9911796707
TMI Blog2016 (2) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... catering receipts and soft drink etc cannot be treated for charitable purposes. The receipt has also became very high i.e. more 25 lakhs thereforer in view of the said circumstances we are of the view that the purpose of the assessee is not the charitable purpose and value of receipt has became more than 25 lakhs therefore the learned DIT(E) has rightly cancel the registration as per provision of 12AA(3) of the Act in accordance with law. - Decided against assessee Order required to be implemented retrospectively - Held that:- Undoubtedly, the proviso to section 2(15) of the Act is effective from the assessment year of 2009-10 but in the instance case the matter was taken by the learned DIT(E) in pursuance of report / proposal received from ADIT(E)(II)(1), Mumbai. The order nowhere speaks that the report filed by the ADIT(E)(II)(1), Mumbai is in connection of any specific year, but it is quite clear that the authority examined the record of the assessee for the year of 2009-10. When the activities of the assessee was not charitable for the period w.e.f A.Y.2009-10 then no doubt the activities of the assessee is not required to be legalized on this fact that the order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant will not be for a charitable purpose and the Trust itself becomes non-genuine for the purpose of Section 11 and therefore, the registration allowed to the Appellant was cancelled/withdrawn as non charitable trust. 3 The Director of Income-tax (Exemption) erred in holding that the activities of the Trust providing swimming pool facilities for aquatic events and training and facilities for other sports like-squash, billiards, table tennis, etc. are not charitable activities for promoting swimming and aquatic sports for which the Govt. of Maharashtra gave the lease of the land and the activities relating to canteen for sale of food and drinks are the object of the trust but not power given to the Trustees to implement its objects contrary to the Orders of the Tribunal from A.Y.1991-92 to 2006-07 and upheld by the High Court in Assessment Year 2004-05. 4. The DIT(E) erred in rejecting the Appellant's submission that the sports activities are for education of the members and students as held by the Courts and therefore, do not attract Sec.2(15) proviso. 5. The DIT(E) erred in holding that the proviso to sec.2(15) applied to the Appellant as main object of the Trust is for advanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jarat Cricket Association and the order of Income Tax Appellate Tribunal, Mumbai bench dated 10.07.2013 titled as Khar Gymkhana Vs. DIT(E), Mumbai. 4.1 As discussed above DIT(E) has granted the permission for charitable purposes whose definition has been given in section 2(15) of the Act which has been produced below for ready reference: "Charitable purpose includes relief of the poor, education, medical relief [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest] and the advancement of any other object of general public utility". Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention of the income from such activity. Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f its activities, he- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. [(1A) All applications, pending before the [Principal Chief Commissioner or] Chief Commissioner on which no order has been passed under clause (b) of sub-section (1) before the 1st day of June, 1999, shall stand transferred on that day to the [Principal Commissioner or] Commissioner and the [Principal Commissioner or] Commissioner may proceed with such applications under that sub-section from the stage at which they were on that day.] (2) Every order granting or refusing registration under clause (b) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) [or clause (aa) of sub-section (1)] of section 12A.] [(3) Where a trust or an institution has been granted registration under clause (b) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2011-12 dated 02.02.2012 stating therein that as to why the registration granted to it should not be withdrawn by the invoking provisions of section 12AA(3) of the Act. It was specifically mentioned in the notice that the activities carried out by the assessee were in nature of trade, commerce, business etc during the A.Y.2009-10. The notice contained the features of section 2(15) of the Act. In pursuance of notice Shri Arvind Dalal C.A. appeared and filed his written submission vide its letter dated 15.02.2012. 4.4. The authority has also gone through the Income and Expenditure account of the assessee. Income has been shown from the sports activities to the tune of ₹ 53,19,004/- and income from social functions has been shown to the tune of ₹ 19,39,968/- and from other activities i.e. by sale of liquor, soft drinks etc. The total sale has been shown to the tune of ₹ 2,30,34,426/- and the net income from cost of sales has been shown at ₹ 1,21,73,529/-. Besides above the club has also shown its income a sum of ₹ 6,14,126/- as miscellaneous income. These activities conducted by the assessee are commercial in nature and the income would not qualify for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
