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2019 (7) TMI 620 - HC - Income TaxExemption u/s 11 - denial of exemption - continued availability of registration u/s 12A(a) of the Act for the appellant as a Public Charitable Trust - CIT-A allowed exemption - finding recorded by the Tribunal is that from the objectives of the assessee trust, it is evident that trading activities indulged by them is not mentioned in the objectives of the society - the activities of the assessee society namely, procuring raw material from abroad and distributing the same will amount to pure commercial transaction because it is purely a trading activity generating substantial profit - HELD THAT:- This finding is insufficient to dislodge the order passed by the CIT(A). We say so for more than one reason. Firstly, the Tribunal was required to take note of the legal position, which prevailed at the relevant time, in fact, one of the decisions of the Tribunal which considered similar case in respect of The ACIT(Exemptions) Vs. All India Skin and Hide Tanners and Merchants Association in [2017 (10) TMI 1466 - ITAT CHENNAI] was available when the Tribunal decided the impugned appeals. In the said decision, the Tribunal elaborately discussed the issue, examined the memorandum of association of the said assessee association and held in favour of the assessee. In this case also the earlier decision of the Tribunal has been referred to. We have pointed out these orders only for the purpose that in those cases the objectives of the concerned assessee were analysed by the Tribunal. However, we find such exercise was not done in the instant case, which was required to be done. We also make it clear that we have not expressed any opinion on the merits of the matter but, what we are concerned is that, an exercise should be done to examine the contention advanced by the assessee. More particularly, the contention which were raised in this appeal and the decisions which were cited at the bar. As per assessee proceeding proposing to cancel the said registration u/s 12AA was dropped and till date the assessee is enjoying such registration. However, Mr.J. Narayanaswami, learned Senior Standing Counsel, does not have any instructions in that regard but would submit that in any event, the facts of the case is only relevant factor to be gone into. Matter requires reconsideration by the Tribunal by examining the factual matrix in greater depth. For the above reason, this appeal is allowed. The order passed by the Tribunal is set aside and the matter is remanded back to the Tribunal for fresh consideration to consider all issues that may be raised by the assessee as well as by the Revenue.
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