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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 ..... SHRI RAJPAL YADAV, JUDICIAL MEMBER For The Revenue : Shri Santosh Karnani, Sr.DR For The Assessee : Shri Sunil Talati, AR ORDER Present two appeals are directed at the instance of Revenue against separate orders of ld.CIT(A)-2, Vadodara dated 26.2.2015 and 13.5.2015 passed for Asstt.Years 2010-11 and 2011-12 respectively. 2. Revenue has taken four grounds of appeal in the Asstt.Year 2010-11 and three grounds of appeal in the Asstt.Year 2011-12. However, its grievance in both years revolves around a single issue viz. whether the assessee is entitled for benefit of section 11(1)(a) of the Income Tax Act, 1961 or not. 3. Brief facts of the case are that the assessee has filed its return of income 24.9.2010 and 23.9.2011 declaring total income at NIL in the Asstt.Years 2010-11 and 2011-12 respectively. The assessee is a Society registered under Society Registration Act, 1860. It was granted registration under section 12(A)(a) of the Income Tax Act 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 thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of water, sewage, air and ecological balances, contribute to its funds and raise funds for the same. To provide training and educational services for the study of the environmental and its protection. To maintain nurseries and orchards. In this regard it is stated that the main object of the trust is to promote and improve the surrounding environment of the organization premises and improving the health of the people. Hence the main activity of the trust is within the per view of Section 2(15) of the Income Tax Act 1961. 4.3.1. Thereafter, the appellant trust was granted registration u/s 12A and it has been allowed deduction as per provisions of section 11(1)(a). But, in the current assessment order, the AO has denied this deduction by observing that the appellant's objects does not involve relief to the poor, education, medical relief and preservation of environment including water sheds, forests and wild life. The AO has observed that the appellant's activities/services are rendered for the advancement 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 JC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as granted benefit u/s 11. In the current case also, the revenue has considered the activities of the appellant as charitable activity for previous years and have granted exemption u/s 11. Now from AY 2009-10, the main object of the appellant trust are covered by the clause relating to preservation of environment and hence, the provisions relating to advancement of any other object of general public utility are not applicable to the appellant. The AO has no where mentioned in his order that the exemption granted to the appellant by CIT as been cancelled at the time or before passing the assessment order. The Gujarat High Court in its decision mentioned above has held as follows: 5. Term Charitable Trust is defined in Section 2(15) of the Act which includes the relief to the poor, education, medical relief, preservation of environment; including water sheds, forests and wildlife and preservation of monuments or places or objections of artistic or historic interest and advancement of any other object of general public utility. Proviso to Section 2(15) and further proviso whereof inserted by Finance Act 2010 w.e.f. 1st April 2000 read, thus - provided that the adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the totality of the facts of the case. Ordinarily, Chambers of Commerce and similar organizations rendering services to their members would not be affected by the amendment and their activities would continue to be regarded as advancement of any other object of general public utility. 4.3.4. It may be mentioned here that the ITAT Mumbai Bench in its decision in the case of New Saibaba Nagar Welfare Society 25 Taxman.com 226 (Mum) has held that activity of maintenance and development of park could fall within words, 'preservation of environment' u/s 2(15). Thus, the activities of the appellant trust are in the nature of charitable activities as defined u/s 2(15) of the IT Act, 1961. Moreover, on account of similar activities, the appellant has been granted exemption u/s 11(1)(a) in preceding years and as on the date of passing of assessment order, the registration granted to the appellant trust u/s 12A was still in force. Hence, the AO is directed to grant exemption u/s 11(1)(a) to the appellant as claimed by it. Accordingly, these grounds of appeals are allowed. 6. Before embarking upon an inquiry on the view point of the AO as to whether he failed to constr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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