2005 (8) TMI 585

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... includes conducting mass marriages, poor feeding, yoga classes, providing food and hostel accommodation, vocational training to handicapped persons, relief to poor sick destitutes and promoting physical, psychological and spiritual health etc. The appellant-trust started constructing building during March, 2000 and the same was completed in 2001. The appellant-trust applied for registration under section 12A of the Act on 29-11-2001. The learned Director of Income-tax (Exemptions), on the basis of enquiry conducted and from the accounts filed, concluded that the trust is carrying on activity in a commercial way by letting out a marriage hall on hire. The trust is not wholly for charitable objects. In paras 6 and 7 of his order, he conclude .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hich is not reflective of the actual hall hire charges being received as verified during the course of enquiry. However, the assessee is showing huge amounts received under the head 'Donation'. The activities of the assessee-trust are purely commercial in nature as is evident from the fact that except on the inaugural day, no other charitable activities have been carried on. Though the assessee has given a list of people who have donated for the construction of the Kalyana Mantapa and even later after the construction, the very motive of the trustees in collecting these supposed 'donations' for a purportedly charitable activity such as conduct of mass marriages and then indulge in a purely commercial activity such as letting out of the Kaly .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l Society v. CIT [2004] 90 ITD 477 (Lucknow) n Treasure Island Resorts (P.) Ltd. v. Dy. CIT [2004] 90 ITD 814 (Hyd.). He accordingly submitted that the trust is entitled to registration under section 12A of the Act. 2.2 Learned DR on the other hand strongly relied upon the order of learned DIT (Exemptions). He submitted that though various objects are stated in the trust deed, the assessee in fact is not carrying on such objects. The assessee has merely constructed a choultry, which is let on hire at hefty fees. Though the trust was established in the year 1997, till date the assessee has not conducted any mass marriages except at the time of inauguration. For conducting mass marriage, it is not necessary that assessee should have buildi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X