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TMI Blog2022 (8) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... ning a small scale unit for training and self sufficiency of rural poor women is of the nature of business activity which is not of charitable nature. The onus is on the assessee to prove with documentary evidence to establish that the assessee s activities are not of business nature but of charitable as claimed by the assessee. Revenue Authorities have clearly observed that the assessee s claim of relief to the poor or help to the poor is not correct since the income and expenditure statements filed by the assessee reflects substantial profits from the activities of the assessee and therefore the profit motto exists very much. It is a fact that granting of registration u/s. 12A does not confer any benefits of exemption of tax u/s. 10 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see s representative made submissions as called for. In response to the notice U/s. 142(1) dated 2/12/2014, the assessee furnished a letter dated 23/1/2013 wherein it was stated that the assessee is engaged in providing vocational training to the villagers especially to girls and women through its electric stabilizers assembly unit which is envisaged by clause 3(4) of the MoA . It is was further submitted that such assessee s activities are part of its objected listed under clause 3(1)(2) and (5) of the MoA and such income is eligible for exemption U/s. 11 of the IT Act. The assessee also claimed that the expenditure was incurred towards help to the poor in accordance with clause 3(7) of the MoA. In response to the AO s query to explain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided that the women employees and other employees who are employed on wages/salaries to fit within the spirit and meaning of relief to the poor. In view of the above observations the Ld. AO concluded that considering the business nature of the assessee s operation on commercial principles and hallow claims of help to the poor by the assessee, the activities and submissions of the assessee as well as the case laws relied on by the assessee, it is seen that the assessee is not engaged in any charitable activity at all. If the assessee s act of provisions of employment to women, even if it is taken as General Public Utility the assessee is squarely covered by the proviso to section 2(15) of the Act and moreover since the assessee is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s observation that the assessee is not engaged in any charitable activity ignoring the fact that the activity of establishing a small scale unit for training and providing self-sufficiency to rural poor women which has been accepted as charitable purpose for granting registration u/s. 12A of the Act. 7. The Assessing Officer ought to have considered that the activity of the assessee society relating to establishing a small scale unity for training and providing self-sufficiency to rural poor women as charitable purpose of the nature of relief to the poor which is legal obligation envisaged in its objects listed in the Memorandum of Association and considered as charitable activity for grant of registration U/s. 12A of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of business but of charitable and therefore the denial of exemption U/s. 11 of the IT Act, 1961 by the Ld. Revenue Authorities is not in accordance with law. Therefore, the Ld. AR pleaded that the assessee may be granted exemption U/s. 11 of the Act. 5. Per contra, the Ld. DR vehemently opposed to the submissions of the Ld. AR and heavily relied on the orders of the Ld. AO and the Ld. CIT (A). 6. We have heard both the parties and perused the material available on record as well as the orders of the Ld. Revenue Authorities. Admitted facts are that the assessee is a society registered U/s. 12A of the Act and filed its return of income within the stipulated time and claimed exemption U/s. 11 of the Act. After considering the submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and therefore the profit motto exists very much. It is a fact that granting of registration u/s. 12A does not confer any benefits of exemption of tax u/s. 10 or 11 of the Act which has to be independently decided. Considering all these facts and circumstances of the case, we are of the considered opinion that the decisions of the Ld. Revenue Authorities are fair and reasonable and does not call for any interference since the assessee s activities are not charitable in nature and therefore the exemption U/s. 11 of the Act cannot be granted to the assessee. Accordingly, we upheld the decision of the Ld. CIT(A) and dismiss the grounds raised by the assessee. 7. In the result, appeal filed by the assessee is dismissed. Pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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