Indian Medical Association, New Delhi V. ADIT (E), New Delhi

ITA 2091/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7368 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 21-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 09-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHISH CHADHA
• Keywords: Charitable institution; Capital expenditure
• Section: 80G; 12A; 11

Judgement Text

1 ITA NO. 2091/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI: JUDICIAL MEMBER ITA NO. 2091/DEL/2014 ASSTT. YR: 2010-11 INDIAN MEDICAL ASSOCIATION VS. ADIT (E), TRUST CI RCLE-II, IMA HOSUE, I.P. MARG, NEW DELHI. NEW DELHI. PAN: AAATI 0290 G ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI VED JAIN CA AND SHRI ASHISH CHADHA CA RESPONDENT BY : SHRI RAJESH KUMAR SR. DR DATE OF HEARING : 21/06/2016. DATE OF ORDER : 23/06/20126. O R D E R PER S.V. MEHROTRA, A.M: 1. THIS IS ASSESSEES APPEAL AGAINST THE ORDER DATED 24.2.2014 PASSED BY THE LD. CIT(A) IN APPEAL NO. 241/2013-14 RELATI NG TO AY 2010-11. 2. THE ASSESSEE HAD FILED RETURN OF INCOME DECLARIN G NIL INCOME. AO HAS OBSERVED THAT THE SOCIETY IN THE RELEVANT ASSESSMEN T YEAR WAS REGISTERED U/S 12A OF THE INCOME-TAX ACT, 1961 ON 27.6.1974 AND U/ S 80G VIDE REGISTRATION 2 ITA NO. 2091/DEL/2014 NO. 1436 DATED 31.8.2009, WHICH WAS VALID FROM 2010 -11 TO 2012-13. THE AO NOTICED AS UNDER: 2. THE MAIN OBJECTS OF THE SOCIETY ARE TO PROMOTE AND ADVANCE MEDICAL SCIENCE AND TO PROMOTE IMPROVEMENT OF PUBLI C HEALTH AND MEDICAL EDUCATION IN INDIA. THE ACTIVITIES OF I MA INCLUDED HOLDING OF PERIODICAL MEETINGS/ CONFERENCES OF THE MEMBERS AND THE MEDICAL PROFESSION IN GENERAL, TO PUBLISH AND C IRCULATE OFFICIAL JOURNALS, CONDUCT EDUCATIONAL CAMPAIGNS IN INDIA, ENCOURAGE MEDICAL RESEARCH ETC . 2.1. THE AO FURTHER OBSERVED AS UNDER: THE ACTIVITIES CARRIED OUT BY IMA CAN BE REGARDED A S FALLING WITHIN THE SCOPE OF GENERAL PUBLIC UTILITY. IT IS S EEN THAT DURING THE ASSESSMENT YEAR 2010-11, THE ASSESSEE IS IN REC EIPT OF INCOME OF RS. 9.53 CRORES FROM VARIOUS SOURCES. ON EXAMINATION OF DETAILS OF THE ABOVE IT IS SEEN T HAT SOME OF THE RECEIPTS ARE ARISING OUT OF COMMERCIAL TRANSACTION WITH OUTSIDERS WHO ARE NON-MEMBERS OF LMA. 'A DISCU SSION OF SOME OF THESE IS DONE IN THE SUCCEEDING PARAGRAPHS. 