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2018 (11) TMI 1118 - ITAT BANGALORECharitable activity - applicability of provisions of section 2(15) - allegation of the AO that the assessee was established for the purpose of promoting Indian Industry and trade and to enhance its global competitiveness by conducting and participating in Industrial trade fairs and exhibitions Indian and abroad - Held that:- The assessee is not doing any activity in respect of its stated main objects i.e. to promote training and the diffusion of knowledge relating to standards in the manufacture of Tools and Gauges to improve the standards or the connected trade therewith or with allied industries and to impart relevant and appropriate training to all those engaged in the manufacture of tools and gauges. As seen that in the present case, the assessee has taken a hall on rent and the assessee is earning huge amount of income on account of Stall Space Charges and no expenditure is incurred for carrying out the said activities as per the objects of the assessee and therefore, in the present case, we hold this that the assessee is not eligible for exemption u/s. 11 and for this, help of any authority is not required and therefore, we do not enter into this aspect of examining the applicability of various judicial pronouncements cited revenue. This is a settled position of law that at the stage of granting registration u/s 12A, only the objects as per the relevant Deed i.e. Trust Deed etc. are required to be seen and if the objects are charitable, such registration has to be granted but granting of such registration is not final and binding for granting exemption u/s 11 in assessment proceedings. In course of assessment proceedings, actual activities are to be examined and if such actual activities are not found to be charitable, exemption u/s 11 is not allowable although registration u/s 12A was granted on the basis of stated objects. We have to examine as to whether the actual activities are charitable or not and when we do so, we find that the only activity undertaken by the assessee is to take a hall on rent for ₹ 125 lacs and realize huge amount of receipts for Stall space charges ₹ 4,82,47,599/-, power ₹ 18.99 Lakhs and ₹ 4,74,305/- from Directory, total ₹ 506,20,904/-. These activities cannot be said to be charitable particularly in the absence of its correlation with the stated main objects to promote training and the diffusion of knowledge relating to standards in the manufacture of Tools and Gauges to improve the standards or the connected trade therewith or with allied industries and to impart relevant and appropriate training to all those engaged in the manufacture of tools and gauges. In view of above discussion, we reverse the order of CIT(A) and restore that of AO. - Decided in favour of revenue.
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