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TMI Blog2015 (5) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... bout the violation of the two conditions stated above. The Tribunal while deciding the matter has rightly recorded a finding that a perusal of impugned order shows that Director of Income Tax (Exemption) has not arrived at any such finding. The fact that the receipts from commercial activities are more compared to the overall receipts of the charitable organization can neither lead to the conclusion that the activities of the trust or institution are not genuine nor it can be said that the activities of the trust or institution are not being carried out in accordance with the objects of the trust or institution and therefore, the two conditions stipulated under the provisions of sub-section (3) of Section 12AA of the Act, which empowers the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Expenditure account for the financial year is reproduced as under: Expenditure F.Y.2008-09 Rs. F.Y.2009-10 Rs. To opening stock Rs.32647 189110 To Administrative expenses 16199877 18378098 To Function Cultural activities 1550373 1743629 Financial expenses 705660 430513 To Academic Related Expenses 1592707 2141630 Repairs Maintenance 3122342 3507516 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1311421 1280958 By provisions 14000 - By Other Income 470311 1317872 By Donations Charity 422612 1141550 By monthly subscriptions 426700 370996 By Closing Stock 189110 292988 TOTAL 37820941 44031674 3. The Director of Income Tax (Exemption) considering the entire material on record, by his order dated 15.12.2011, exercising his powers under the provisions of Section 12A of the Act has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed the appeal against which the present appeal is preferred by the revenue. 5. The substantial questions of law which arise for our consideration are as follows: (i) Whether the Tribunal was correct in holding that the assessee is entitled for registration under Section 12A of the Act, without appreciating the fact that, in view of amendment to Section 2(15) of the Act, running of Bar/Restaurant renting out of rooms to its members/guests and letting out choultry on commercial basis are not charitable activities' and recorded a perverse finding? (ii) Whether the Tribunal committed an error in holding that DIT (exemption) has not recorded its finding with regard to genuineness of the activities of the Trust or that the activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ases to be a charitable purpose in view of the amendment brought about to the definition of 'charitable purpose' under Section 2(15) of the Act, it is a matter to be considered by the assessing authority to extend the benefit of exemption or not and sought to justify the impugned order passed by the Tribunal. 8. We have given our thoughtful consideration to the rival contentions urged by the parties to the lis and it is not in dispute that the assessee was granted registration under Section 12A of the Act. Now the said registration is cancelled by invoking the power conferred under the provisions of Section 12AA(3) of the Act. Therefore., it is necessary to find out under what circumstances the registration granted earlier could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter has rightly recorded a finding that a perusal of impugned order shows that Director of Income Tax (Exemption) has not arrived at any such finding. The fact that the receipts from commercial activities are more compared to the overall receipts of the charitable organization can neither lead to the conclusion that the activities of the trust or institution are not genuine nor it can be said that the activities of the trust or institution are not being carried out in accordance with the objects of the trust or institution and therefore, the two conditions stipulated under the provisions of sub-section (3) of Section 12AA of the Act, which empowers the authority to cancel the registration, do not exist in the present case. The registr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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