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TMI Blog2019 (3) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... owing substantial questions of law:- "1.Whether the Appellate Tribunal is right in law inholding that the income arising to the appellant Trust from 'Suguna Auditorium Hall' is from a business activity, when the dominant activity and purpose of the Trust is education, so as to attract the Proviso to Section 2(15) of the Income Tax Act, 1961? 2.Whether the Appellate Tribunal is right in law in holding that the Auditorium income is exigible to tax when such income is meant to sub serve and augment the resources for the educational activity of the appellant Trust? 3.Whether the Appellate Tribunal is right in law in holding that the income from the Auditorium is liable to tax when the Auditorium receipts are less than twenty per c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax (Appeals)-I (CIT(A)) in Appeal No.39/13-14 dated 02.06.2014. Admittedly, the revenue did not file any appeal against the said finding however, the Tribunal suo motu took up the issue and adjudicated the same and rendered a finding against the assessee. The procedure adopted by the Tribunal is impermissible. The assessee can be worse of in their appeal petition. The Revenue having not filed any appeal were not aggrieved over the finding rendered in favour of the assessee by the CIT(A). Therefore, the finding rendered by the Tribunal on the said issue needs to be set aside. Accordingly, the issue is decided in favour of the assessee and the substantial question of law No.4 is answered in favour of the assessee. 6.With regard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all is incidental to the attainment of objectives of the Trust and the assessee maintained separate books of accounts in respect of such activities and therefore, the income is eligible for exemption under Section 11 of the Act. The Tribunal did not agree with the assessee and dismissed the appeal vide the impugned order. After the impugned order was passed by the Tribunal on 29.06.2016, the assessee filed miscellaneous application in M.A.No.325/Mds/2016 requesting to recall the order dated 29.06.2016 which was dismissed. 7.The following were the main grounds canvassed by the assessee in the miscellaneous application: "8.The petitioner/appellant submits that its total receipts for the year ended 31.03.2010 is Rs. 6,27,66984/- and the au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at though the assessee placed reliance on Circular No.21 of 2016 dated 27.05.2016, the same was not placed for consideration before the Tribunal when the appeal was heard by the Tribunal on 22.06.2016. Nevertheless, the revenue atleast should have pointed out to the Tribunal regarding the circular so that the Tribunal could have considered the effect of the circular and whether the assessee's contention now sought to be advanced by the assessee is justified or not? However, such exercise was not done and partially, the assessee have to be blamed for not placing the circular before the Tribunal. The Tribunal took up the miscellaneous application and noted the contentions advanced by the assessee in the miscellaneous application, neverthe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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