3. ENDORSEMENT MONEY: THE LMA HAS RECEIVED ENDORSEM ENT MONEY OF RS. 1.89 CRORE DURING THE YEAR. IT IS SEEN THAT THE SAME HAS BEEN RECEIVED FOR MAKING ENDORSEMENT OF THE 'AT TRIBUTES' OF PRODUCTS OF THE FOLLOWING CORPORATE ENTITIES:- A) PEPSICO HOLDING PVT. LTD. B) DABUR INDIA LTD. C) RECKITT BENCKISER OF INDIA LTD. D) ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. E) PROCTER & GAMBLE HOME PRODUCTS LTD. F) ABBOTT INDIA LTD. 3 ITA NO. 2091/DEL/2014 SINCE ALL OF THE ABOVE AGREEMENTS ARE DRAWN ALONG S IMILAR LINES, FOR THE PURPOSE OF ANALYSIS, THE AGREEMENT W ITH MIS. PEPSICO IS HEREAFTER REFERRED TO. SOME OF THE SALIE NT FEATURES OF THE AGREEMENT INCLUDE: - IN LIEU OF ENDORSING THE PRODUCTS OF THE COMPANY, T HE IMA IS PAID A CONSIDERATION . - AS PER THE AGREEMENT, UPON ENDORSEMENT OF THE ATTR IBUTES OF THE PRODUCTS BY THE IMA, THE COMPANY ACQUIRES THE R IGHT TO USE AND REUSE THE SAME IN VARIOUS MEDIA, ON PRODUCT S PACKAGING, AT POINTS OF SALES/DISPLAY ETC. (CLAUSE- 5) THIS INCLUDES PROJECTING IMA NAME, REPRESENTATION, ACRON YM, IMA LOGO, CERTIFICATION STATEMENTS, TESTIMONIAL OR ANY OTHER REPRESENTATION MUTUALLY AGREED BETWEEN THE COMPANY AND THE IMA. - ON ITS PART, THE COMPANY MAKES CERTAIN CLAIMS WITH RESPECT TO ITS PRODUCTS WHILE IMA ENDORSE THE PRODU CT PACKAGING AND CLAIMS MADE BY THE COMPANY.(CLAUSE-3. 1 TO 3.3) - CLAUSE 4 OF THE SAID DEALS WITH AGREEMENT CONSIDERATION/PAYMENT TERMS, THE TOTAL CONSIDERATION (RS. 1.38 CRORE IN CASE OF MIS PEPSIC O) IS TO BE PAID OVER A PERIOD OF3 YEARS WITH RS. 46 LACS PA ID DURING YEAR UNDER CONSIDERATION. - IN LIEU OF THIS, IMA GRANTS MIS. PEPSICO EXCLUSIVE NON-SUB LICENSABLE RIGHT TO USE ATTRIBUTES TOGETHER WITH TH E MANUFACTURE, DISTRIBUTION AND SALE OF ITS SPECIFIED PRODUCTS (CLAUSE-5.1) . - FURTHER, ON PERUSAL OF THE AGREEMENT BETWEEN THE TW O IT IS SEEN THAT THERE IS ALSO A CLAUSE OF EXCLUSIVITY (C1 AUSE-8.4), WHICH STIPULATES THAT THE IMA IS NOT TO. PROVIDE SI MILAR SERVICES FOR ANY CAPTIVITIES PRODUCTS . - CLAUSE-8.6 OF THE AGREEMENT LAYS DOWN THAT THE STAT US OF THE PARTIES IS THAT OF CONTRACTING PARTIES WITH RESPECT TO EACH OTHER. 4 ITA NO. 2091/DEL/2014 - FURTHER, CLAUSE-SI L? OF THE AGREEMENT PROHIBITS PU BLIC DISCLOSURES OF THE EXISTENCE OR TERMS OR CONDITIONS OF THE SAME BY IMA WITHOUT PRIOR WRITTEN CONSENT OF MIS PE PSICO. THUS ON PERUSAL OF THE VARIOUS CLAUSES OF ABOVE AGR EEMENTS IT IS SEEN THAT THE SAME ARE OUTRIGHT COMMERCIAL IN NATURE. 