Exemption to trust cannot be denied merely for charging fee for Training, Seminars etc

Mere charging of fee from members or non-members for rendering services like training, conducting seminars would not ipso facto lead to denial of exemption. The dominant object of the assessee remains charitable and the aforesaid activities are only incidental to the main activity of the assessee. Also, the activities of the assessee are benefiting the public at large at submitted by the Ld. Counsel for the assessee. Furthermore, it is not the case of the department that any change in objects had taken place in the relevant year so as to take the assessee outside the ambit of section 2(15). The effect of the amendment has been discussed elaborately by the Honorable Delhi High Court in ITPO Case (supra) as well as the judgment of Apex Court in Andhra Pradesh Chamber of Commerce(supra) and the test of dominant object has not been altered even after the said amendment. We therefore hold that the denial of exemption under section 11 and 12 in the case of the assessee is not in accordance with law

FULL TEXT OF THE ITAT JUDGMENT

The Assessee has filed the present appeal against the impugned order dated 19/07/2016 relevant for the assessment year 2011- 12 passed by the Ld. Commissioner of Income Tax(A)-36, New Delhi on the following grounds:-

1. That the Ld. CIT(A) erred in facts and law in denying the benefit under section 11 & 12 of the Income Tax Act, 1961.

2. That the Ld. CIT(A) erred in ‘facts and law in confirming the addition of Rs. 2,61,95,214/- under Section 13(8) of the Act. 

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