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TMI Blog2024 (1) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... duced by the appellant including financial statement in terms of judgment of Hon ble Supreme Court in the case of PCIT vs. Ahmedabad Urban Development Authority ( 2022 (10) TMI 948 - SUPREME COURT ). Appeal filed by the assessee is partly allowed for statistical purposes. - Shri N. K. Billaiya, Accountant Member And Shri Yogesh Kumar U.S., Judicial Member For the Assessee : Ms. Rano Jain, Adv. And Ms. Mansi Jain, CA For the Department : Sh. Prakash Nath Baranwal, CIT-DR ORDER PER YOGESH KUMAR U.S., JM: This appeal filed by the Assessee against the order of Learned Commissioner of Income Tax (Exemptions), [ CIT(E) , for short], New Delhi, dated 31/08/2018. The following grounds of appeal taken by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety d) The purchase/ sales bills of medicine not provided 5. The Appellant craves to leave, add, amend, modify, delete and/or change all or any of the grounds on/or before the date of hearing. 2. The assessee is aggrieved by the order of the Ld. CIT(E) in denying the registration u/s 12AA of the Income Tax Act, 1961 ( Act , for short). The Ld. Counsel for the assessee submitted that the reason for rejecting the registration u/s 12AA of the Act is that the assessee is carrying out the activity which is commercial in nature, there is a religious objects in the MOA, activity undertaken by the assessee is different from the objects and almost all transactions are in cash, the charitable and religious nature of the objectives an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re reflected in the Income and Expenditure Account. The sales/purchases account of medicines is not provided and only Rs. 2,50,880/- has been shown as net receipts. It was not denied by the appellant has shown some expenses towards group marriage and gift etc. apart from miscellaneous administration expenses, however, gross sales/purchase of medicine is not provided which is commercial activity having net profit of Rs. 2,50,880/-. Therefore, the genuineness of the activity undertaken by the society i.e., selling of medicines or charity activities have not been proved, therefore, the Ld. CIT(E) rejected the registration. 5. The Ld. Counsel for the assessee has produced numerous documents under Rule-29 of Income Tax Appellate Tribunal Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee in question, that they would fail within the mischief of cess, or fee, or any other consideration towards Trace, commerce or business In this regard, the Court has clarified through lustrations what kind of services or goods provided on cost or nominal basis would normally be excluded from the mischief of trade, commerce, or business, in the body of the judgment. A.4 Section 11(4A) must be interpreted harmoniously with Section 2(15), with which there is no conflict. Carrying out activity in the nature of trade, commerce or business, or service in relation to such activities, should be conducted in the course of achieving the GPU object, and the income, profit or surplus of gains must, therefore be incidental. The requirem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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