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TMI Blog2015 (12) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... i) The objects of the assessee society are multiple. Some objects when undertaken, can be commercial ventures. ii) The objects are charitable and some are not, the trustees in their, discretion can apply the income or property to those objects which are not charitable. The object of sports promotion gets blurred. iii) There is no evidence that the society has been promoted the sport of tennis. The evidence produced discloses insignificant charitable activity. iv) No evidence of any substantial activity to show the general public are benefited, is produced. v) Spot inspection suggests that the activities have not been taken up after 2003 due to personal compulsions. vi) Subscription/contribution and tournament expenses are incurre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... players of the state irrespective of political and commercial considerations and to remove all the problems of tennis players in the state. 11. To provide tennis facilities in all the districts of the state, to conduct tennis competitions and tennis coaching camps to provide free medical facilities, research centres, training centres, games and sports, yoga centres, libraries, free hostel facilities etc. to the players of tennis and to run and manage these facilities. 12. To propagate and popularise the game of tennis through sports departments and to motivate state tennis units. To organise tennis events on the occasions of days of national interest in the state. To propagate the game of tennis in rural areas and to promote this gam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of law in a group of two cases in CIT vs. Surya Educational and Charitable Trust (2013) 355 ITR 280 (P & H). It was pointed out that the Commissioner was not justified in his expectation that there should be activity at the time of application. Section 12AA(3) which empowers cancellation makes it clear that registration can be cancelled only where the activities are not carried out in conformity with the objects. The same reasoning should apply for grant of registration as well. 6.1 In yet another case of Director of Income tax vs. Foundation of Opthalmic and Optometry Research Education Centre (2013) 355 ITR 361 (Delhi) on the same subject, it was held by the High Court that merely because the activity of running an educational institut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s produced certain evidence regarding free coaching camps distribution of kits etc. registration can not be denied on the ground that the activity is insignificant. 9. Collection of entry fee and subscription /contribution and utilising the same for incurring expenditure on tournaments etc. cannot be a reason for coming to conclusion that the activity of the assessee is on commercial lines. Thus rejection of registration on this ground is bad in law. 10. The finding that the assessee society has no activity after 2003 is contrary to the facts on record, as evidenced by the income and expenditure account for the year ended 31st March, 2013. 11. In view of the above discussion we direct the Ld. CIT(A) to grant registration to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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