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TMI Blog2023 (3) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... as to out of clutches of Section 11(4A) of the Act, though the assessee had maintain sufficient separate account in as much as separate ledger account for the same maintained. In view of the above settled position of law and considering the fact that the Revenue has accepted the case of the assessee on earlier as well as subsequent years with identical facts, we are of the opinion that the grounds of appeal of the assessee deserves to be allowed, accordingly the additions made by the A.O which was sustained by the CIT(A) is hereby deleted by allowing the Grounds of Appeal and consequently we hold that the assessee is entitled for the benefit u/s 11/12 of the Act. Appeal filed by the assessee is allowed. - I.T.A. No. 4061/DEL/2018 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l facts are not considered a separate business activity by revenue authorities itself even in other cases, hence addition is against all the cannons of law. 4. Because, without prejudice to above but only as an alternative, the Id. lower authority erred in not appreciating that assessee had maintained sufficient separate accounts for above activities and further failed to appreciate that even Id. AO himself calculated separate surplus in said activities on the basis of said accounts hence order upholding rejection of exemption u/s 11-12 even after invoking (A4)11for said activities is illegal. 5. Because, without prejudice to above but only as an alternative, the Id. lower authority also erred in not appreciating the fact that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted the case of the assessee on earlier as well as subsequent years with identical facts i.e. Assessment Year 2010-11, 2011-12, 2012-13, 2015-16, 2016-17 2018-19 and in all the said assessment years no additions were made in respect of the amount received from the students over academic fee, being towards transportation/mess etc. facilities as separate business activity in terms of Section 11 (4A) of the Act. The Ld. Counsel for the assessee has taken us through the various judgments and submitted that the addition made by the Revenue authority for the year under consideration is deserves to be deleted. 7. Per contra, the Ld. DR submitted that, the assessee has charged fees beyond the guidelines given by the Government, therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income of its business for the purpose of achieving its charitable objects. In this way, the trust is allowed to create a corpus by indulging in business activity to feed the charity. As the provision stands, all that is required for the business income of the trust or institutions to be exempted from the tax is that the business should be incidental to the attainment of the objectives of the trust or institution. A business whose income is utilised by the trust or the institution for the purpose of achieving the objectives of the trust or the institutions, is, surely, a business which is incidental to the attainment of the objectives of the trust. It was, thus, held that the substituted sub-section (4A) is more beneficial to a trust or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the trust and that the assessee has not complied with the provisions under Section 11 (4A) of the Act by not maintaining separate books of accounts of the income of the said business even if said business is said to be incidental to the objectives of the trust, are found faulty. The revenue has committed wrong in holding that the business carried on by the assessee having no direct relationship with the objectives of the trust, the mandate of Section 11(4A) of the Act had to be complied with. There was no material on record with the revenue to hold that the hostel activity is a separate business. From any angle, it could not be proved by the revenue that the income from the hostel fee can be treated as profit and gains of the separate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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