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TMI Blog2014 (11) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... w.e.f. 1.4.2009 and therefore notice for cancellation was issued and after detailed discussion in para 2 of the impugned order and following the decision of Amritsar Bench of the Tribunal in case of Jammu Development Authority in ITA No. 366/ASR/2012 registration was cancelled for Assessment year 2009-10. 4 Both the parties were heard in detail. 5 After considering the rival submissions we find that that this issue is squarely covered against the assessee by the decision of Chandigarh Bench of the Tribunal in case of Improvement Trust, Malerkotla V CIT, in ITA No. 380/Chde/2013 wherein identical issue was considered and decided against the assessee. The relevant finding are contained para 8 to 15 which are as under: "8. W e have heard the rival contentions and perused the record. The assessee Trust had originally filed an application for registration under section 12AA of the Act on 25.5.2006 and as the assessee was found not to have fulfilled the conditions under section 2(15) of the Act, the Commissioner of Income Tax rejected the grant of registration under section 12A of the Act. The appeal of the assessee before the Tribunal was also dismissed in ITA No. 640/Chd/2006 vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and preservation of monuments or places or objects of artistic or historic interest,] and the advancem ent of an y other object of general public utilit y: 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 an y activity in the nature of trade, comm erce 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 incom e from such activit y:] [Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is [twenty-f ive lakh rupees] or less in the previous ye ar;] 10. The issue arising before us is in relation to the amended provisions of section 2(15) of the Act under which the proviso I & II are introduced w.e.f. 01.04.2009 and in case the Trust is found to be engaged in the advancement of any other object of general public utility, then such advancement of any other object of general public utility shall not be for charitable purpose wherein it involves t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther object of general public utility shall not be a char/table 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." 7.1. Keeping in view the aforesaid provisions, the charitable purpose include relief to the poor, education, medical relief and advancement of an y other object of general public utility. In the present case, we found that the assessee-trust is carrying on various activities in the nature of trade, commerce or business and rendering its services for the purpose of trade, commerce and business because as stated above, the assessee-trust is charging huge fees on account of various facts, as mentioned above. No doubt, the assessee has given some explanation for charging fees for the afore- mentioned activities by stating that the assessee-trust is charging fees as per rules framed by the Punjab Local Bodies Govt. which is clearly the admission by the assessee-trust that the assessee-trust is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .L. chowk.' payment was made in 21.11.2001 by cheque to PWD (B &R ) for public use. (o) Grant of Rs. 1.25 lakhs to "Deaf and Dumb School" Bathinda vide Resolution No. 11 dated 14.04.2007 for the welfare of such handicap students. (p) Land reserved for 'Yatri Niwas" in Bathinda near to New Bus Stand in 49.5 Acre (free of cost). (q) Land provided for 'Approach Road' nearly 60 wide 382.4 sq. mtr. Construction cost is nearly Rs. 23.67 lacs approved vide Resolution No.2l dated 11.10.2007 (free of cost)." After perusing the aforesaid activities, we are of the view that-the Id. appellate authority has rightly held that the land of the assessee trust is the same category of other real estate products available in the market offered by the private colonizers and real estate agents. Because the assessee advertised this value added product widely in print as well as electronic media so as to attract a large number of customers/clients from all the general public including the financially sound persons from the public. 12. The assessee Trust before us is the Improvement Trust, Malerkotla and the facts of the present case are identical to the facts of Improvement Trust, Bath ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same parity of reasoning is squarely applicable and the reliance placed upon by the assessee on the ratio laid down by the Hon'ble Delhi High Court is misplaced. 14. W e further find that the Commissioner of Income Tax, in the order passed under section 12AA(3) of the Act had relied upon the ratio laid down by the Amritsar Bench of Tribunal in the case of Jammu Development Authority (supra), which has been confirmed by the Hon'ble Jammu & Kashmir High Court (supra) wherein it has been held as under : "1. The instant appeal under Section 260-A of the Income Tax Act, 1961 (for brevity, the Act) is directed against order dated 14.06.2012 passed by the Income Tax Appellate Tribunal, 'Amritsar, upholding the order withdrawing the status of Charitable Institution given to the appellant-assessee under Section 12AA(l)(b)(i) of the Act, The Tribunal has reached a categorical conclusion that the assessee-Jammu Development Authority cannot be regarded as an institution or trust which may have been set up to achieve the objects enumerated under Section 2 of the Act particularly in view of the addition of first and second proviso made by the Finance Act, 2008 w.e.f. 01.04.2009 to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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