2.2. IN THE BACKDROP OF THESE FACTS THE AO CONCLUDE D THAT THE PROVISO TO SECTION 2(15) WAS ATTRACTED. HE DETERMINED THE TOTA L INCOME OF ASSESSEE AT RS. 2,68,06,291/- AS UNDER: COMPUTATION OF INCOME:- A) TOTAL INCOME AS PER STATEMENT OF COMPUTATION 9,53, 34,183/- LESS: B) RENTAL INCOME FROM M/S C.K. ASSOCIATES DELHI FOR ANNUAL LEASE OF PROPERTY CONSIDERED SEPARATELY (-) 66,00,000/- LESS: C) RENTAL INCOME FROM LETTING OF IMA BUIL DING AT KOLKATA CONSIDERED SEPARATELY (-) 11,29,408 /- INCOME FROM ABOVE (A-B-C) 8,76,04,775 /- A) APPLICATION OF INCOME AS SHOWN IN STATEMENT OF COMP UTATION 6,71,30,672/- B) LESS: CAPITAL EXPENDITURE (-) 9,20,602/- EXPENSES (A)-(B) 6,62,10,070 /- (I) NET TAXABLE INCOME UNDER THIS HEAD 2,13,94,705/- INCOME UNDER HEAD HOUSE PROPERTY 66,00,000/- ADD: (MENTIONED ABOVE) 11,29,408/ - LESS: DEDUCTION U/S 24(1) 30% OF THE ABOVE (-) 23 ,18,822/- (II) NET INCOME FROM HOUSE PROPERTY 54,10,586 /- TOTAL INCOME FOR AY 2010-11, ASSESSED AT (I+II ) 2,86,06,291 /- 3. LD. CIT(A) CONFIRMED THE AOS ACTION, INTER ALIA , OBSERVING THAT THE ASSESSEE WAS EARNING INCOME FROM COMMERCIAL ACTIVIT IES AND AS SUCH THE 5 ITA NO. 2091/DEL/2014 INCOME WAS TAXABLE AND AT THE SAME TIME THE ASSESSE E WAS NOT DOING ANY CHARITABLE ACTIVITY AT ALL WITHIN THE MEANING OF SE CTION 2(15) AND WAS NOT ELIGIBLE FOR ANY EXEMPTION U/S 11. AGGRIEVED, THE A SSESSEE IS IN APPEAL BEFORE US AND HAS TAKEN FOLLOWING GROUNDS OF APPEAL : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)[(CIT(A)] IS BAD BOTH IN THE EYE OF LAW AN D ON FACTS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(AL HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIR MING THE ACTION OF THE AO IN MAKING ASSESSMENT AT AN INCOME OF RS.2,68,06,291/- AS AGAINST NIL INCOME DECLARED BY THE ASSESSEE. 3(I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIR MING THE ACTION OF THE AO IN DENYING THE BENEFIT OF SECTION 11 OF THE ACT. (II) THAT THE DENIAL OF EXEMPTION HAS BEEN MADE DE SPITE THE ASSESSEE BEING ENGAGED IN THE CHARITABLE ACTIVITIES AND ALSO REGISTERED UNDER SECTION 12A OF THE ACT. 4(I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFI RMING THE DENIAL OF EXEMPTION MADE BY THE AO BY WRONGLY INVOK ING THE PROVISION OF SECTION 2(15) OF THE ACT. (II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW IN CONFIR MING THE ACTION OF THE AO IN DENYING THE EXEMPTION BY MISINT ERPRETING THE FACTS OF THE CASE. 5. WITHOUT PREJUDICE TO THE ABOVE AND IN THE ALTERN ATIVE THE LEARNED CIT(A) HAS ERRED BOTH ON FACTS AND IN LAW I N REJECTING 6 ITA NO. 2091/DEL/2014 THE' CONTENTION OF THE ASSESSEE THAT INCOME OF THE TRUST IS OTHERWISE NOT TAXABLE ON THE BASIS OF PRINCIPLE OF MUTUALITY. 6. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTER ANY OF THE GROUNDS OF APPEAL. 