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The Technological Institute of Textile and Science Versus Director of Income-tax, Exemption, Kolkata

2016 (4) TMI 1006 - ITAT KOLKATA

Cancellation of registration u/s. 12AA(3) - cancellation of grant of certificate u/s. 80G(5)(vi) of the Act by DIT(E), Kolkata - Held that:- The amendment brought in section 12AA(3) by adding a proviso by Finance No. 2 Act, 2004 and by Finance Act, 2008 adding proviso to section 2(15) of the Act have been discussed in great detail and laid down the principles that registration granted u/s. 12A of the Act cannot be withdrawn or cancelled by DIT by invoking the provisions of section 12AA(3) of the .....

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12AA(1)(b) of the Act but it no where empowers DIT to cancel or withdraw the registration granted u/s. 12AA of the Act. Similar is the position in respect to exemption/rejection u/s. 80G(5)(vi) of the Act in the present case in the given facts and circumstances. Accordingly, we quash the orders passed by DIT(E) cancelling the registration u/s. 12AA(3) and rejection/exemption granted u/s. 80G(5)(vi) of the Act dated 08.03.2011. - Decided in favour of assessee. - I.T.A Nos.689&690/Kol/2011 - Date .....

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2. The two interconnected issues in these two appeals of assessee is as regards to cancellation of registration u/s. 12AA(3) of the Act and cancellation of grant of certificate u/s. 80G(5)(vi) of the Act by DIT(E), Kolkata. 3. Briefly stated facts are that the assessee society is running an educational institute and running courses of B.Tech, M.Tech and MBA etc. The assessee is also running a textile division which is engaged in production of cloth and manufacturing of yarns, which is attached t .....

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the receipt of the educational institution. Hence, the institution is doing business as well as engaged in educational activity. Accordingly, according to DIT(E), in view of the proviso to section 2(15) of the Act, which came into effect from 01.04.2009 and in view of nature of activities of assessee society, the registration granted to assessee society u/s. 12AA is withdrawn. The relevant finding of DIT(E) for concluding this reads as under: Therefore, I conclude that the assessee institution i .....

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proviso debars those institution which has the business activity and as per second proviso, the business of manufacturing cloths and yarns which has the complete set up for manufacturing business and the receipts is running in several crores of rupees (Rs.6.71 crore in 2010, ₹ 8.90 in 2009 and ₹ 8.90 in 2008). As per proviso to section 2(15), the objects of the institution would not qualify for charitable activity and this will amount to an object of profit making. The institution is .....

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iety that it came into existence vide certificate dated 06.12.1985 issued by Registrar of Firms/Societies and as non-trading corporation, West Bengal by certificate dated 06.02.1985. According to Ld. Counsel, the one and only object of the Society was to run an educational institution and other incidental or ancillary activities connected to such educational institution and required for carrying on such educational activities was also carried out i.e. textile division. This is apparent from Memo .....

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he Act has been allowed by different CITs. According to him, the only ground for which registration has been cancelled by DIT(E), Kolkata vide his order u/s. 12AA(3) dated 28.03.2011 is that the society is hit by the amendment brought in section 2(15) of the Act by the Finance Act, 2008 cancelling the registration u/s. 12AA of the Act. Ld. Counsel for the assessee argued that the assessee society/institution is not hit by the amendment as brought in the statute under section 2(15) of the Act bec .....

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An entity with a charitable object of the above nature was eligible for exemption from tax under section 11 or alternatively under section 10(23C) of the Act. However, it was seen that a number of entities who were engaged in commercial activities were also claiming exemption on the ground that such activities were for the advancement of objects of general public utility in terms of the fourth limb of the definition of charitable purpose . Therefore, section 2(15) was amended vide Finance Act, 2 .....

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ns arise from this amendment - 2.1 The newly inserted proviso to section 2(15) will not apply in respect of the first three limbs of section 2(15), i.e., relief of the poor, education or medical relief. Consequently, where the purpose of a trust or institution is relief of the poor, education or medical relief, it will constitute charitable purpose even if it incidentally involves the carrying on of commercial activities. 2.2. Relief of the poor encompasses a wide range of objects for the welfar .....

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proviso to section 10(23C) which are that (i) the business should be incidental to the attainment of the objectives of the entity,and (ii) separate books of account should be maintained in respect of such business. Similarly, entities whose object is education or medical relief would also continue to be eligible for exemption as charitable institutions even if they incidentally carry on a commercial activity subject to the conditions mentioned above. 3. The newly inserted proviso to section 2(15 .....

