption to the assessee u/s 11 12 of the Act. 3. The assessee is a sports federation promoting athletics in India and the federation is recognized by Ministry of Youth Affairs Sports. The assessee receives recognition fees for recognizing various sports events in India. The case was taken up for scrutiny and the A.O denied the benefit u/s 11 of the Income Tax Act, 1961 mainly o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee comes under the category of charitable organization and even the case laws relied on by the assessee supports the case of the assessee. Accordingly the claim of the assessee for exemption u/s 11 was allowed by the CIT(A). 6. The DR relied upon the order of the Assessing Officer. 7. We have perused all the records and heard the Ld. DR. The CIT(A) was right in holding that the prime object of the federation is to promote Athletics and Sports in India. The main object of the assessee comes under the purview of Section 2(15) of the Act which defines charitable purpose. The dominant or primary purpose of the assessee is to promote athletics in India which is charitable and the other objects are in the nature of powers conferred upo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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