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2016 (12) TMI 1420 - AT - Income TaxCanceling the registration u/s 12AA(3) - activities of the appellant institution treated as non-genuine - Held that:- AO in his assessment order dated 22.1.2016 relevant for the AY 2013-14 passed u/s. 143(3) of the I.T. Act, 1961 vide para no. 1 has observed that the assessee is engaged in the activity of organizing tours to religious and historical places in India for senior citizens. The society is purely religious and works for the charitable purposes. He further observed that if the society would have been carrying on the business activity for the motive of profit then it would have conducted a tour not to the religious place but to the places of fun and enjoyment not the religious temples but to the club and pubs, not in a second class third sleeper but luxury AC coaches would have been hired and instead of giving the knowledge of incredible India it would have given the lectures regarding dances and beaches. We find that it is a settled law when the registration was granted u/s. 12AA on the basis of objects and activities (mentioned at page no. 1 of the impugned order) and these very objects and activities are being carried out by the assessee, registration cannot be cancelled as held by the Coordinate Bench decision in the case of Sharda Educational Trust vs. CIT 2013 (5) TMI 832 - ITAT AGRA. We further find that registration cannot be cancelled by reexamination of the objects on the basis of which registration was originally granted and CIT does not have power of review. Objection of the Ld. CIT was relating to charging of fee from the passengers of Tirth Yatra’s However, on receiving of a token amount of ₹ 1000/- any person from general public can enroll for the Yatra. The said person becomes a temporary member of the society for the period of the Yatra. The total money charged from the individuals for the yatra is ₹ 21,500/- for a period of 31 days, which comes to less that ₹ 700/- daily. This includes provision of train tickets, bus hire, lodging charges, refreshments and three freshly cooked meals daily. Hence, it is established that charging such minimal amount could never be compared to an activity run with profit motive. - Decided in favour of assessee.
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