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TMI Blog2019 (3) TMI 1738X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is engaged in the activity in the nature of trade, commerce or business or rendering any service in relation to any trade, commerce and business for cess or fee. We find that activity of the assessee are primarily motivated with the objective of promoting handloom sector in India and said activity are not for gain or profit of an individual. The executive committee of the Society also consist of all government officials with no motive of profit sharing or personal interest. The member subscription is received by the assessee in proportion of the supply by the agency and the rate decided. The said subscription fee received cannot be equated with the cess or fee against services rendered. Assessing Officer has not appreciated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... handloom sector by procuring the orders from all government departments and further giving it to the member societies. The assessee society is registered under section 12A of the Income-tax Act, 1961 (in short the Act ) since 28/06/1984. For the year under consideration, the assessee filed return of income on 15/10/2010, declaring total income at nil. The case was selected for scrutiny and notice under section 143(2) of the Act was issued and complied with. In the assessment completed under section 143(3) of the Act on 13/03/2013, the Assessing Officer held that the assessee society is hit by the provision of section 2(15) of the Act as activity of the assessee was not of charitable nature and it was in the nature of trade, commerce and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant material on record. The assessee has filed note on the activity of the society before the Ld. CIT(A), which is reproduced as under for ready reference: ...................... Association of Corporation and Apex Society of Handlooms (ACAsh) is a society constituted by the Development Commissioner (Handloom), Ministry of Textiles, Government of India. The main objects are to coordinate and defuse useful knowledge to the member units towards marketing of handloom products. The society is registered under the Society Registration Act 1860 and is also registered u/s. 12A of the Act and qualifies for exemption u/s. 11 12 of the Act. It is a non-profit organization managed and controlled by the Govt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after considering the activity in detail allowed the benefit observing as under: 8. I have considered the assessment order and the submissions of the assessee. The only ground of appeal is whether the assessee is engaged in the activities of trade, commerce or business so as to be hit by the proviso to Section 2(15) of the Act. The first contention of the assessee is that in all earlier years the objects of the assessee remaining same and held to be charitable, the benefit of Section 11 should be allowed based on principle of consistency. In this case, this contention is not acceptable as the amendment to the sec 2(15) of the I.T Act was applicable only from A.Y. 2009-10 and therefore what happens previously cannot be seen with the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as established for charitable purposes. Further in the case of ICAI (2013) 358 ITR 91, it was observed by the High Court that even though fees are charged for such activities (coaching in that case) activities cannot be stated to be rendering of services in relation to any trade, commerce or business, as such activities are undertaken in furtherance of its main objects which is not trade, commerce or business. Thus, the purpose and the dominant objective for which an institution carries on its activities is material to decide if the same is business or not for which existence of profit motive is a vital indicator. In the present case the motive is to provide a platform for handloom weavers of the country for marketing and displaying their p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in proportion of the supply by the agency and the rate decided. The said subscription fee received cannot be equated with the cess or fee against services rendered. We are of the view that the Assessing Officer has not appreciated the activities and objective of the society properly and therefore he is not justified in holding that provision to section 2(15) will be attracted in the case of the assessee. In our opinion, the finding of the Ld. CIT(A) on the issue in dispute is well reasoned, and we do not find any error in the same. Accordingly we uphold the same. The ground of the appeal of the Revenue is accordingly dismissed. 6. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 27th March ..... X X X X Extracts X X X X X X X X Extracts X X X X
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