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TMI Blog2018 (9) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is registered under “non-profit making entity” under section 25 of the Companies Act and has been providing artificial limbs to the needy persons without earning any profit. AO shall provide an opportunity of being heard to the assessee before deciding the issue. - ITA No.7874/Del./2017 And ITA No.7875/Del./2017 - - - Dated:- 14-9-2018 - SHRI SHRI G.D. AGRAWAL, PRESIDENT AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASSESSEE : Shri Sanjay Kumar, CA And Shri Akash Garg, Advocate For The REVENUE : None ORDER PER BENCH : Since common questions of facts and law have been raised in both the aforesaid appeals, the same are being disposed off by way of consolidated order to avoid repetition of discussio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd c) setting up centres equipped with training facilities and technical know-how for fabrication of device and 'fitment', falling in the realm of' education' and accordingly the proviso to section 2(15) was not attracted in its case and view to the contrary is wholly erroneous being inconsistent with the facts of the case and law applicable thereto. 3. BECAUSE applicability of proviso to section 2(15) of the Act stood specifically excluded in the instant case by virtue of Circular no.11 of 2008 dated 19.12.2008 issued by CBDT which was binding on the authorities below situated under the overall control of the said apex body in the Direct taxes administration. 4. BECAUSE the surplus arising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natural justice. 3. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee Corporation is a Government of Undertaking engaged in the business of manufacturing of artificial limbs, components and rehabilitation aids and related services. Assessee claimed exempt income under section 11 of the Incometax Act, 1961 (for short the Act ) on the basis of registration granted u/s 12AA of the Act. However, AO denied the benefit of section 11 of the Act to the assessee on the ground that since manufacture and sale of artificial limbs etc. is the main business of the assessee, it is not incidental to the aims and objects of the assessee corporation and as such, the income derived from manufacture and sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n accordance with normal provisions of the Income tax Act, 1961 applicable in the cases of Domestic Companies. Further Ld. Commissioner of Income-tax-Il, Kanpur vide his order dated 8.12.2008 granted certificate u/s. 12AA of the Act in accordance with the directions issued by Hon'ble IT A T granted registration to the Institution w.e.f. 30.11.1972, subject to provisions contained u/s. 12AA (3) of the Income Tax Act, 1961. The issue of grant of registration u/s. 12AA is sub-judice before Hon'ble Allahabad High Court, therefore, the status of the assessee as discussed in above paras is taken as Company . The assessee s claim of exemption u/s 11 is denied in view of discussion in above paras. As the assessee had furnished inaccurate p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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