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2020 (6) TMI 291 - AT - Income TaxExemption u/s 11 - grant of registration u/s 12AA denied - establishment of prepaid taxi booths - Charitable activity u/s 2(15) - HELD THAT:- CIT(DR) fails to dispute that the CIT(Exemption) herein has nowhere recorded a specific finding as to whether the assessee's dominant activity of providing prepaid taxi booths to railway passengers prima facie involves any profit making or not - circumstances involved in the instant list that such an establishment of prepaid taxi booths is collaboration with local taxi operators; and that too at the local police level, indeed brings the sense of security amongst the general public. Mr. Meena has sought to highlight the CIT(Exemption)'s findings that the setting up of prepaid taxi booths in the name of assessee society amounts to violation of the scheme of the constitution. Also the assessee's aggregate receipts indicate its profit motive whilst earning surplus of income over expenditure right from assessment year 2013-14 to 2016-17. We find no reason to sustain the Revenue's foregoing objections. In DIT(E) vs. Sabarmati Ashram Gaushala Trust Tax [2014 (1) TMI 1539 - GUJARAT HIGH COURT] holds that it is the concerned predominant activity that has to be considered as to whether it was in the nature of trade or commerce regarding general public utility limb u/s 2(15) of the Act. Hon'ble apex court's latest decision in M/s. Ananda Social and Educational Trust [2020 (2) TMI 1293 - SUPREME COURT] holds that commencement of charitable activities is not a mandatory condition for claiming 12AA registration. We have quoted the lordship's decision keeping in mind the fact that the CIT(Exemption) has declined the assessee's impugned registration on the ground that it has not filed income tax return for four assessment years (Supra). We thus are of the opinion that the CIT(Exemption) needs to examine the entire issue of assessee's registration afresh as per law. We accept the assessee's instant sole grievance for statistical purposes and restore the instant lis back to the CIT(Exemption) for his fresh adjudication within three effective opportunities of hearing - Assessee's appeal is allowed for statistical purposes
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