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e, scope, extent and frequency of the activity. 3.1. There are industry and trade associations who claim exemption from tax u/s 11 on the ground that their objects are for charitable purpose as these are covered under any other object of general public utility . Under the principle of mutuality, if trading takes place between persons who are associated together and contribute to a common fund for the financing of some venture or object and in this respect have no dealings or relations with any o .....

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he principle of mutuality. However, if such organizations have dealings with non-members, their claim to be charitable organizations would now be governed by the additional conditions stipulated in the proviso to section 2 (15). 3.2. In the final analysis, however, whether the assessee has for its object the advancement of any other object of general public utility is a question of fact. If such assessee is engaged in any activity in the nature of trade, commerce or business or renders any servi .....

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n the meaning of Section 2(15), would be well advised to eschew any activity which is in the nature of trade, commerce or business or the rendering of any service in relation to any trade, commerce or business. 5. Ld. Counsel for the assessee also referred to the report of JCIT, Bhiwani Range, Bhiwani dated 31.10.2011, which was obtained by CCIT, Kolkat-III, while adjudicating an application for grant of renewal of exemption u/s. 10(23C)(vi) of the Act, in order to ascertain the veracity of the .....

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for imparting practical training to the students and is a part and parcel of carrying on educational activities. At the time of visit, I found that the boundary wall of the Engineering College and Textile Mills is common and the mill building is situated around 150 to 160 meters only and some laboratories/workshops are located in the mill building where the students of Textile Engineering are taking practical training. When I visited the mill building I have personally seen that the group of te .....

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T Senior Secondary School. At present there are 570 students doing Engineering Degree (1st, 2nd, 3rd & 4th year) in textile and 31 students are doing Master degree in textile engineering from the Institution. From the spot enquiries and visit, it is revealed that the mill is useful for Practical Training and also for their projects and research work for the textile engg. students. It is evident from the above that for the purpose of imparting practical training to the students and conducting .....

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t wherein income and expenditure account for the year ended 31.03.2008 and 31.03.2009 and 31.03.2010 are discussed, wherein huge losses incurred in textile division was referred to and the same was adjusted against the income of the assessee. According to him, this manufacturing unit i.e. textile division is incurred huge loss regularly and it is in no way helping the educational institution. He also relied on the proviso to section 2(15) of the act as brought out by Finance Act, 2008 w.e.f. 01. .....

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s and circumstances of the case. As explained by Ld. Counsel for the assessee, which was not rebutted by revenue, the Technological Institute of Textile & Science was established in the year 1943 for giving technical and formal education and since then a Textile Mill was attached with the Institute to give practical training to the students. Uptill 1985, the Institute continued as a part of Birla Education Trust and in the year 1985 it was separated from Birla Education Trust. Since 1985, th .....

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intained for practical training to the students. It is not new as far as running and maintenance of textile mill for practical training to the students is concerned. At present there are about 1700 students enjoying technical education and practical training in Textile Mill Division in the Institute as explained. The assessment of this Institute for different assessment years i.e. from A. Y. 1998-99 has been completed with full knowledge of textile mill being run to impart practical training. As .....

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ed that such amendments did not affect at all the objects of "Relief to the poor, education and medical help" and since this institution is only carrying on educational activities since 1943 and is still carrying on only educational activities and since the amendment to Sec. 2(15) did not affect the educational activities carried on by this institution and consequently the relevant exemption. 8. We find that the CCIT, Kolkata-III, vide his order No. CCIT-III/10(23C)(vi)/11-12 dated 30. .....

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10(23C)(vi) since 1985. There is nothing incriminating on record to suggest that the Textile Mill is being used for any purpose other than imparting practical training to the trainees for their projects and research work for the textile engineering students. Besides, in the last three financial years i.e. assessment year 2008-09, 2009-10 & 2010-11 the textile unit has been incurring losses. The conclusion drawn by DIT (Exemption), Kolkata, that loss of the textile unit is being adjusted agai .....

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entions of the assessee- society. The following significant facts emerge from the submissions of the Authorized Representative of the assessee-society ;- (i) The surplus accruing to the society in the course of imparting technical education is not a profit making activity and is only incidental to the main & dominant object of the society, i.e., imparting education including technical education. In any case, the textile unit has been incurring huge losses since the last four financial years. .....

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ociety along with the textile unit has been granted exemption u/s. 10(22) & 10(23C)(vi) of the Act since a number of years by the Department. (v) Practical training for award of a degree in all fields of technical education like medicine & agriculture is a pre-requisite and the concerned institutions may on other own make necessary arrangements for imparting such training. The Textile Division attached to the institute is an integral part of the technological institute and is like a hosp .....