4. AT THE TIME OF HEARING LD. COUNSEL FOR THE ASSES SEE SUBMITTED THAT FOR AY 2009-10, TRIBUNAL VIDE ITA NO. 4291/DEL/2012 HAS HELD THAT ASSESSEE WAS ELIGIBLE FOR EXEMPTION U/S 11 OF THE ACT. HE SU BMITTED THAT THE FACTS OF THE PRESENT CASE ARE IDENTICAL TO THE FACTS OF THE PRECEDING YEAR. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORD OF THE CASE. THERE IS NO DISPUT E REGARDING THE FACTS OF THE CASE AND THE SOURCE FROM WHICH AMOUNTS WERE RECEIVE D BY MEDICAL ASSOCIATION FOR ATTAINING ITS OBJECTS. WE FIND THAT THE TRIBUNAL IN PARAS 7 TO 7.3 HAS OBSERVED AS UNDER: 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT WOULD BE FIRST APP ROPRIATE TO SET OUT THE RELEVANT PROVISION NAMELY SECTION 2(15) OF THE ACT WHICH WE ARE REQUIRED TO TAKE INTO CONSIDERATION. T HE SAME IS REPRODUCED HEREUNDER:- 2(15) 'CHARITABLE PURPOSE' INCLUDES RELIEF OF THE P OOR, EDUCATION, MEDICAL RELIEF, [PRESERVATION OF ENVIRON MENT (INCLUDING WATERSHEDS, FORESTS AND WILDLIFE) AND PR ESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTO RIC INTEREST,} AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY: PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT O F GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE, I F IT INVOLVES THE 7 ITA NO. 2091/DEL/2014 CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS, OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS, FOR A CESS OR FEE OR ANY OTHER CONSIDERATION, IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION, OR RETENTION, OF THE INCOME FROM SUCH ACTIVITY:} [PROVIDED FURTHER THAT THE FIRST PROVISO SHALL NOT APPLY IF THE AGGREGATE VALUE OF THE RECEIPTS FROM THE ACTIVITIES REFERRED TO THEREIN IS [TWENTY-FIVE LAKH RUPEES] OR LESS IN THE PREVIOUS YEAR;] 7.1. THE AIMS AND OBJECTS OF THE TRUST SET OUT IN PAGE 53 IN THE MEMORANDUM OF ASSOCIATION ARE ALSO REPRODUCED FOR R EADY- REFERENCE:- III. OBJECTS 1. TO PROMOTE AND ADVANCE MEDICAL AND ALLIED SCIENCES IN ALL THEIR DIFFERENT BRANCHES AND TO PROMOTE THE IMPROVE MENT OF PUBLIC HEALTH AND MEDICAL EDUCATION IN INDIA. 2. TO MAINTAIN THE HONOUR AND DIGNITY AND TO UPHOLD THE INTEREST OF THE MEDICAL PROFESSION AND TO PROMOTE C O-OPERATION AMONGST THE MEMBERS THEREOF 3. TO WORK FOR THE ABOLITION OF COMPARTMENTALISM IN MEDICAL EDUCATION- MEDICAL SERVICES AND REGISTRATIO N IN THE COUNTRY AND THUS TO ACHIEVE EQUALITY AMONG ALL MEMB ERS OF THE PROFESSION. ' 7.2. THE METHODS FOR ATTAINING THE OBJECTS IN SUB-C LAUSE SET OUT IN PAGE 53 TO 54 ARE REPRODUCED HEREUNDER:- IV. METHODS 'FOR THE ATTAINMENT AND FURTHERANCE OF THESE OBJECT S, THE ASSOCIATION MAY- 8 ITA NO. 2091/DEL/2014 1. HOLD PERIODICAL MEETINGS AND CONFERENCES OF THE MEMBERS OF THE ASSOCIATION AND THE MEDICAL PROFESSI ON IN GENERAL. 