National Payments Corporation of India Vs CIT (Exemptions) (ITAT Mumbai)
ITAT Mumbai held that National Payments Corporation of India carries out activities which has been recognized as charitable under category of advancement of object for general public utility. Accordingly, revisionary order u/s. 263 quashed as issue already dealt in detail by AO.
Facts- This issue raised by the assessee is in respect of initiation of revisionary proceedings u/s 263 and passing the revisionary order thereafter. Broadly, the assessee’s contentions are that AO has failed to apply correct position of law as held by Ld. Commissioner of Income-tax (Exemptions), since the Ld. AO did not carry out necessary inquiries and verification while allowing exemption u/s 11 as assessee is hit by proviso to section 2(15) of the Act. According to the Ld. CIT(E), claim of exemption u/s 11 was denied to the assessee for A.Y. 2017-18 to A.Y. 2019-20 since hit by proviso to section 2(15), fact of which formed the basis for taking up the impugned revisionary proceedings.
Conclusion- In the present case, as can be seen from the objects of the assessee mentioned in its MoA, it is not in any manner involved in any activity of trade, commerce or business. Further, it is necessary to see whether the second condition of any activity of rendering any service in relation to any trade, commerce or business is applicable. Since the assessee itself is not carrying on any trade, commerce or business, it cannot be said that it is involved in any activity of rendering service in relation to any trade, commerce or business.
