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TMI Blog2022 (8) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter she ought not to have passed the said order u/s 263 of I.T. Act, 1961. 2. The Appellant craves leave to add, amend or alter the above grounds of appeal at or before the time of hearing. Additional Grounds 1. Without prejudice to the earlier grounds, it is submitted that in the facts and the circumstances of the case, and in law, even on merits, no such directions were called for. 2. The Appellant craves leave to add, alter, delete or modify all or any the above ground at the time of hearing. 2. The brief facts of the case are that the assessee is an AOP and registered union under Trade Union Act, 1926. The assessee being a Trade Union of film and television writers is engaged in the activity of regulating the relations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0(24) of I.T. Act, 1961 being a Trade Union. The assessee stated that such receipts were categorical under the head 'Income from other sources' as it was not carrying out any business for profit. To support its stand, the assessee had also quoted the order of Ld. CIT(Appeals)-III, GST & CX, Mumbai, which has held the assessee to be a Trade Union and not a Business Entity. 4. The contention of the assessee did not find favour and the Ld. PCIT held that from the gross receipts of Rs. 1,44,08,286/- received by the assessee under 20 heads mentioned below except for the last two heads i.e. Interest Income from saving account and Fixed Deposit, the other receipts are in the nature of business income and will not attract the exemption claimed u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the nature of activity of the assessee and stated that the Ld. PCIT did not provide sufficient justification for deciding the receipts received by the assessee as business income. The Ld. AR relied on the decision of Hon'ble Bombay High Court in the case of Mario Raposo Vs. H. M. Bhandarkar and Ors (Writ Petition No. 3425 of 1993). The Ld. DR on the other hand contended that the assessee is not entitled to claim exemption u/s 10(24) and relied on the decision of the Ld. PCIT. 7. We have heard the rival submissions and perused the materials placed on record. It is an admitted fact that the assessee is a registered Trade Union of Film and Television Writers registered under the Trade Union Act, 1926. The assessee holds certificate of regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e members of the Association. xi) To build-up and administer funds for the provisions of legal aid, un-employment, disablement, retirement and death benefits, provident funds and other benefits whichever may be deemed necessary from time to time. xii) To secure representation of its members on delegations, commissions, committees, etc., set up by the Central or State Governments or Film Industry or other bodies where representation of non-officials is required. xiii) To engage in such other legitimate activities as are incidental and conducive to the attainment of the aforesaid objects. 8. Now considering the contention of the Ld. PCIT that "Any receipt which is a direct consequence of its core activities will always form part of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A union undoubtedly needs money for its activities. The Act provides the mechanism for generating funds and via Section 15 and 16 controls the expenditure thereof. "Profit making can never be an objective of the Union. "Purchase of shares" is clearly an attempt towards profit making and carries with it an odour of "speculation". 10. From the above observations, it is evident that the assessee is not a business entity and does not work for profit. It is an association for the welfare of certain category of persons who writes in the film industry and other audio visual media and its objective is to protect the interest of its members though there is income generated not for profit but for the purpose of the welfare of the association and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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