2. ARRANGE FROM TIME TO TIME CONGRESSES, CONFERENCE S, LECTURES, DISCUSSIONS AND DEMONSTRATIONS ON ANY ASP ECT OF THE MEDICAL AND ALLIED SCIENCES. 3. PUBLISH AND CIRCULATE JOURNAL, WHICH SHALL BE TH E OFFICIAL ORGAN OF THE ASSOCIATION OF A CHARACTER SP ECIALLY ADAPTED TO THE NEEDS OF THE MEDICAL PROFESSION IN I NDIA AND WHICH SHALL UNDERTAKE PUBLICITY AND PROPAGANDA WORK OF THE ASSOCIATION THROUGH ITS COLUMNS AND PUB LISH OTHER LITERATURE IN ACCORDANCE WITH THE OBJECTS OF THE ASSOCIATION. 4. MAINTAIN A LIBRARY AND AN ASSOCIATION OFFICE. 5. PUBLISH FROM TIME TO TIME TRANSACTIONS AND OTHER PAPERS EMBODYING MEDICAL RESEARCHES CONDUCTED BY TH E MEMBERS OR UNDER THE AUSPICES OF THE ASSOCIATION. 6. ENCOURAGE RESEARCH IN MEDICAL AND ALLIED SCIENCE S WITH GRANTS OUT OF THE FUNDS OF THE ASSOCIATION, BY THE ESTABLISHMENT OF SCHOLARSHIPS, PRIZES OR REWARDS AN D IN SUCH OTHER MANNER AS MAY FROM TIME TO TIME BE DETERMINED UPON BY THE ASSOCIATION. 7. CONDUCT EDUCATIONAL CAMPAIGN AMONGST THE PEOPLE OF INDIA IN THE MATTER OF PUBLIC HEALTH AND SANITATION BY COOPERATING, WHENEVER NECESSARY, WITH DIFFERENT PUB LIC BODIES WORKING WITHIN THE SAME OBJECT. 8. ORGANISE MEDICAL CORPS FOR PROVIDING MEDICAL RELIEF DURING EPIDEMICS AND IN TIMES OF EMERGENCY. 9. CONSIDER AND EXPRESS ITS VIEWS ON ALL QUESTIONS AND THE LAWS OF INDIA OR PROPOSED LEGISLATION AFFECTING PUB LIC 9 ITA NO. 2091/DEL/2014 HEALTH, THE MEDICAL PROFESSION AND MEDICAL EDUCATIO N AND INITIATE' OR WATCH OVER OR TAKE SUCH STEPS AND ADOPT SUCH MEASURES FROM TIME TO TIME REGARDING THE SAME AS MAY BE DEEMED EXPEDIENT OR NECESSARY. 10. PURCHASE, TAKE LEASE OF OR OTHERWISE ACQUIRE, H OLD, MANAGE, LET, SELL, EXCHANGE, MORTGAGE OR OTHERWISE DISPOSE OF MOVABLE OR IMMOVABLE PROPERTY OF EVERY DESCRIPTION AND ALL RIGHTS OR PRIVILEGES NECESSARY OR CONVENIENT FOR THE PURPOSE OF THE ASSOCIATION AND I N PARTICULAR ANY LAND, BUILDING, FURNITURE, HOUSEHOLD OR OTHER EFFECTS, UTENSILS, BOOKS, NEWSPAPERS, PERIODI CALS, INSTRUMENTS, FITTINGS, APPLIANCES, APPARATUS, CONVE YANCE AND ACCOMMODATION AS AND WHEN DEEMED NECESSARY OR DESIRABLE IN THE INTEREST OF THE ASSOCIATION, SELL, DEMISE LET, HIRE OUT, MORTGAGE, TRANSFER OR OTHERWISE DISP OSE OF THE SAME. 11. ERECT, MAINTAIN, IMPROVE OR ALTER AND KEEP IN REPAIR ANY BUILDINGS FOR PURPOSE OF THE ASSOCIATION . 