TMI Blog2014 (4) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... um was meant to be utilized by the educational institutions free-of-cost and was not let out whenever the educational institutions needed it - the auditorium was utilized for other activities even on occasions when the educational institutions required it – the letting out of auditorium is not the dominant object of the trust - Once it is shown that the object of the trust was advancement of education, merely because the auditorium was incidentally let out to outsiders for commercial purpose, the case would not fall in the category of "advancement of any other object of general public utility" – thus, the withdrawal of registration is not in accordance with law – the order of the DIT(E) set aside – Decided in favour of Assessee. - - - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promotion of education. The assessee owns a plot at Haji Ali, Mumbai and the approximate area is 1,00,000 sq. ft. The building consists of auditorium on the ground floor and classrooms from second to seventh floors. The building is given to Lala Lajpatrai Institute wherein junior college, senior college, law college, etc., are being run. The sixth and seventh floors are let out to run management institute. Since the assessee is not running the colleges/institutions on its own, abiding by the main object of the trust it intended to promote/establish colleges and schools and hence the aforementioned premises was let out to others for running the abovementioned institutions. The trust was granted registration from 1976 onwards and the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at a very nominal rent wherein junior college, senior college, unaided college and law college is being run. The sixth and seventh floors of the building is used for running management institute and the said premises was let out for Rs. 12 lakhs and this amount is received under the head Service charges . The auditorium is also part of the building and used mainly by the colleges. Only when the auditorium is not required for use by the colleges it is let out. It was also submitted that the auditorium is being used by the college for 209 days and it was vacant for 76 days whereas it was let out only for 80 days. Thus in an year consisting of 365 days it was used by the college free-of-cost for 209 days and let out only for 80 days that to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the earlier years under section 12A was cancelled and withdrawn, with effect from the assessment year 2009-10, under section 12AA(3) of the Act. Aggrieved, the assessee is in appeal before us. Learned counsel for the assessee placed before us a copy of the trust deed to submit that the main object of the trust was to promote education and in the said process it has let out a substantial part of the premises for a nominal rent and even the sixth and seventh floors were let out for running educational institutions, i.e., management institute. The auditorium was not let out independently since it was meant to be utilised by the educational institutions free of cost and only when the educational institutions did not require the auditorium ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h v. ITO [2008] 119 TTJ (Pune) 261 ; and (viii) Guru Nanak Public School v. DIT (E) (I. T. A. No. 3267/Del/ 2008 and 3268/Del/2008). On the other hand, the learned Departmental representative submitted that quantum of income should not be taken as basis to consider as what is the dominant object of the trust. He thus strongly relied upon the order passed by the Director of Income-tax (Exemption). We have carefully considered the rival submissions and perused the record. It is not in dispute that the main object of the trust was to promote educational activities and in that process the entire premises was let out to others who are running educational institutions. The claim of the assessee that it was let out on nominal rent, is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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