CREATIVE MUSEUM DESIGNERS Vs. INCOME TAX OFFICER, EXEMPTIONS

JUDGEMENT

(1.) This appeal by the assessee filed under Section 260 A of the Income Tax Act, 1961 is directed against the consolidated order dated 14.08.2020 passed by the Income Tax Appellate Tribunal, "B" Bench, Kolkata (Tribunal) in ITA Nos. 1147-48/Kol/2018 and 1608/Kol/2019 for the assessment years 2013- 14 to 2015-16. The assessee has raised the following substantial questions of law for consideration:-

(2.) We have heard Mr. Pratyush Jhunjhunwala, Learned Senior Standing Counsel and Mr. Uttar Sharma, Learned Junior Standing Counsel for the appellant.

(3.) The assessee is a company registered under Section 25 of the Companies Act, 1956 and has been established by the National Council of Science Museum, Ministry of Culture, Government of India. The National Council of Science Museums herein after referred to as the Council is an institution formed by the Government of India for the purpose of dissemination of knowledge of science and development of scientific temperament to the general public of the country and to ensure development of the society and the country as well. In order to effectively carry on its objects, the council established the assessee company under Section 25 of the Companies Act 1956 whose very nature was charitable and its purpose is dissemination of knowledge to the Indian society. The assessee is engaged in design and development of knowledge centers like science museums, planetariums, and other knowledge dissemination centers. It is stated that thorough research works in the field of physics, chemistry, sociology, history, finance and other related areas of study are being continuously done by the assessee and based on the research, knowledge centers are created and developed in the country. The assessee would state that there is no other agency which can execute such projects with the level of expertise and dedication as done by them. In the later part of this judgment, we shall refer to the main objects of the assessee as could be culled out from the memorandum of association of the assesee. The assessee has listed out the various turnkey projects done by them throughout the country and as to how they have state of art infrastructure which educates the general public on various subjects. It is further stated that the assessee is a non-profit company and has been established by the Government of India for developing, promoting education and general public welfare, and any surplus generated by the assessee while establishing these projects, would be ploughed back into the assessee for the purpose of developing its expertise. The assessee applied for registration under Section 12AA of the Act which was granted after the Commissioner was satisfied that the assessee fulfils the conditions required to be complied with for being entitled to registration under Section 12AA of the Act. The assessee also has been granted registration under Section 80 G (5) (vi) of the Act.