12. BORROW OR RAISE MONEY IN SUCH MANNER AS THE ASSOCIATION MY THINK FIT AND COLLECT SUBSCRIPTIONS AND DONATIONS FOR THE PURPOSE OF THE ASSOCIATION. 13. INVEST ANY MONEY OF THE ASSOCIATION NOT IMMEDIA TELY REQUIRED FOR ANY OF ITS OBJECTS IN SUCH MANNER AS M AY FROM TIME TO TIME BE DETERMINED BY THE ASSOCIATION. 14. ASSIST, SUBSCRIBE TO OR CO-OPERATE OR AFFILIATE OR BE AFFILIATED TO OR AMALGAMATE WITH ANY OTHER PUBLIC B ODY WHETHER INCORPORATED REGISTERED OR NOT, AND HAVING ALTOGETHER OR IN PART OBJECTS SIMILAR TO THOSE OF T HE ASSOCIATION. 15. CREATE OR ASSIST IN CREATING BRANCHES FOR ANY OF THE PURPOSES AFORESAID. 10 ITA NO. 2091/DEL/2014 16. DO ALL SUCH OTHER THINGS AS ARE COGNATE TO THE OBJECTS OF THE ASSOCIATION OR ARE INCIDENTAL OR CONDUCIVE T O THE ATTAINMENT OF THE ABOVE OBJECTS. ' (EMPHASIS IN THE PRESENT PROCEEDINGS) 7.3. IN THE FACTS OF THE PRESENT CASE SINCE THE LD. SR. DR INVITING ATTENTION TO ONLY THE AGREEMENT OF PEPSICO HAS CANV ASSED THAT IT CANNOT BE RELATED TO ANY CHARITABLE ACTIVITY AS THE OTHER COMPANIES MAY BE HEALTH RELATED AND PHARMACEUTICALS COMPANIES WE FIND ON CONSIDERING THE COPY OF THE SP ECIFIC AGREEMENT WHICH IS PLACED AT PAGES 152 TO 169 THAT THE 'ENDORSEMENT' REFERS TO 'QUAKER OATS' AND 'TROPICAN A 1 00% FRUIT JUICE AND FORTIFIED DRINKS' AS SET OUT IN PAG E 152. PER SE WE FIND NO CONFLICT IF THE ASSESSEE IN THE ADVANCEM ENT OF ITS AIMS AND OBJECTS TO PROMOTING BY IMPROVING PUBLIC H EALTH IF ON RESEARCH AND ANALYSIS IT PROPOUNDS THAT THERE ARE S IGNIFICANT HEALTH BENEFITS TO THE USES OF OATS OR DRINKING FRU IT BASED, FORTIFIED HEALTH DRINKS AS OPPOSED TO AERATED DRINK S HAVING NO HEALTH BENEFITS. IT IS NOT THE CASE OF THE REVENUE THAT THE ENDORSEMENT OF HEALTHY NUTRITION IS MEDICALLY/SCIE NTIFICALLY INCORRECT. THE ASSESSEE AS PER THE MANDATE OF ITS O BJECTS AND THE METHODS SET OUT IN CLAUSE IV(2); (3)(5) (6); (7 ) AND (16) HAS ENDORSED PRODUCTS ON THE CLAIMS OF HEALTH AND NUTRI TIONAL BENEFIT THE GRIEVANCE OF THE REVENUE APPEARS TO BE MISPLACED. THE ABOVE IS NOTWITHSTANDING THE MATERIAL FACT CONS IDERING THE JUDICIAL PRECEDENT AS LAID DOWN BY THE JURISDICTION AL HIGH COURT IN ITPO CASE (CITED SUPRA) NAMELY THAT THE DO MINANT PURPOSE OF THE ACTIVITY WAS TO MOBILIZE FUNDS FOR C HARITABLE PURPOSES AND NOT FOR ENDORSING THE PRODUCTS. IN THE ABSENCE OF ANY ADVERSE FINDING IN REGARD TO THE ACTIVITIES OF THE TRUST WE FIND THAT THE DEPARTMENT'S CASE HAS NO MERITS. IN T HE COURSE OF HEARING IT WAS SUBMITTED BY THE LD. SR. DR ON QUERY THAT THE REGISTRATION TILL DATE HAS NOT BEEN