IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘A’ BENCH, NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 4025/DEL/2012[A.Y 2009-10]

The A.D.I.T [E] Vs. Andhra Pradesh Technology INV. Circle -1 Development & Promotion Centre New Delhi 23 to 26 Institutional Area Lodhi Road, New Delhi PAN – AAATA 5160 B (Applicant) (Respondent)

Assessee By : Ms. Ekta Kumari, Adv Department By : Ms. Ritu Sharma, CIT-DR Date of Hearing : 22.11.2024 Date of Pronouncement : 18.02.2025 ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-

This appeal by the Revenue is preferred against the order of the ld. CIT(A) – XXI, New Delhi dated 17.05.2012 pertaining to A.Y 2009-10.

2. The Revenue has raised the following grounds of appeal: “1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in accepting the assessee's claim that its activities were covered under the first limb i.e. "Relief of the poor in the definition of 'Charitable Purpose' as defined in section 2(15) of the Income Tax Act, 1961.

2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in accepting the assessee's claim that the intellectual property rights, consultancy income was incidental to the assessee's activities as per MOA and was towards the relief of poor and not in the nature of business for profit.

3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the decision in the case of Thanthi Trust 247 ITR 785 (SC) applied to the assessee's case and allowing the exemption u/s. 11 without appreciating the amendment in the definition of 'charitable purpose' as per section 2(15) of the Income Tax Act, 1961 w.r.t. the activities falling under the category of 'advancement of any other object of general public utility’.

4. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing."

3. Brief facts of the case is that the assessee is a resident Trustregistered u/s 12A (a) of the I.T Act, since 23.06.2010. The assessee (APTDC)is promoted by Confederation of Indian Industry (CII), Government of Andhra Pradesh (GoAP)& Technology Information Forecasting and Assessment Council (TIFAC), is an autonomous society, registered under the Andhra Pradesh Public Societies Registration Act. APTDC has been extending techno-managerial consultancy services in the area of Technology & IPR, including promoting bamboo oriented enterprises.

4. The assessee has filed Return of income declaring Nil Income on 21.03.2011. The case was selected for scrutiny on the basis of guidelines for selection of cases for scrutiny and notice u/s 143(2) was issued on 21.09.2011.

5. The assessee has claimed that its activities fall under the limb “Relief of the poor” u/s section 2(15) as it was formed withthe sole objective to uplift Andhra Pradesh economy by providing relief to the people. This being the aim assessee society is engaged in:

➤ In promoting cottage and rural industries ➤ Art and handicrafts ➤ Provided help in marketing their Products ➤ Provide help to micro small and medium entrepreneurs technical guidance andlegal expert opinion in the matter of preserving their business rights. This is done so that they may not be deprived of such needs.

Creation of livelihood for tribal's and people depending on food ➤

products by promoting their value added products from bamboo which is available plenty in Indian forests.

Help in improving the unhealthy and unhygienic conditions of rag ➤

pickers, waste collectors and recyclers by implementing municipal solid waste management projects.

Provide better employment opportunities.

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6. The assessee has referred to its audited accounts to show that the assessee society has received three government grants for following purposes which clearly establish that the thrust of the society is on rural upliftment:

1) Grant of Rs 27,00,000/- received from Ministry of Rural development for the implem