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2018 (8) TMI 518 - HC - Income TaxCancellation of registration u/s 12AA - Exemption u/s 11 - supply of midday meals - whether preparation of food and making available the same by the assessee sub contractor to the contractor is a charitable activity? - Held that:- when a particular institution, as in the above case, is involved in implementation of welfare schemes of the Government, we cannot find any charity in that. The mere assertion that there is no profit motive will not suffice especially when for implementing the schemes the assessee takes money from the State Government or the intermediary. The Commissioner, initially, had granted registration clearly specifying the exemption to be available only on the satisfaction of the AO. The instant proceedings were on the report of the AO that the objects of the Trust are deviated from. We do not find a mere change of opinion, and the Commissioner has dealt with the transactions of the assessee and also examined the accounts for the two years, which squarely fall under the exercise as provided for under sub- Section (3) of Section 12AA. The Commissioner was satisfied that the activities of the Trust are not being carried out in accordance with the objects of the Trust. The assessee, as rightly found, is engaged in a business and there can be no registration as a charitable institution. - Decided against the assessee
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