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TMI Blog2017 (10) TMI 1243X X X X Extracts X X X X X X X X Extracts X X X X ..... ct w.e.f. 1.6.1984. Main objects of the assessee have been reproduced by the ld.First Appellate Authority in its finding recorded in the Asstt.Year 2010-11. I will be reverting to that finding in the later part of this order, but it is pertinent to mention that all along in the past the assessee was granted benefit under section 11 of the Income Tax Act. The AO has denied this benefit to the assessee on account of amendment carried out in section 2(15) of the Income Tax Act which provides definition of "charitable purpose". According to the AO a proviso was inserted in section 2(15) by way of Finance Act (2) 2009. The AO was of the opinion that activities of the assessee is in the nature of business, and therefore, it is not entitled for exemption under section 11(1)(a) of the Act. He assessed taxable income of the assessee in the Asstt.Year 2010-11 at Rs. 43,07,960/- and Rs. 41,32,020/- in the Asstt.Year 2011-12. 4. The order passed in the Asstt.Year 2010-11 has been followed in the Asstt.Year 2011-12 because there is no disparity on facts. 5. I have heard ld.representatives and perused records. I find that the ld.CIT(A) has made a lucid analysis of the facts and law, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of other objects of general public for which it has charging fees. The AO further observed on the basis of the directions issued by the JCIT, Anand Range that the activity carried out by various companies or institutions as Banas Dairy, GCMMF, IRMA, Mother Dairy etc. who spends for the expenditure for the preservation of environment such as gardens and the appellant is simply a contractor and has to carry out the work as specified and agreed to maintain with the companies or institutes. Hence, the appellant is not eligible for deduction u/s 11(1)(a) of the IT Act. 4.3.2. In this regard, it is observed that the appellant has been allowed exemption u/s 11(1)(a) for last so many years and the AO has not brought out any difference between the activities of the appellant in the years preceding the current assessment year and in the current assessment year. The main objects of the appellant society are for the purposes of preservation of environment and under such circumstances, the amended provisions of the Section 2(15) relating to the receipt of fees etc. for carrying out the activities of the trust are not applicable in this case. Under such circumstances, the AO has to demonstr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(15) and further proviso whereof inserted by Finance Act 2010 w.e.f. 1st April 2000 read, thus - "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 referred to therein is twenty five lakh rupees or less in the previous year." 6. The legal controversy in the present Tax Appeal centers around the first proviso. In the plain terms, the proviso provides for exclusion from the main object of the definition of the term "Charitable purposes" and applies only to cases of advancement of any other object of general public utility. If the conditions provided under the proviso are satisfied, any entity, even if involved in advancement of any other object of general public utility by virtue to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed." 6. Before embarking upon an inquiry on the view point of the AO as to whether he failed to construe objects of the assessee as for charitable purpose or not, I deem it pertinent to take note of section 2(15) of the Act. It reads as under: "charitable purpose" includes relief of the poor, education, [yoga,] 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, unless- (i) such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and (ii) the aggregate receipts from such acti ..... 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