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2022 (3) TMI 379 - AT - Income TaxDenial of exemption u/s.11 - assessee is registered as a Public Charitable Trust under the BPT Act, 1950 - denial of exemption by the AO on merits is based on the fact that the assessee was mainly pursuing objects of general public utility by getting engaged in letting out its building and halls and was hence hit by the proviso to section 2(15) - HELD THAT:- Assessee was genuinely pursuing activities in the nature of Medical help to the patients, Education expenses of the deserving students and Relief to the poor. It is discernible that albeit the assessee has the objects of ‘advancement of any other object of general public utility’ in its trust-deed, but none of such objects was actually pursued during the year under consideration. Whereas the objects and activities of the trust are germane at the time of grant of registration u/s 12AA of the Act, what becomes relevant for consideration at the time of assessment is to see which of the objects, having charitable purpose, were actually carried out so as to decide the question of exemption. The above discussion makes it graphically clear that the assessee actually pursued only the objects as classified in categories (a) to (c). viz., Medical Relief to the poor patients, Education to the deserving students and Relief to the needy sections of the society and hence shied away from taking up any of the objects in category (d), viz., advancement of any other object of general public utility. Once this is the position, it becomes explicitly clear that the proviso to section 2(15), which attracts only when objects of the category (d) above are pursued, did not trigger in the instant case. The sequitur is that the assessee is entitled to exemption. It is pertinent to mention that the AO did not dispute the fulfillment of any other requirements for claiming exemption u/s 11 of the Act. We, therefore, hold that the assessee is entitled to exemption. The impugned order is, therefore, set-aside. - Decided in favour of assessee.
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