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TMI Blog2015 (10) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the facts and circumstances of the case as well as taken note of the fact that the assessee has already paid a sum of Rs. 40,00,00,000/- out of total outstanding demand of Rs. 199.87 crores, granted stay against the balance demand for a period of 180 days or till the disposal of appeal whichever is earlier vide order dated 28.03.2014. The relevant observation of the Tribunal while granting the stay in para 4 and 5 as under:- "4. Having considered the rival submissions as well as careful perusal of the records, we find that the object of the assessee is to provide affordable accommodation/tenements as well as other services of infrastructure to the targeted category of peoples who could not afford the accommodation at the market p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese institutions as non-charitable. The registration under Section 12A is mandatory to claim exemption under Sections 11 & 13, but registration alone cannot be treated as conclusive. It is always open to Revenue Authorities, while processing return of income of these assessees, to examine the claim of the assessees under Sections 11 and 13 and give such treated to these institutions as is warranted by the facts of the case. Revenue Authorities are always at liberty to cancel the registration under Section 12AA(3). Moreover, it may be mentioned that the benefit of Section 11 is not absolute or conclusive. It is subject to control of Sections 60 to 63. If it is found by keeping in view the provisions of Sections 60 to 63 that it is not so in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le even if public welfare is intended to be served. If the primary purpose and the predominant object are to promote the welfare of the general public the purpose would be charitable purpose. When an object is to promote or protect the interest of a particular trade or industry that object becomes an object of public utility, but not so, if it seeks to promote the interest of those who conduct the said trade or industry [CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC)]. If the primary or predominant object of an institution is charitable, any other object which might not be charitable but which is ancillary or incidental to the dominant purpose, would not prevent the institution from being a valid charity [Addl. CIT v. Surat Art Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the attainment of the objectives of the entity, and (ii) separate books of account should be maintained in respect of such business." 29. For the applicability of proviso to Section 2(15), the activities of the trust should be carried out on commercial lines with intention to make profit. Where the trust is carrying out its activities on non-commercial lines with no motive to earn profits, for fulfilment of its aims and objectives, which are charitable in nature and in the process earn some profits, the same would not be hit by proviso to section 2(15). The aims and objects of the Mere selling some product at a profit will not ifso facto hit assessee by applying proviso to Section 2(15) and deny exemption available under section 11. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 28.03.2014, the appeal of the assessee could not be heard due to the reasons recorded in the order-sheet of the appeal file. We have perused the order-sheet of the appeal file, and find that delay in hearing and disposal of appeal is not attributable to the assessee. Acordingly, in the facts and circumstances of the case and in the interest of justice, we extend the stay against balance outstanding demand for a period of 180 days or till disposal of appeal whichiever is earlier. We make it clear that the stay granted/extended by us shall stand vacated if the assessee seeks unnecessary adjournment of hearing of the appeal. 4. In the result stap application of the assessee is allowed. Order pronounced in the open court today i. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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