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| The Tax Publishers2020 TaxPub(DT) 1493 (Del-Trib) : (2020) 185 ITD 0063 INCOME TAX ACT, 1961
Section 11
Since facts of case were same as in assessment year 2010-11 for assessee's own case, thus, following order of CIT(A) for assessment year 2010-11, assessee could not be said to be involved in carrying on any business, trade or commerce and AO was directed to allow benefit of section 11 with consequential benefits.
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Charitable trust - Exemption under section 11 - Exemption allowed in earlier assessment year on same set of facts -
Assessee was registered under Societies Registration Act, 1860 and was also registered under section 12A. Its main objective was to promote handloom sector and it worked as implementing agency for Development Commissioner (Handloom), Government of India for organizing exhibitions in different parts of country for display and sale of handloom fabrics/cloth manufactured by handloom weavers and handloom society. Issue arose for consideration as to whether activities carried out by assessee which resulted in profits/ surplus were commercial in nature. Held: Since facts of case were same as in assessment year 2010-11 for assessee's own case, thus, following order of CIT(A) for assessment year 2010-11, assessee could not be said to be involved in carrying on any business, trade or commerce. AO was directed to allow benefit of section 11 with consequential benefits. Tribunal also upheld order of CIT(A) holding that AO did not appreciate activities and objective of society properly and therefore he was not justified in holding that provision of section 2(15) will be attracted in case of assessee.
REFERRED : India Trade Promotion Organization v. Director General of Income Tax & Ors. (2015) 371 ITR 333 (Del) : 2015 TaxPub(DT) 0623 (Del-HC), The Institute of Chartered Accountants of India and another v. Director General of Income Tax & Ors. (2013) 358 ITR 91 (Del) : 2013 TaxPub(DT) 2666 (Del-HC), and ITO v. M/s. Association of Corporation & Apex Societies of Handlooms [ITA No.4788/Del/2016, dt. 27-3-2019]
FAVOUR : In assessee's favour
A.Y. :
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