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2019 (5) TMI 353 - HC - Income TaxRegistration u/s 12AA - registration denied on ground that there is no expenses for propagation of Yoga, non filing of return of income, non availability of land and holding of Bhandara - both objects and genuineness of activities need to be examined at the time of granting registration - effect of inclusion Yoga in the definition of charitable purposes by Finance Act, 2015 with effect from 01.04.2016 - HELD THAT:- Examining the finding of the CIT(E) that there were no expenses attributable to propagation of Yoga in financial statements, it may be noticed that the salary to main Yoga Teachers was not paid as they were rendering the services without any salary as depicted in the details of salary paid. The plea of the revenue that kitchen expenses were incurred for Bhandara for public would show that the activities of the trust were not genuine. In this regard, it is recorded that the said expenses were incurred for all students or teachers of the Society and sometimes for public which was a plausible explanation and it cannot be brushed aside to hold that the activities of the assessee were not genuine. The holding of Bhandara cannot be a ground to reject the registration unless it was proved that it was for any non-charitable activity or was exorbitant. So far as non-filing of return for the assessment year 2013-14 was concerned, we find that in this year, the assessee had incurred a loss of ₹ 5 lakhs and if the assessee had not filed the return for the said assessment year being loss, it could not be inferred that the activities of the assessee were not genuine. Even the CIT(E) had held that the assessee was owner of the land measuring 51 kanals and the rest of the land was in the name of other persons. The said land was sufficient for imparting Yoga training. The Tribunal had held that while considering registration u/s 12AA, the CIT(E) was required only to determine the objects of the society which undoubtedly were charitable in nature. Still further, the assessee during the proceedings had filed sufficient evidence regarding Yoga activities being carried out and had filed supporting evidence vide letter dated 14.7.2016 but the CIT(E) had failed to appreciate the same. Accordingly, the Tribunal had rightly directed the CIT(E) to grant exemption u/s 12AA to the assessee. No error could be pointed out by learned counsel for the revenue in the findings recorded by the Tribunal warranting interference by this Court. No question of law, much less, substantial question of law arises in the appeal. - Decided against revenue
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