9911796707
TMI Blog2017 (1) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... ort 'the Act') declaring a total income of Rs. NIL The Assessing Officer rejected the claim of exemption u/s 11 on the basis of proviso to section 2(15). Thereafter, the Assessing Officer assessed the total income at Rs. 2,56,61,942/- by adding excess of income over expenditure and disallowing the depreciation. 3. On appeal, the CIT(A) confirmed the action of the AO. 4. Aggrieved by the order of the CIT(A), the assessee is in appeal before us raising the following grounds of appeal: 1. The order of the learned Commissioner of Income Tax, Hyderabad, is against the law, weight of evidence and probabilities of case. 2. Your assessee submits that the CIT(A) ought to have appreciated the fact that your Assessee is carrying on education an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. DR neither controverted the submissions of the assessee nor brought any contrary decision on this issue. 7. Considered the rival submissions and perused the material facts on record. As submitted by the ld. AR of the assessee, similar issue came up for consideration before the ITAT in assessee's own case for AY 2010-11, wherein the Bench has held as under: "9. Considered the submissions of both the counsels and material facts on record as well as the orders of revenue authorities. There is no dispute on the fact that the trust is functioning since 1982 and 12A registration is granted as well as enjoying exemption u/s 11. There is no change in trust nor method of accounting since inception. After amendment to section 2(15) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the receipts from the activities is ten lakh rupees or more in the relevant PY. The proviso will not apply in respect of the first three limbs of section 2(15) i.e. relief to the poor, education or medical relief. Thus, where the purpose of a trust or institution is relief to the poor, education or medical relief, it will constitute 'charitable purpose' even if it incidentally involves the carrying on of the commercial activities. In the present case, the AO and CIT(A) have held that there exists income over expenditure and the assessee is charging certain fees for activities carried on by it, which amounts to carrying on of commercial activities, hence, denied the exemption u/s 11. We are of the view that mere charging of fees for ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imparting training to the bottom like employees, which may be similar to education. Hence, in our view, the assessee is involved in carrying on of charitable activities and not in any commercial activities as held by the AO. Thus, AO cannot deny the benefit u/s 11 of the Act. Accordingly, the grounds raised by the assessee in this regard are allowed." As the facts and grounds are materially identical in the year under consideration to that of AY 2010-11, respectfully following the conclusions drawn therein, we direct the AO to allow the assessee's claim of exemption u/s 11 of the Act. Accordingly, ground Nos. 1 to 5 are allowed. 8. As regards ground No.6 regarding disallowance of depreciation, since we have allowed the assessee's claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
