ITO, NEW DELHI vs. CONSULTANCY DEVELOPMENT CENTRE, NEW DELHI

Assessee by : Sh. Anil Kumar Sharma, Sr. DR Revenue by: Sh. SD Kapila, Adv Sh. RR Maurya, Adv Sh. Sanjay Kumar, Adv Date of Hearing 21/12/2016 Date of pronouncement 16/02/2017 O R D E R PER PRASHANT MAHARISHI, A. M. This is an appeal filed by the revenue against the order of the ld CIT(A)-XXI, 1. New Delhi dated 24.01.2013 for Assessment Year 2009-10. The assessee has raised the following grounds of appeal:- 2. “1. On the facts and in the circumstances of the case in law, the ld CIT(A) has erred in holding that the activities of the assessee are charitable in nature and not in the nature of trade, business or commerce specially when the assessee is charging fee as event manager from the participants for attending the seminar and events and also other program and activities.

2. On the fact and in the circumstances of the case and in law, the ld CIT(A) has erred in applying the ration of judgment of Hon'ble High Court in the case of the Bureau of Indian Standards and allowing the relief to the assessee by holding the activities of the assessee are charitable in nature within the meaning of section 2(15) of the Act.” The assessee is a trust registered u/s 12A of the Act engaged in the activity 3. relating to awareness, programs in consultancy field. It filed its return of income on 30.09.2009 showing Nil income. The assessment was framed u/s 143(3) of the Act wherein it has been held that the assessee is carrying on activities by charging fees etc and therefore, they are purely commercial in nature. He further held that the assessee is neither in the field of education Page 2 of 3 nor in the field medical relief or relief of poor. Thereby, it was held that amended definition w.e.f AY 2008-09 the assessee is not eligible for exemption u/s 11, 12 and 13 and income was assessed at Rs. 17269764/-. The assessee preferred an appeal before the ld CIT(A) who allowed the claim of the assessee holding that the issue is squarely covered in favour of the assessee in view of the decision of Hon'ble Delhi High Court in case of Bureau of Indian Standards 2012-TIOL-928-HON'BLE HIGH COURT-Del-IT. He further held that there is no profit motive involved and therefore the assessee is a genuine charitable organization within the meaning of section 2 (15) of the Act. aggrieved by the order of ld CIT(A) the revenue preferred an appeal before us. The ld DR relied upon the order of the ld Assessing Officer whereas the ld AR 4. relied upon the order of the ld CIT(A) and further submitted that the issue is further covered in favour of the assessee by the decision of the Hon'ble Delhi High Court in 360 ITR 138 and 358 ITR 78. He further submitted a chart of comparable of those decisions with the facts involved in the present case.