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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 ..... of by this common order for the sake of convenience and brevity. The common grievance in both the appeals read as under:- i. Ld. CIT(A) has erred in allowing the appeal of the assessee by ignoring the fact that even though the objects of the society may have been charitable but the activities carried out by the society which yielded income to the society were commercial in nature. ii. On the facts and in circumstances of the case and in law, Ld CIT(A) has erred in allowing the benefit of exemption u/s 11 & 12 of the Income Tax Act, to the assessee." 3. At the very outset, the counsel for the assessee pointed out that the issues are now well settled in favour of the assessee and against the Revenue by the decision of this Tribunal in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... research, policy and advocacy initiatives and also developing and improving methods of prevention of HIV AIDS. During the course of assessment proceedings the learned AO held that the assessee is carrying on the business activity as the assessee's proposal for getting grant comprising management free from the donors. On appeal before the learned CIT - A he allowed the assessee the benefit of section 11 and 12 of the income tax act holding that assessee is existing for charitable purposes as prescribed u/s 2 (15) of the act and proviso to that section does not apply to the assessee. Meanwhile on the proposal sent by the learned assessing officer to the learned CIT exemption, he withdrew the recognition granted to the assessee for registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lief falling u/s 2 (15 ) of the act. Further merely because the assessee receives the grant and also implement the project on behalf of the various organization for eradication of HIV/AIDS, its activities does not become a business activity or non charitable. Further for the purpose of implementation of each of the project, it charges the management fees to defray all other expenditure and administrative cost of the assessee. Merely charging the management fees does not make the activity of the medical relief of the assessee as business activity. The learned CIT - A has also given the similar finding in para number 4.4 of his order for assessment year 2010 - 11 wherein he has followed his order for assessment year 2009 - 10 dated 2/1/2014. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the learned departmental representative also. In view of this we cancel the order passed by the learned CIT-exemption dated 3/10/2017 cancelling the registration already granted to the assessee by passing an order u/s 12 AA (3) of the income tax act 1961 on 3/10/2017 and direct the ld. CIT (E) to restore the registration of the trust u/s 12AA of the act , we also direct learned assessing officer to grant benefit of section 11 and 12 of the income tax act to the assessee. In the result appeal of the assessee in ITA number 7210/del/2017 is allowed. 15. In view of this the appeal of the revenue is dismissed and appeal of the assessee is allowed." 5. When the matter travelled up to High Court, the Hon'ble High Court of Delhi vide order da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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