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In the present case, appeal has been filed by revenue against order passed by CIT on the ground that CIT erred in allowing the appeal of the assessee ignoring the fact that though the objects of the assessee may seem to be charitable but the activities carried out by the society which yielded income to the society are commercial in nature. Held that— It is also required to be noted that assessee is engaged in research based activity which is highly cost intensive and requires continuous spending on the innovation and new developments as it is concerning with the education of the society. The Assessee has categorically stated before the Id AO as well as before Ld CIT (A) that it is charging subscription as well as consultancy fees on actual, which fact is not denied. Therefore merely earning the surplus does not result in to the conclusion, that assessee is carrying on its activities, which can be termed as business, trade, or commerce. On the basis of the discussions and observations made by this Tribunal in assessee’s own case for immediately preceding assessment years (supra), we do not find any infirmity in the observations of Ld. CIT (A). Respectfully following the decision of this Tribunal in assessee’s own case (supra) we uphold the order of Ld. CIT (A). Accordingly grounds raised by revenue stands dismissed.

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Section 2(15), 11, 12AA, 13 of Income Tax Act,1961—Charitable activity—Denial of exemption u/s 11, 12 of the act—In the present case, appeal has been filed by revenue against order passed by CIT on the ground that CIT erred in allowing the appeal of the assessee ignoring the fact that though the objects of the assessee may seem to be charitable but the activities carried out by the society which yielded income to the society are commercial in nature.

Held that— It is also required to be noted that assessee is engaged in research based activity which is highly cost intensive and requires continuous spending on the innovation and new developments as it is concerning with the education of the society. The Assessee has categorically stated before the Id AO as well as before Ld CIT (A) that it is charging subscription as well as consultancy fees on actual, which fact is not denied. Therefore merely earning the surplus does not result in to the conclusion, that assessee is carrying on its activities, which can be termed as business, trade, or commerce.

On the basis of the discussions and observations made by this Tribunal in assessee’s own case for immediately preceding assessment years (supra), we do not find any infirmity in the observations of Ld. CIT (A). Respectfully following the decision of this Tribunal in assessee’s own case (supra) we uphold the order of Ld. CIT (A). Accordingly grounds raised by revenue stands dismissed.[DCIT (EXEMPTION) CIRCLE 1 (1) , NEW DELHI VERSUS ERNET INDIA] [2018] [7] [ITCD Online] [7] [DELHI HIGH COURT]