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TMI Blog2015 (10) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... stage of grant of registration under Section 12 A with effect from April, 2004. With there being no proper enquiry conducted by the AO into the facts of the case to determine if the manner of application of the income by the Assessee would disentitle it to exemption under Sections 11 and 12 of the Act, the Court is unable to discern any legal infirmity in the impugned orders of the CIT (A) or the ITAT. For the same reason, the Court is also not inclined to remand the matter to the AO to de novo start the exercise afresh. - Decided in favour of assessee. - ITA No. 113/2015 - - - Dated:- 1-10-2015 - S Muralidhar And Vibhu Bakhru, JJ. For the Petitioner : Mr Raghvendra K Singh, Junior Standing Counsel Mr Shikhar Garg, Adv F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lessee') in terms of which the Society's building premises at District Centre, Laxmi Nagar was let out. The lessee was to provide facilities and services like a club, pub, restaurant, bar, spa, gym, marriage functions etc. on paid basis. The Assessee was entitled to receive 14% of the total sales as share of income from the activities carried out by the lessee. 5. In the assessment order dated 9th December 2011 the AO concluded that the Society was totally engaged in commercial activities which were of non-charitable nature to which the proviso under Section 2(15) of the Act would apply. In the meanwhile, by an order 7th March 2011, the Assessee's registration under Section 12AA of the Act had been cancelled. The AO treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rying of any activity in the nature of trade, commerce or business or any activity of running any service in relation to any trade, commerce or business . 8. The submission of Mr. Raghvendra Singh, learned counsel for the Revenue, is that the activity of letting out of the premises to a lessee which is carrying on purely commercial activities, is contrary to the objects of the Assessee society. While he did not dispute that the order of the AO does not reflect the manner in which the Assessee had applied its income and whether the act of letting out was in fact the dominant activity of the Assessee, he urged that the matter should be remanded to the AO for a fresh examination after giving an opportunity to the Assessee. In response to a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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