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TMI Blog2012 (8) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... objects of the Trust and is rendering services to the Trust without charging any fee - Services rendered by Dr.Sharma should be deemed as ‘other compensation’ - sale of CDs, medicines, etc. are intrinsically linked connected with the trust activity of teaching and conducting memory classes. In view of aforesaid, matters are set aside to the file of the DIT (Exemption) for fresh examination of the arguments and counter arguments - Decided in favor of assessee for statistical purposes. - ITA No.496/Hyd/2010 - - - Dated:- 28-6-2012 - SHRI D.KARUNAKARA RAO, AND SHRI SAKTIJIT DEY, JJ. Appellant by : Shri S.Rama Rao Respondent by : Shri K.Viswanatham O R D E R Per D.Karunakara Rao, Accountant Member: This appeal by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, learned counsel submitted relying on the papers filed before us in the form of paper-book that the temple in question is very small in size and the same was not constructed by the Trust, as evident from the Balance Sheet and fixed assets schedule. He further mentioned that the said temple was constructed by the local devotees for their use, and of course, the Trust merely permitted the erection of the temple on the premises belonging to the assessee-trust. He mentioned that the value of the said land is very meager and that could be covered by the provisions of Explanation (i) to S.80G of the Act. 5. Further, referring to the jewellery of Rs.4,21,753 meant for dressing up of Goddess Saraswathi, learned counsel mentioned that the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (b) of sub-section 2 of S.13, under the heading S.11 not to apply for certain cases , learned counsel mentioned that the Director of Income-tax( Exemption) rejected the request for renewal of approval under S.80G stating that the Trust premises was given on rent to Dr.Madugula Naga Phani Sharma, without charging adequate compensation. In this regard, the learned counsel submitted the fact that Shri Sharma is Chairman of the Trust, which is mainly engaged in conducting Memory Classes for the objects of the Trust. Further, he mentioned that Sri Sharma is an Avadhani and he spends most of his time with the Trust in conducting such Memory Classes imparting his knowledge to the students who have enrolled with the Trust for the said purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so estimate the rent payable by Shri Sharma to the Trust after hearing the assessee. The assessee is directed to submit requisite calculations of rent payable by Shri Sharma and the nature of services rendered by him. This issue is also restored to the file of the Director of Income-tax( Exemption). 10. Referring to the third objection of the Director of Incometax( Exemption) in the impugned order, about denial of deduction, instead of exemption in respect of its income in its entirety, for violation of S.13(2)(b) of the Act, learned counsel mentioned that this issue is consequential to the aspect relating to violation of provisions of S.13(2)(b ) of the Act, and in view of our findings hereinabove on that issue, on this aspect also, im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance on the following decisions of the Tribunal, and submitted that carrying on of incidental activities of sale of teaching material, medicines etc. which too promote the objects of the trust, would not in any way effect the charitable nature of the assessee trust. (a) ITO V/s. Lokmanya Shiksha Samiti (ITA No.639/Ind/2006) (2008)3 DTR 452-Ind. (b) ITO V/s. Brahman Karyalaya (73 ITD 456)-Pune (c) Prasanna Trust V/s. Director of Income-tax(Exemption) (36 SOT 135)-Bang. A copy each of the above decisions of the Tribunal have also been filed by the learned counsel for the assessee before us, alongwith written submissions filed in support of the case of the assessee 12. We heard both sides and perused the material available on record, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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