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TMI Blog2023 (4) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and arms license verification etc. - AO considering the activities of assessee first determined the violation of section 2(15)and had rejected the claim of deduction U/s 11 r.w.s. 13(8) - HELD THAT:- Revenue authorities first pointed out that from the financial statement of the assessee it is not clear that the assessee is doing any charitable work. The eligibility for deduction u/s 11 for community work for collection of facilitation charges is not under the purview of the Act. In appeal order, the appellate authority reproduced the income and expenditure account of the assessee. Whereas, no such charitable work is reflected in collection of facilitation charges. We respectfully considered the order in the matter of DCIT, Exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder passed u/s 143(3) of the Act. 2. At the outset, both the appeals of the assessees are identical in nature and have a common factual issue. With the consent of the ld. counsel for the assessee we have taken ITA No. 13/Asr/2020 is taken as a lead case. ITA No.13/Asr/2020 3. The assessee has taken the following grounds: 1. The First Appellate Authority has erred in holding that the proviso to section 2(15) of the Income Tax act is attracted to the assessee and exemption u/s 11 of the Income Tax act is not allowed without appreciating and acknowledging the facts of the case that the appellant is not doing any activity in nature of trade, commerce or businesses as appellant is just doing the function of Public welfare in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety is registered under section 12AA(1)(b)(i) of the Act, and had claimed exemption under section 11 of the Act in respect of its income. The assessee Society was pursuing charitable activities by running Suvidha Centre for general public by organizing and participating in awareness campaigns against drug abuse and addiction, spreading traffic awareness in general public, rendering service related to passport and visa related services, police clearance certificate, issuance of copy of NOC, issuance of documents and arms license verification etc. and has declared total income/receipts of Rs. 12,62,631/- as against which amount applied on account of revenue expenditure stands at Rs. 12,05,551/- and thus, excess of income over expenditure at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a charitable organization. Accordingly, for the year under assessment, benefits under section 11 of the income-tax Act, 1961 cannot be allowed to the assessee in accordance with provisions of section 13(8) of the Income-tax Act, 1961. In view of the above, it is seen that the assessee has receipts arising out of the activity in the nature of business or commerce and accordingly provision of section 2(15) are not applicable. 14. Since the assessee has receipts arising out of activities in the nature of business and commerce and accordingly, the activities of the society does not come under the definition of charitable purposes as defined in section 2(15), assessee is not entitled for claim of exemption under section 11 of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr. DR vehemently argued and relied on the order of the revenue authorities. The ld. Sr. DR invited our attention in order of the ld. CIT(A) page 16 para 4.5 which is extracted as below: 7. We heard the rival submission and considered the documents available in the record. The revenue authorities first pointed out that from the financial statement of the assessee it is not clear that the assessee is doing any charitable work. The eligibility for deduction u/s 11 for community work for collection of facilitation charges is not under the purview of the Act. 7.1 In appeal order, the appellate authority reproduced the income and expenditure account of the assessee. Whereas, no such charitable work is reflected in collection of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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