9911796707
TMI Blog2023 (11) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... ational e- Assessment Centre, Delhi for the assessment year 2018-19 u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter the 'Act'), vide order dated 04.02.2021. 2. The only issue in this appeal of assessee is as regards to the revision order passed by CIT(Exemptions) u/s. 263 of the Act revising the assessment order passed by AO for assessment year 2018-19 u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act dated 04.02.2021 allowing the claim of exemption u/s. 11 & 12 of the Act. For this issue, assessee has raised various grounds which are argumentative in nature but issue is only one and hence, need not be reproduced. 3. Brief facts are that the assessee, a Society registered under the Tamil Nadu Society Act, was e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... give or contribute towards prizes, medals and awards therefore and to promote, give or support dinners, balls, concerts and other entertainments arranged in connection thereto. 6. To establish, promote or assist in establishing or promoting, to affiliate with and to subscribe to or become a member of any other Associations or clubs whose objects are similar or in part similar to the objects of the club, or the establishment or promotion of which may be beneficial to the club. Provided that no subscriptions be paid to any such other Associations or club out of the funds of the club except bona fide in furtherance of the objects of the club. The assessee filed its return of income for the assessment year 2018-19 on 29.09.2018 which was sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing the claim of exemption u/s. 11 of the Act. In view of the amended provisions of section 2(15) of the Act, which has not been examined by the AO and hence, the said order is prejudicial to the interest of Revenue as per CIT(Exemption). The CIT(Exemption) after considering the submissions of the assessee concluded that in view of the decision of Hon'ble Supreme Court in the case of ACIT (Exemptions) vs. Ahmedabad Urban Development Authority, [2022] 449 ITR 1 (SC), the order of AO is erroneous insofar it is prejudicial to the interest of Revenue in term of section 263 of the Act. Hence, he directed the AO to make in depth enquiry with reference to the application of the provisions of section 2(15) of the Act, vis-à-vis nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to application proviso to the provision of section 2(15) of the Act in the light of the recent decision of Hon'ble Supreme Court in the case of Ahmedabad Urban Development Authority, supra. The ld.counsel for the assessee stated that the CIT(Exemption) apart from Ahmedabad Urban Development Authority, supra, has not examined any facet of the claim of exemption or applicability of proviso to provision of section 2(15) of the Act and simply set aside the assessment. The ld.counsel for the assessee filed copy of judgment of Hon'ble Supreme Court in the case of Ahmedabad Urban Development Authority, supra, i.e., Supreme Court clarifying its interpretation of the provisions of section 2(15) of the Act and applicability of judgment. The ld.couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "8.1) To sum up, the assessee's various activities as discussed above, are 'commercial' in nature and the same are conducted for a fees or consideration. For the A.Y.2018-19, the assessee trust has mainly generated income from collection of membership fee, entry fee, sponsorship, holding of events in different categories, etc. Thus, there is violation of Sec.2(15) of the Act. Hence, exemption u/s. 11 of the Act claimed by the assessee for the A.Y.2018-19 ought to have been denied. Further, in this case, one more condition for denial of exemption u/s. 11 of the Act, as per section 2(15) is also satisfied viz., the aggregate receipts from the activities of the assessee exceeds twenty per cent of the total receipts." In view of the above, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment years which were not called upon and accordingly law declared in said judgment would be applicable, as per facts of each such assessment year. Hence simply on the judgment of Hon'ble Supreme Court in the case of Ahmedabad Urban Development Authority, supra, the revision is not possible. We also noted from the revision order apart from that the CIT(Exemption) has not at all deliberated how the assessee has violated the proviso to the provision of section 2(15) of the Act and how the AO has not examined the issue. We have gone through para 4 & 8.5 referred by CIT-DR but we could not find anything which proves that there is violation of the proviso to provision of section 2(15) of the Act. Hence, we quash the revision order and allow t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
