The assessee society was formed to carry out educational activities in the oil and gas industry. It acted as an interface between the oil industry, government authorities, the public, and representative bodies to promote research, assist in policy-making, and support the hydrocarbon sector. The society provided a platform for experts in the field to exchange knowledge and expertise. It was registered u/s. 12AA and granted an exemption u/s. 80G. The AO allowed the exemption u/s. 11 and 12. The CIT passed an order u/s.263, asserting that the society’s activities were commercial in nature and not charitable, thus invoking the second proviso to S.2 (15).

Held that a similar society with identical objectives had been treated as charitable. Since both societies had the same scope and purpose, the impugned order passed by the Commissioner was not sustainable.  The assessee was formed as an initiative by the Government of India highlighted that its purpose was to bring all stakeholders together, ultimately benefiting consumers. The involvement of private sector participants did not make the society’s activities commercial, as its role was to act as a facilitator for the hydrocarbon industry, supporting the sector’s growth. Order u/s.263 was not sustainable, and the society’s activities were charitable, and its non-commercial nature was upheld.  Revision order is quashed. (AY. 2014-15)