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TMI Blog2017 (1) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... being discriminatory in view of the Article 14 (Equality before law) of the Constitution of India but the Hon'ble High Court has read down the strict and literal Interpretation of the Proviso of section 2(15) and has held that mere receipt of fee or charge cannot be said that the assessee involved in any trade, commerce or business and has accordingly allowed the relief to the ITPO. Also further find that after considering all the facts and circumstances of the case and following the order of Ld. CIT(A) for AY 2010- 11 & 2011-12, Ld. CIT(A) has rightly held that the assessee is a charitable institution and accordingly, the AO was directed to allow the exemption u/s. 11 & 12 of the I.T. Act to the assessee alongwith consequential benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) To foster and maintain a high standard of amateur gold in India. c) To arrange for the conduct of the Amateur Gold Championship in India and other gold Championship in India. d) To promote and arrange golf matches and competitions in India and elsewhere The assessee society is registered u/s. 12A of the I.T. Act, 1961 vide registration dated 31.8.1999. A perusal of income and expenditure account of the assessee revealed that the assessee apart from other receipts, have also received the following incomes : IGU sponsorship fees, rental income and Rolex Contribution (sponsorship). AO observed that since the above receipts are in nature of commercial receipts, the assessee was asked to furnish its explanation as to why not the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have considered the order of the AO, submissions of the assessee and the earlier order of my predecessor CIT(A). It is seen that in the case of Hamsadhwani Vs. DIT(E) (2012) 19 Taxmann.com 10 ITAT Chennai, the assessee was promoting music in Tamil Nadu for which it was receiving sponsorship and coaching fees and the Hon'ble Tribunal did not accept the argument of DIT(E) that the assessee was involved in any business activity and the exemption was allowed. Recently the Hon'ble Delhi High Court in the case of India Trade Promotion Organization vs. DGIT(E), 53 Taxmann.com 404 (Delhi) 2015 (order dated 22.01.2015) has upheld the constitution validity of the proviso of section 2(15) which was under challenge being discriminatory in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng discriminatory in view of the Article 14 (Equality before law) of the Constitution of India but the Hon'ble High Court has read down the strict and literal Interpretation of the Proviso of section 2(15) and has held that mere receipt of fee or charge cannot be said that the assessee involved in any trade, commerce or business and has accordingly allowed the relief to the ITPO. I further find that after considering all the facts and circumstances of the case and following the order of Ld. CIT(A) for AY 2010- 11 2011-12, Ld. CIT(A) has rightly held that the assessee is a charitable institution and accordingly, the AO was directed to allow the exemption u/s. 11 12 of the I.T. Act to the assessee alongwith consequential benefits. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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