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TMI Blog2021 (3) TMI 1355X X X X Extracts X X X X X X X X Extracts X X X X ..... only 15% of its total donation is given to other societies for awareness and treatment of poor HIV Patients. The entire amount spent by the Assessee is through societies and trusts. It also runs its own project for the welfare of HIV and AIDS patients. In the above circumstances it has been held that merely because the Assessee charges management fees to defray the administrative costs it would not make its essential activity a business activity.- Decided against revenue. - ITA No.7449/DEL/2017, ITA No.7450/DEL/2017 - - - Dated:- 22-3-2021 - N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER, For the Department : Sh. S.N.A. Najani, Sr. DR For the Respondent : Sh. V.K. Tulsian, Adv ORDER PER N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided by the Tribunal in assessment year 2010-11 (supra). The relevant finding reads as under:- We have carefully considered the rival contention and perused the orders of the lower authorities. Undisputed fact shows that the assessee is a registered charitable institution under section 25 of the companies act 1956 holding registration u/s 12 A of the income tax act vide order dated 17/7/2000 and also enjoys the benefit under section 80 D of the income tax act wide order dated 11/9/2006. The main object of the appellant for which it has been formed are to provide relief to the persons who are suffering from HIV/AIDS by providing financial, technical and managerial assistance to foster the care and community support of those suffering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... components of human resources expenses , training and infrastructure and equipments and along with the management fee over and above the running cost . Therefore assessee is carrying on the business activity and falling into the last limb of provisions of section 2 (15) of the income tax act. According to the provisions of section 2 (15) which defines the charitable purpose‟ which includes relief to the poor, education, yoga, medical relief along with many other objectives and also the advancement of any other object of general public utility. On looking at the object of the assessee as well as the activities of the assessee, it is apparent that assessee is carrying on the activities for the purpose of eradication of HIV AIDS diseas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also the fact he has recorded that the assessee spends the whole amount through various societies and trust and the assessee is also running its own project for the welfare of the HIV and AIDS patients. Further it is also the fact that assessee is a section 25 company under the companies act 1956 which cannot carry on any business activities. In view of the above facts it is apparent that assessee assessee is existing for and is carrying on the charitable activities in the form of medical relief for HIV and AIDS patient and the awareness about the disease. In view of the above facts we confirm the order of the learned CIT - A for assessment year 2010 - 11 and dismiss the appeal of the revenue in ITA number 716/del/2015. 14. As we have al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Section 2(15) of the Income Tax, 1961 (Act) because the Assessee charged a management fee for defraying its administrative expenses. 3. In the impugned order the ITAT has noticed that the Assessee is a company registered under Section 25 of the Companies Act. It gives 85% of the donation received by it to the Government of India for HIV Aids and only 15% of its total donation is given to other societies for awareness and treatment of poor HIV Patients. The entire amount spent by the Assessee is through societies and trusts. It also runs its own project for the welfare of HIV and AIDS patients. In the above circumstances it has been held that merely because the Assessee charges management fees to defray the administrative costs it wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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