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TMI Blog2025 (4) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer [AO] u/s. 143(3) of the Act on 11-03-2016. The grounds taken by the revenue read as under: - 1. The Order of the Ld. CIT(A) is contrary to the law and facts of the case. 2. The Ld. CIT(A) erred in holding that the assessee is eligible for exemption u/s 11 of the Act and the provisions of section 2(15) of the Act are not attracted. 3. The CIT(A) erred in holding that the assessee is eligible for exemption u/s 11 of the Act and the activities of the assessee are not 'religious' whereas the assessee has applied the money for religious purpose. 4. The CIT(A) erred in holding that the activity of sale of devotional articles was utilized for carrying out the objects. 5. The CIT(A) ought to have appreciated that 1st prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents supporting the order of Ld. AO whereas Ld. AR referred to the findings of Ld. CIT(A) in the impugned order and also referred to the decision of Tribunal in assessee's own case for earlier years. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. Assessment Proceedings 3.1 The assessee earned gross total income of Rs. 620.30 Lacs and it filed return of income claiming exemption u/s 11/12 of the Act. The assessee is a registered public charitable trust u/s 12AA of the act and also approved u/s 80G(5)(vi). Upon perusal of activities of the Trust, Ld. AO noted that the assessee was engaged in religious activities. Since the income of the trust was applied for religious purposes, the surp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AYs 2011-12 and 2012-13. 4.2 The Ld. CIT(A) concurred that identical issue was decided favorably by the Tribunal for AYs 2011-12 and 2012-13 in ITA No.1879/Mds/2015 order dated 07-11-2016 and also in ITA No.2859/Mds/2017 order dated 10-04-2018 respectively. The relevant portion of the order for AY 2012-13 has been reproduced in the impugned order. Considering the same, Ld. AO was directed to delete the impugned addition and allow the applicable exemption to the assessee. Aggrieved, the revenue is in further appeal before us. Our findings and Adjudication 5. From the facts, it emerges that the assessee is a public charitable trust and it is registered trust u/s 12AA of the act. It is also holding valid approval u/s 80G(5). The perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nominal cost, would not be ipso fact become business. It was held by Hon'ble Court as under:- 173. It may be useful to conclude this section on interpretation with some illustrations. The example of Gandhi Peace Foundation disseminating Mahatma Gandhi's philosophy (in Surat Art Silk) through museums and exhibitions and publishing his works, for nominal cost, ipso facto is not business. Likewise, providing access to low-cost hostels to weaker segments of society, where the fee or charges recovered cover the costs (including administrative expenditure) plus nominal mark up; or renting marriage halls for low amounts, again with a fee meant to cover costs; or blood bank services, again with fee to cover costs, are not activities in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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