WITHDRAWN. THE DATE OF THE ASSESSMENT ORDER THE RECORD SHOWS IS 08.11.2011. TH E LD. SR. 11 ITA NO. 2091/DEL/2014 DR HAS ALSO CANVASSED THAT THE MERE FACT THAT THE A SSESSEE HAS RECEIVED FINANCIAL SUPPORT FROM THE MINISTRY OF HEA LTH AND FAMILY WELFARE WHICH FACT IT HAS BEEN SUBMITTED DOE S NOT MEAN THAT IT IS PERFORMING A CHARITABLE ACTIVITY. ON CON SIDERING THE JUDICIAL PRECEDENT CITED WE FIND THAT THE HON'BLE H IGH COURT TOOK INTO CONSIDERATION IN THE FACTS OF THE ITPO TH AT PRIME LAND WAS MADE AVAILABLE TO THE ASSESSEE TO FACILITATE IT S OBJECTS OF PROVIDING SPACE ON RENT ETC. FOR PROMOTION OF TRADE WHEREIN THE ASSESSEE A APART FROM SELLING TICKETS ETC WAS ALSO PROVIDING FOOD & BEVERAGE OUTLETS AND PROVIDING FOR WATER, EL ECTRICITY ETC IN THE FACTS OF THE PRESENT CASE ADMITTEDLY FINANCI AL SUPPORT IS ALSO PROVIDED TO THE ASSESSEE TRUST WHOSE ACTIVITIE S HAVE NOT BEEN ASSAILED TO BE CONTRARY TO THE AIMS AND OBJECT S AND WE FIND THAT MOBILIZING RESOURCES TOWARDS ITS AIMS AND OBJECTS THAT TOO WITHIN THE METHODS ENSHRINED BY THE TRUST DEED WHICH ARE PLOUGHED BACK BY THE SOCIETY TOWARDS ITS AIMS & OBJ ECTS TO OUR MINDS DOES NOT CAUSE ANY GRIEVANCE TO THE REVENUE. IT GOES WITHOUT SAYING THAT FINANCIAL SUPPORT FROM THE MINI STRY OF HEALTH AND FAMILY WELFARE TO THE ASSESSEE NECESSARI LY WOULD BE BASED ON THE FUNCTIONS PERFORMED BY THE SAID TRU ST AND WOULD NECESSARILY BE MONITORED AT EACH AND EVERY STEP AND STAGE WITH ADEQUATE CHECKS AND BALANCES AND WOULD NOT BE ALLOW ED TO BE FRITTERED AWAY CARELESSLY. ACCORDINGLY CONSIDERING THE JUDICIAL PRECEDENT CITED AND THE ARGUMENTS OF THE PARTIES BE FORE THE BENCH AND THE PECULIAR FACTS AND CIRCUMSTANCES OF T HE CASE WHICH WE HAVE BROUGHT OUT IN GREAT DETAIL IN THE EA RLIER PART OF THIS ORDER, WE HOLD THAT THE DEPARTMENTAL GROUNDS H AVE NO MERIT AND DESERVE TO BE DISMISSED . 5.1. NO CHANGE IN FACTS AND CIRCUMSTANCES OF THE C ASE, AS COMPARED TO PRECEDING YEAR IN ASSESSEES CASE, HAVE POINTED OU T BY EITHER OF THE PARTIES. THEREFORE, CONSISTENT WITH THE VIEW TAKEN BY THE TR IBUNAL IN ASSESSEES OWN CASE FOR PRECEDING YEAR I.E. AY 2009-10, WE DELETE THE ADDITION OF RS. 12 ITA NO. 2091/DEL/2014 2,68,06,291/- MADE BY THE AO AND CONFIRMED BY THE L D. CIT(A) BY INVOKING PROVISIONS OF SECTION 2(15) OF THE INCOME-TAX ACT. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCEMENT IN OPEN COURT ON 23/06/2016. SD/- SD/- (BEENA A. PILLAI) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 23/06/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.