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TMI Blog2019 (8) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the society is having commercial activities. CIT(Exemptions) observed that the society has no investment clause, amendment clause, irrevocability clause, utilization clause, or beneficiary clause in the by-laws of the society. AR could not point out that the society is dealing exclusively in imparting education which is charitable purpose from the bye-laws. In fact main object of the society is to direct, supervise and look after Sanatan Dharam High School, as well as to construct the building of the school, along with purchase movable and immovable property for the Samiti and sale it from time to time. One of the object is to collect money for the proper conduct of Samiti and to impart and sustain Indian Cultural values amongs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity of being heard as required u/s 12AA of The Income Tax Act 1961. 3) That CIT(A) has erred in law and on facts while holding, based on his suspicions, surmises and conjectures , that the resolution of the society passed as addendum 'that surplus funds will be invested as per provisions of section 11(5) of the I.T.Act ' connotes that prior to the resolution there was no charitable activity. 4) The CIT(A) has erred in law and facts while holding that running of schools is not a charitable activity as first object of the society is ' direction, supervision and looking after Sanatan Dharma High School . 5) That CIT(E) has erred in law and on facts while holding that purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant seeks leave to add, amend, delete or alter any ground(s) of appeal petition at the time of hearing of appeal, if deemed necessary, in the interest of justice equity. 3. Sanatan Dharam Shiksha Samiti, Narwana is a society registered under the Society s Act, 1860 with effect from 19.11.1974. The applicant society is having object of directing, supervising and looking after Sanatan Dharam High School, to construct the building of the school, to purchase movable and immovable property for the Samiti and sale it time to time, to collect money for the proper conduct of Samiti and to impart and sustain Indian Cultural values amongst students. This object and aim are submitted before the Tribunal as well as before the CIT(Exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder, the applicant society filed present appeal. 5. The Ld. AR submitted that the Applicant Society three schools and one college which are run at two different places/premises. The sammittee is looking after its affairs from the premises of S.D. Senior Secondary School, Canal Road, Narwana. The Sammittee has no branch. The area of operations of the Sammittee is only Narwana (District Jind) Haryana. The Ld. AR submitted that the individual balance sheets of the schools and college as on 31.03.2015 were submitted before the CIT (Exemptions). The Ld. AR submitted that the Applicant Society is in the field of education which is a charitable purpose only. The Ld. AR further submitted that all the relevant document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table Trust vs. CIT, Supreme Court of India, 2016, 73 taxmann.com 61. 7. We have heard both the parties and perused all the relevant material on the record. It is pertinent to note that from the perusal of the by-laws of the society, all the clauses are general clauses which do not point out any charitable activity. In fact, from the objectives the society will purchase and sell immovable property as per society s needs. The CIT(Exemptions) rightly observed that the society purchased the property out of surplus funds and earned rental income from the shops which have been constructed out of these funds. Thus, from these observations it can be seen that the society is having commercial activities. The CIT(Exemptions) observed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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