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TMI Blog2021 (11) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... iety is charitable in nature as the profit, if any, made by the assessee/society is being ploughed back for charitable activities. Further, the appellant itself has granted the assessee registration under Section 12A, recognition under Section 10(23C)(vi) and Exemption under Section 80G of the Act. This Court is in agreement with the findings of the CIT(A) and ITAT that the assessee/society does not carry on any business, trade or commerce with the intent of earning and distributing profit. Appeal dismissed. - ITA 161/2021 & C.M.No.40492/2021 - - - Dated:- 16-11-2021 - HON'BLE MR. JUSTICE MANMOHAN AND HON'BLE MR. JUSTICE NAVIN CHAWLA Appellant Through : Mr. Abhishek Maratha, Advocate. Respondent Through : Mr. Ruches ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 53 Taxmann.com, 404 (Delhi) 2015 order dated 22.1.2015 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 to 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 aforesaid case. After considering all the facts and circumstances of the case, we are of the considered view that the assessee is a charitable and non-profit institution and also found that assessee is not involved i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out by the assessee yielded income/profit to the society and are commercial in nature? (4) Whether Hon ble Income Tax Appellate Tribunal was justified in the eyes of law in holding the income earned by commercial activity is charitable because of the application of the said income for the charitable-object of the society? (5) Whether the Ld. Income Tax Appellate Tribunal was justified in the eye of law in passing the impugned order without testing the case in terms of the Judgement of the Constitutional Bench of Hon ble Supreme Court in the case of Additional Commissioner of Income Tax Gujarat Vs. Surat Art Silk Cloth Manufacturers Association (1980) 121 ITR 1 (SC)? 4. Learned Counsel for the appellant states that the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not attracted. 7. In any event, the assessee/society is charitable in nature as the profit, if any, made by the assessee/society is being ploughed back for charitable activities. Further, the appellant itself has granted the assessee registration under Section 12A, recognition under Section 10(23C)(vi) and Exemption under Section 80G of the Act. 8. Consequently, this Court is in agreement with the findings of the CIT(A) and ITAT that the assessee/society does not carry on any business, trade or commerce with the intent of earning and distributing profit. 9. The Supreme Court in the case of Ram Kumar Aggarwal Anr. vs. Thawar Das (through LRs), (1999) 7 SCC 303 has reiterated that under Section 100 of the Code of Civil Proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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