INSTITUTE OF MARKETING MANAGEMENT Vs. INSPECTING ASSISTANT COMMISSIONER
LAWS(IT)-1989-4-10
INCOME TAX APPELLATE TRIBUNAL
Decided on April 11,1989

Appellant
VERSUS
Respondents

JUDGEMENT

S. Grover, Judicial Member - (1.)THIS second appeal is directed against the order dated 24-3-1988 passed by the Commissioner of Income-tax (A)-IX, New Delhi in respect of assessment year 1984-85. The primary contention in ground No. 1 is that the learned CIT(A) erred in holding that the assessee was not entitled to total exemption under the provision of Section 11 of the Income-tax Act, 1961 in respect of its total income derived during the accounting period ending 30-9-1983. The alternative contentions are that it has been wrongly held by the CIT(A) that, (a) the activities carried on by the assessee trust were business activities yielding profits and gains within the meaning of the provisions of Section 11 (4A) of the Act and that consequently a sum of Rs. 13,46,203 was income chargeable to tax, rejecting the assessee's claim that it was not carrying on any activity other than that for the purposes of advancement of its objects and general public utility; (b) alternatively and without prejudice to the above the CIT(A) wrongly held that assessable profits and gains amounted to Rs. 3,67,700 by ignoring to deduct considerable expenditure from the gross receipts earned from carrying on the alleged business activity; (c) CIT(A) erred in treating the receipts arising from selection of personnel, course receipts, consultancy services, publication and hiring of machinery as business receipts and (d) CIT(A) erred in upholding the application of Section 11 (4A) to the case by the assessing officer for denying exemption under Section 11.
(2.)In ground No. 5 charging of interest under Section 217 is contested. In ground No. 6, which is again alternative, it has been stated that net income, if at all, should be Rs. 3,239. The last ground reads as follows:-
Assuming but not admitting that certain profits and gains arise from carrying on the impugned activity - the consequent of such assumption would lead to computation of loss under other heads of income, which is necessarily to be set off against the assessed profits and gains of business.

To understand and adjudicate the issues some history must necessarily be stated and which is, that the assessee is a Society registered under the Societies Registration Act, 1960 under registration No. 4237 dated 14-8-1969. The Society took over the assets, properties and engagements of the then unregistered institute known as "The Institute of Marketing and Management" of New Delhi. The objects of the Society listed in the Memorandum of Association must be brought in close focus and, therefore, reproduced as follows: -

The Society shall pursue the following objects on its incorporation:

1. To take over the assets, properties and engagements of the present unregistered Institute known as the "Institute of Marketing & Management" of New Delhi.

2. To stimulate and promote thought and effort towards development, education, training and research in the field of marketing and management by providing appropriate forum for exchange of knowledge, experience and ideas of sound marketing and management practices, including lectures, conferences, round tables, symposia, seminars, demonstrations, visits and conducting research studies.

3. To conduct research studies in the fields of Marketing and Management and other allied subjects of economics and other social and physical sciences.

(3.)TO provide opportunities and facilities for marketing and management studies, discussions, training and research, by cooperation with other educational and research institutions: (a) developing course of instructions in marketing and management, and to diffuse useful knowledge in allied subjects, and (b) organizing students, educationists, professionals, businessmen, industrialists and Government officials' participation therein.


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