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2022 (8) TMI 1085 - HC - Income TaxExemption u/s 11 - Whether activities of assessee are charitable in nature? - HELD THAT:- Decision on the entitlement of the petitioner trust to exemption would have to, in light of the prevailing law, take note of not just the dominant objects/purpose of the trust but the activities undertaken in pursuance of the objects. It must be ascertained as to whether the business activities fuel the charity or whether the charitable activities are merely incidental to the business of running the kalyana mandapam. The impugned orders of assessment have taken note of the object in clause 3(k) of the Trust Deed. At paragraph 3.2 of the impugned orders, the details of income generated from the hire of the Kalyana Mandapam as well as other sources, such as bank were taken note of. The expenses incurred have also been noted with a specific finding that the major expenses include maintenance of the Kalyana Mandapam. A perusal of the impugned orders not reveal the specific charitable activities that the petitioner has engaged in, though the show cause notice to the petitioner as to why the provisions of Section 2(15) not be invoked in its case, has evoked a reply to the effect that the main objects of the Trust are education, medical relief and relief to the poor. The critical issue continues to relate to the usage of funds by the petitioner as this would determine whether its activities are charitable or otherwise, This has then to be set and seen in the context of Section 2(15) of the Act. This exercise necessarily involves an appreciation of facts which this Court is not inclined to embark upon in terms of Article 226 of the Constitution of India. In any event, no legal infirmity is made out to warrant intervention in/with the impugned orders. Faced with this prospect, learned Senior Counsel for learned counsel on record, conveys that the petitioner wishes to withdraw the Writ Petitions, seeking liberty to file statutory appeals. Appeals challenging assessments for AYs 2009-2010 to 2012-2013 and 2016-2017 are stated to be pending before the first appellate authority. Seeing as all the appeals involve the claim of exemption under Section 11, it stands to reason that those appeals as well as the appeals that the petitioner has been granted liberty to file under this order, shall on institution, be consolidated, assigned to one appellate authority, the petitioner afforded personal hearing and orders passed thereafter, all within a period of six (6) months from the date of receipt of this order.
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