Case Law Details
Jewellers Association Vs ACIT (ITAT Jaipur)
Held that fees like entrance fees as well as life membership are part of the corpus fund and accordingly are in the nature of capital receipt.
Facts-
The assessee society is registered u/s 12A . It is a trade association carrying out activities for upliftment of Gems & Jewellery trade and for carrying out that object is providing dharam kanta facility to trade members publishing Gems & Jewellery related journals, Gem & jewellery Bourse, organization of Gem & Jewellery trade shows and running and maintaining Janopyogi Bhavan for trade members.
The association since registration u/s 12A (a) is claiming its income as exempt u/s 11 & 12 of 1. T. Act, 1961 which was allowed to it till A.Y. 2009-10. In this year also, association continued to carry out same activities and had gross receipts from its activities amounting to Rs. 3,49,18,618/- and expenses incurred by it on carrying out its activities are Rs. 2,96,99,300/- resulting in surplus of Rs. 52,19,318/- which is being less than 15% of its income.
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