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2019 (9) TMI 341 - ITAT MUMBAIExemption u/s 11 - charitable activity u/s 2(15) - public charitable trust providing swimming pool facilities for training and for other aquatic events - assessee is also providing facilities of playing Cards and also having Permit Room, Bar and Restaurants for Catering and Soft Drinks - HELD THAT:- No hesitation in holding that the assessee is carrying out objects of general public utility, hence, fulfills the condition of charitable purpose under section 2(15) of the Act. Therefore, the assessee is entitled for exemption under section 11 of the Act. It is worth mentioning, after introduction of proviso to section 2(15) DIT(E) cancelled the registration granted under section 12A of the Act by holding that as per the said proviso, the assessee is engaged in commercial activity. Tribunal while deciding assessee’s appeal in [2018 (6) TMI 1656 - ITAT MUMBAI] reversed the decision of the DIT(E) and restored the registration granted to the assessee by holding that since there is no change in the activity of the assessee from the past assessment years, registration cannot be cancelled merely because of proviso to section 2(15) of the Act. Assessee is entitled to exemption under section 11 of the Act in respect of income generated from all other activities except the income from playing Cards for stakes. As regards the income generated from playing Cards, it is the contention of the learned Sr. Counsel for the assessee before us that the assessee does not provide facilities for playing Card for stakes but it holds Bridge Tournaments. The aforesaid claim of the assessee has to be verified by the AO and the nature of income derived from playing Cards and its entitlement to exemption under section 11 can be decided after factually examining assessee’s claim. Needless to say, the Assessing Officer shall provide adequate opportunity of being heard to the assessee before deciding the issue.
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