9911796707
TMI Blog2015 (9) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, it attracted the first provisio to Section 2(15) of the Income Tax Act, 1961. That on a proper construction of the trust deed of the appellant trust both the assessing officer as well as the learned CIT(A) ought to have held that since the activities of the appellant trust was covered by the first limb of the definition of "charitable purpose" given in Section 2(15) of the Income Tax Act, 1961 i.e. "relief to poor", the income of the appellant trust was exempt U/s. 11 of the Income Tax Act, 1961. That the learned CIT(A) erred in law as well as on facts on relying upon the judgment of Hon'ble Apex Court in the case of Indian Chamber of Commerce v. C.I.T. (101 ITR 796) which was subsequently over-ruled by a larger bench of the Hon& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. , "relief to the poor" did not hold good, that the receipt of the abovementioned amount of Rs. 10,04,016/- ,being sum of the receipts under the head "Rent of Vastn", "Scrap Sale" and "Cloth Washing" ,was business receipt. He held that these activities were hit by first proviso to section 2(15) of the Act. He also noted that nowhere it had been mentioned in the trust deed that utensils will be made available to the poor and/or needy people at a very low rate and that also for the purpose of maintenance, that the assessee's claim regarding charitable purpose did not hold good. The AO further found that the assessee had claimed an amount of Rs. 1,11,371.25 being expenses on account of chijjat. He asked the assessee to explain the mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent houses, that the dominant object of the assessee trust was not to earn profit by making vastu available to general public, that the issue regarding trade, commerce and business in the context of first proviso to Section 2(15) of the Act came up for consideration before the Hon'ble Delhi High Court in the case of the Institute of Chartered Accountants of India v. DGIT (Exemptions) [2013] 358 ITR 91. After considering the submissions of the assessee the FAA held that the Trust Deed did not mention that utensils would be made available to the poor and/or needy people at a very low rate, the assessee's claim that object and activities of the trust were relief to the poor could not be accepted. He held that the issue was covered a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as same were not asked for. 5. We have heard the rival submissions and perused the material before us. We find that the assessee a Public Charitable trust, was created vide deed of trust dated 01.06.2000, that it was granted registration u/s. l2A of the Act, w.e.f. 27.07.2001 that it was granted approval u/s. 80G(5)of the Act, in 2009, that during the year under consideration the AO held that the activities carried out by it were not eligible for claiming the exemption, that in earlier and subsequent years claim made by the assessee about exemption was accepted by the AO. But, it is not known as to whether any of the orders was passed u/s. l43(3) of the Act. During the appellate proceedings, the FAA has not fully mentioned the submission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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