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TMI Blog2015 (1) TMI 1488X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee against the order of the ld. CIT, Ajmer dated 23-09-2011 challenging the denial of registration u/s 12AA of the I.T. Act, 1961, on the ground that the activities of the assessee are commercial in nature and it has no element of charity. 2.1 The ld. Counsel for the assessee contends that ld. CIT dismissed the application u/s 12AA by following observation ''From the above, it appears ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The facilities which are provided to the plot holders are incidental to the commercial activity carried out by the UIT and if certain facilities like parks, community centre, road, drainage, construction of tennis Court indoor stadium and schools are provided is not only basic requirement, rather a tool of attracting investors where in the hidden cost of these facilities is already included. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... development of Ajmer city and caries out the works assigned by legislature by way of relevant laws and rules. (iii) There are various activities which are conducted by the assessee in public interest which are clearly charitable in nature, and it are not appreciated by the ld. CIT in proper manner. Merely because the activities yield surplus cannot tantamount to commercial activity as the surpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered view, the registration cannot be refused on the basis of vague findings like the "scent of commercial activity" and accounts audit being as per state govt. rules and not a CA. From the verification of the relevant Urban Development Rules, it emerges that assessee carries on various activities which appear to be charitable in nature. In our considered view, the ld. CIT has not appreciated t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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