9911796707
TMI Blog2018 (6) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... adation as well as in providing them market access for their corresponding products - thus we observe the assessee to be covered under the specified category of “relief of the poor” as per Board’s beneficial circular issued u/s 119 of the Act. We therefore are of the view that Revenue’s sole grievance deserves to be rejected - Decided against the revenue. - ITA No. 439-441/Kol/2017 - - - Dated:- 15-6-2018 - Shri J. Sudhakar Reddy, Accountant Member And Shri S. S. Godara, Judicial Member By Assessee : Shri S.M. Surana, Advocate By Respondent : Shri S.M. Das, Addl. CIT-DR ORDER Per S. S. Godara, Judicial Member These three Revenue s appeals for assessment year(s) 2009-10, 2010-11 and 2012-13, challenge correctness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es read as under:- 3. The objects for which the Society is established are:- (i) To assist Producers/Artisans working in or with welfare organizations, co-operative and Registered Societies, and others, engaged in cottage and small scale industries to marketing their products using any suitable marketing channel in the country or abroad. (ii) To assist welfare organizations, co-operative societies, Registered Societies, people engaged in cottage and small scale industries in the form of advances, locating suitable raw material sources, design and technical inputs whenever required in order to meet market commitments or requirements; (iii) To arrange exhibition and meals, organize showrooms/sales counter within the Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roper; (ix) To hire, purchase, build, acquire or take on rental or lease any movable and immovable property or exchange any rights and privileges for the purposes of the society; (x) To borrow money with or without security and/or with or without interest that may be required for the purposes of the society; (xi) To invest fund of the society in such manner as the Managing Committee may think fit for the safety and benefit of the society and to convert or change such investments as per decision of the Managing Committee and according to the Acts Rules of the Government; (xii) To enter into any liability for the purpose of the society and to repay or discharge any debt or liability by mortgage, charge, pledge, hypot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord before us. There is no dispute between the parties at all that assessee s main activities are to work with the poor, marginal artisans and woman craft producers as well as rendering necessary assistance to them in enterprise development, skills technical upgradation and providing market excess. The Assessing Officer has admittedly treated the assessee to be eligible for exemption right up to AY 2007-08. His regular assessment order dated 30.11.2009 to that effect forms part of the paper book at page 27. 5. We now come to the dispute between the parties. The Assessing Officer framed re-assessment / assessments (supra) in the impugned three assessment years applying section 2(15) (1st proviso) of the Act inter alia on the grounds that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haritable purpose who rather advances objects of general public utility leading to exclusives u/s. 2(15) 1st proviso squarely applicable in its case as it has been carrying out the activities concerned in the nature trade, commerce or business only. We find no merit in Revenue s instant sole substantive ground. The Board s circular (supra) hereinabove makes it sufficiently clear that the former category relief of the poor includes within its ambit any purpose such as relief to indigent artisans as under:- EXEMPTIO UNDER SECTION 11 IN CASE OF ASSESSEE CLAIMING BOTH TO BE CHARITABLE INSTITUTIONS AS WELL AS MUTUAL ORGANISATINS CIRCULAR NO.11/2008, DATED 19-12-2008 Definition of Charitable purpose under section 2(15) of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edical relief. Consequently, where the purpose of a trust or institution is relief of the poor, education or medical relief, it will constitute charitable purpose even if it incidentally involves the carrying on of commercial activities. 2.2 Relief of the poor encompasses a wide range of objects for the welfare of the economically and socially disadvantaged or needy. It will, therefore, include within its ambit purposes such as relief to destitute, orphans or the handicapped, disadvantaged women or children, small and marginal farmers, indigent artisans or senior citizens in need of aid. Entities who have these objects will continue to be eligible for exemption even if they incidentally carry on a commercial activity, subject, how ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
