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TMI Blog2017 (11) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) to the assessee - Decided against revenue. - ITA No. 4980/DEL/2015, ITA No. 4981/DEL/2015 And ITA No. 4982/DEL/2015 - - - Dated:- 8-11-2017 - SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER For The Appellant : Shri K. V. S. R. Krishna, Adv For The Respondent : Sh. B. Ramanjaneyulu, Sr. DR ORDER PER SUCHITRA KAMBLE, JM These appeals are filed by the assessee against the order dated 26/05/2015 passed by CIT (A)- 40 (E), New Delhi. 2. The grounds of appeal are as under:- On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing the exemption u/s 11 disregarding the facts of the case. 1. On the facts and in the circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng college. The assessee provides the medical services like medical treatment, pathological tests and surgery etc. at very reasonable or subsidised cost and the income of the assessee is mostly from the collection of the fees from the patients as the assessee generally does not receive any donation for its charitable activities. The assessee was getting benefit of the exemption u/s 11(1) of the Act from the very beginning and up to A.Y 2007-08. There were scrutiny assessments earlier and the last one was in the A.Y 2007-08 vide order dated 07/12/2009. The case for A.Y 2008-09 was also taken up for scrutiny but the case was finally referred for special audit u/s 142(2A) of the Act. The assessment was completed by the Assessing Officer and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11(1) of the Act, as the assessee is a charitable institution and is not involved in any trade, commerce or business and there is no justification to invoke the mischief of the Proviso of section 2(15) as mere receipt of income or fees cannot be said that the assessee is involved in any trade, commerce or business as there is no profit motive and no income or profit was used or diverted for any personal benefit and the assessee. The CIT(A) allowed the appeal of the assessee. 6. The Department is before us. 7. The Ld. DR relied upon the order of the Assessing Officer and submitted that proper documents were not produced before the Assessing Officer. Therefore, the Assessing Officer rejected the exemption u/s 11(1) of the Act as the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 is involved in any trade, commerce or business and has accordingly allowed the relief to the ITPO case vide Para 58 and 59 of the order. 5.9 After considering all the facts and circumstances of the case, I am of the view that the matter of the charitable activities has been examined by the Hon ble Tribunal and the H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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