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TMI Blog2010 (5) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... ee trust is carrying on the business in the nature of trade, commerce or business - for this reason denied the benefit of registration under section 12A of the Income-tax Act - IT Appeal NO. 1120 (Bang.) of 2009 - - - Dated:- 10-5-2010 - Dr. O.K. NARAYANAN, GEORGE GEORGE K., JJ. H.N. Khincha for the Appellant. Smt. Preethi Garg for the Respondent. Order Per George George K., Judicial Member. The assessee is in appeal against the order of the DIT(E) dated 25-9-2009, rejecting the assessee s application for grant of registration under section 12A of the Income-tax Act. 2. Briefly stated the facts are as follows. The applicant trust is registered under section 25 of the Companies Act. The object of the trust is to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.1 Per contra, learned DR supported the order of DIT(E) and stated that the assessee has not produced any credible evidence to show that the activity of the assessee is to cater to the poor. On the contrary, it was submitted that the assessee trust falls within the fourth limb of the definition of charitable purpose contained in section 2(15) of the IT Act. 5. We have heard the rival submission and perused the material on record. For analyzing the issue on hand, we are of the opinion that the relevant amended provision of section 2(15) of the IT Act and its proviso is to be examined and the same reads as follows : 2(15) Charitable purpose includes relief of the poor, education, medical relief, and the advancement of any other obje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent villages, as per the requirement of bank. On verifying the MoU entered into between the assessee trust with the Corporation Bank and the Vijaya Bank it is noticed that the Corporation Bank has offered a consolidated fees of Rs. 1,500 per month for the business correspondents for each location and an amount of Re. 1 for each transaction. Whereas the Vijaya Bank has offered a consolidated compensation of Rs. 2,600 per month per one sub-agent. The AR of the assessee merely asserted that the activity of the trust falls within the realm of the first limb of definition of charitable purpose under section 2(15) of the IT Act. There has been no material on record to suggest that the assessee s activity caters to the poor and can be termed as re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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