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2014 (6) TMI 1048 - AT - Income TaxExemption u/s 11 - application of the Assessee for registration u/s 12AA - As per CIT-A as per the objectives stated in the amended constitution, the prime object of the Assessee is to preach and practice, teach and educate the tenets of Christianity in the district of Mayurbhanj, neighbouring districts and states. Therefore, the Trust is basically a religious trust created for the benefit of particular religious community or caste - HELD THAT:- From the Income and Expenditure account which was filed before us, we noted that the Assessee has income from sale of literature as well as sale of agricultural product. These incomes clearly show that the activities of the Assessee are in the nature of trade, commerce or business. The words used in proviso to Sec. 2(15) are “any activity in the nature of trade, commerce or business”. This denotes that the Assessee need not actually be engaged in trade, commerce or business but the activities are such which can be in the nature of trade, commerce or business. The words “activity in the nature”, in our opinion, has been used by the legislature as the legislature is fully aware that for carrying out trade, commerce or business there should be a profit motive. A trust or society which is created for charitable purposes does not have profit motive in carrying out its activities. Therefore, wherever the activities are of the nature of trade, commerce or business, it cannot be said that the trust/institution is engaged in charitable purposes. As the Assessee has income from sale of literature as well as sale of agricultural product, the aforesaid discussion proves that the activities of the trust/institution are not genuine. Even the Assessee could not prove the genuineness of the trust/institution. We, therefore, do not find any illegality or infirmity in the order of CIT as, in our opinion, any trust/institution seeking registration u/s 12AA has to be governed by the Indian Income Tax Act. We, accordingly, dismiss the appeal filed by the Assessee. - Decided against assessee.
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