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2016 (2) TMI 1291 - HC - Income TaxExemption u/s 11 - entitled for registration u/s 12A - Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee is entitled for registration under section 12A of the Act, even when the objects of KSRTC will fall under the limb "any other object of General Public Utility" under section 2(15) of the IT Act and the activities of BMTC under this limb will be hit by the proviso to section 2(15) of IT Act amended w.e.f. 1 .4.2009 as the transport Services are provided to all sections of the society on - commercial basis like any other private transporter and generating such huge surplus year after year and is running its activities on commercial basis? Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee is entitled for registration under section 12A of the Act, even when the functions of BMTC include providing casual contract and chartered services, including luxury buses like Volvo and Mercedes fully air-conditioned are run as well as provided on hire for the occasions like wedding, excursion, pilgrimage and rallies or whenever the general public needs dedicated buses for their travel and these are charged on commercial basis. it is also seen that BMTC is providing Advertisement space on buses to the private sector charging substantial fee, which activity is nothing but commercial activity and there is a deviation from its predominant object of providing transport service? Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee is entitled for registration under section 12A of the Act, even when the KSRTC under the head "Non operating revenue –“Non-traffic Revenue, has accounted a receipt of ₹ 135.58 crores as miscellaneous Income -which are mainly from advertisement and transportation of luggage and goods are obviously out of its commercial purpose is involved and is charging for every services provided? Whether Tribunal was correct in law in holding that the assessee is entitled for registration under section 12A of the Act. when BMTC was formed by the Government of Karnataka as a Corporation by a legislative Act and is a public limited company under section 25 of Indian Companies Act and in view of the amended provisions of Section 2(15) and as BMTC is run on commercial basis like any other private transporter, the registration granted under section 12A is rightly been cancelled? Whether Hon'ble. Tribunal was right in following the judgment of Hon'ble High Court in the case of the KIADB wherein it is held that the first proviso to section 2(15), which was introduced by Finance Act, 2008 w.e.f. 01.04.2009, cannot be invoked by the registering authority for the purpose of cancellation of registration under section, 12AA(3) even if the assessee is found to be carrying on of any activity in the nature of trade, commerce or business? HELD THAT:- As counsel appearing for appellant and learned counsel appearing for. Learned counsel appearing for both the parties, submitted that, subject matter involved in this appeal.
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