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TMI Blog2016 (12) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1 of the impugned order) and these very objects and activities are being carried out by the assessee, registration cannot be cancelled as held by the Coordinate Bench decision in the case of Sharda Educational Trust vs. CIT 2013 (5) TMI 832 - ITAT AGRA. We further find that registration cannot be cancelled by reexamination of the objects on the basis of which registration was originally granted and CIT does not have power of review. Objection of the Ld. CIT was relating to charging of fee from the passengers of Tirth Yatra’s However, on receiving of a token amount of ₹ 1000/- any person from general public can enroll for the Yatra. The said person becomes a temporary member of the society for the period of the Yatra. The total money charged from the individuals for the yatra is ₹ 21,500/- for a period of 31 days, which comes to less that ₹ 700/- daily. This includes provision of train tickets, bus hire, lodging charges, refreshments and three freshly cooked meals daily. Hence, it is established that charging such minimal amount could never be compared to an activity run with profit motive. - Decided in favour of assessee. - I.T.A. No. 2425/DEL/2013 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpletion of the same. The members are passengers. The assessee is a tour operator and there is no element of charity involved. All terms and conditions for the members (yatris) were devised as an innovative method to camouflage its business activity and pass the same off as charity. 2.1 Therefore, a show cause notice for withdrawal of Registration u/s. 12AA of the I.T. Act, 1961 was issued to the assessee and in response to the same, Assessee s counsel attended the proceedings and he has stated that the assessee is doing charity and the surplus funds of the assessee trust have been used only for the purposes of objects of the trust. Copy of tickets of the passengers who undertook the journeys with the assessee society also filed and assessee relied upon the following case laws. (i) Disha India Micro Credit vs. CIT (ITAT Delhi) (ii) CTR Encylopaedia on Indian Tax Laws (ITA No. 191 Bang/2009) (iii) Gaur Brahmin Vidya Pracharini Sabha vs. CIT (ITA No. 1905/Del/2009) (iv) Padanilam Welfare Trust vs. DCIT (ITA No. 444/Mds/2010) (v) Director of Income Tax (Exemptions) vs. The Chartered Accountants Study Circle (2012) 250 CTR (Mad) 70. From the perusal of the Statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with the objects of the assessee institution, i.e. without assuming jurisdiction in accordance with. He further submitted that the only effective issue in the present appeal is against the cancellation of registration by the CIT by invoking the powers u/s. 12AA(3) on the ground that assessee s activity of organizing tours to various religious places was on commercial lines. He stated that registration u/s. 12AA was granted by CIT on 10.10.2008 on the basis of the objects reproduced at page no. 1 of the impugned order according to which assessee was to conduct pilgrimage tours to elderly people for spread of religious and charitable feelings and teachings, running medical hospital etc. However, the assessee was carrying out the activities as per the terms of the charitable objects. He further stated that when registration was granted u/s. 12AA on the basis of objects and activities as mentioned at page no. 1 of the impugned order and these very objects and activities are being carried out by the assessee, registration cannot be cancelled. In support of his contention, he referred to various following case laws. - Sharda Educational Trust vs. CIT (Central) 147 ITD 281. - Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration was granted u/s. 12AA to the assessee on the basis of objects and activities as mentioned at page no. 1 of the impugned order and these very objects and activities are being carried out by the assessee, therefore, registration cannot be cancelled. We further note that the AO in his assessment order dated 22.1.2016 relevant for the AY 2013-14 passed u/s. 143(3) of the I.T. Act, 1961 vide para no. 1 has observed that the assessee is engaged in the activity of organizing tours to religious and historical places in India for senior citizens. The society is purely religious and works for the charitable purposes. He further observed that if the society would have been carrying on the business activity for the motive of profit then it would have conducted a tour not to the religious place but to the places of fun and enjoyment not the religious temples but to the club and pubs, not in a second class third sleeper but luxury AC coaches would have been hired and instead of giving the knowledge of incredible India it would have given the lectures regarding dances and beaches. We find that it is a settled law when the registration was granted u/s. 12AA on the basis of objects and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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