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R.N. Mukherjee Road, Kolkata-700 001" for the purpose of the said section for the Assessment Years 2011-12 & onwards subject to the conditions mentioned hereunder: (a) the activities of the Society are genuine and are in accordance with the deed/memorandum of association of the Society and the rules regarding the objectives and the activities of the Society as well as in conformity with the provisions of Section lO(23C)(vi.) of the Income Tax Act and are carried out in accordance with .....

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uring the previous years relevant to the assessment years mentioned above otherwise than in any one or more of the forms or modes specified in sub section (5) of section 11 of the I. T. Act, 1961; d) This approval will not apply in relation to any income being profits and gains of business, unless the business is incidental to the attainment of the objectives of the Society and separate books of accounts are maintained in respect of such business; (e) the Society will regularly file its return o .....

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donations in terms of the fifteenth proviso to section 10(23C) of the Income Tax Act read with Section 115BBC of the Act; (h) the approval granted shall be subject to the provisions of the proviso to section 143(3) of the Income Tax Act; (i) the approval shall be void if it is subsequently found that it has been obtained by fraud or misrepresentation of fact; (j) the above approval is given only for the purpose of section 10(23C)(vi) of the Income-tax Act, 1961 and not for any other purpose and .....

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facts of the case that the DIT(E), Kolkata while cancelling registration vide order u/s. 12AA(3) of the Act and also withdrawal/rejection of certificate of exemption u/s. 80G(5)(vi) of the Act vide orders dated 08.03.2011 only on the basis that the assessee is doing business in production cloths and manufacturing of yarn. From this business, according to DIT(E), the assessee has turnover of several crores of rupees but earning huge losses which are eventually set off against the profits generat .....

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e assessee society is running an educational institute running courses of B. Tech, M. Tech & MBA. There is also a textile division engaged in production of cloths and manufacturing of yarn attached to the institute. He has also noted the fact that this organization is wholly and solely engaged in imparting education only and has no other activities. According to him, the textile division attached to the institution is only for imparting practical training to the students, which is part and p .....

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partment since long. Even now before us it was explained that the amendment to section 2(15) of the Act by inserting proviso was introduced by Finance Act, 2008 w.e.f. 01.04.2009 is only with respect to, the advancement of any other object of general public utility . According to assessee, this amendment has three limbs of charitable objects i.e. relief to the poor, education and medical relief, which are left completely out of the purview of such amendment. The primary object of the society is .....

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by themselves make necessary arrangement for such training like the assessee. 11. In view of these facts, the circular cited by assessee of CBDT Circular No. 11/2008 dated 19.12.2008 clearly discussed the implication arising from the insertion of proviso to section 2(15) of the Act by the Finance Act, 2008 w.e.f. 01.04.2009 vide para 2.1, which is reproduced above in para 4 at page 3 of this order wherein it is clearly said that where the purpose of a trust or institution is relief for the poor .....

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ies and these goods are sold in the market resulting in surplus. Such activities are carried on in the course of the actual carrying out of the primary purpose for which the institute is set up i.e. imparting the education and cannot be said to be an activity for profits in any sense of the term. As a matter of fact, said activities and the surplus resulting there from are only incidental to the dominant object of the Institute. Similarly the surplus accruing to the society on the sale of goods .....

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dded to section 2(15) of the Act by the Finance Act, 2008 w.e.f. 01.04.2009 and also proviso to sub-section (3) of section 12AA by the Finance No. 2 Act, 2004 for cancellation of registration and Hon ble High Court decided the issue as under: 22. We had already extracted in the preceding paragraph, the objects of the association. Going by the objects , we find that the trust falls under the head of "any other object of general public utility" and hence falls within the meaning of chari .....

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tions. .... (15) "charitable purpose" includes relief of the poor, education, medical relief, preservation of environment (including waterheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility. Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature .....

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of any activity for profit. The phrase "not involving the carrying on of any activity for profit" was omitted from the Section by the Finance Act 1983, with effect from 01.04.1984, consequent on the amendment to Section 11, where under profits and gains of business in the case of charitable or religious trust and institutions would not be entitled to exemption under that Section, except in cases where the business fulfilled the conditions underSection 11 (4). The Section was once agai .....

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he year 2008 that the advancement of any other object of general public utility shall not be a charitable purpose, if the object involved the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity. Though the section as it stood prior to the substit .....

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(1980) 121 ITR 1(Addl. Commissioner of Income-tax v. Surat Art Silk Cloth Manufacturers Association). Thus if the dominant object or the primary object was charitable, the subsidiary object for the purpose of securing the fulfillment of the dominant object would not militate against its charitable character and the purpose would not be any the less charitable. The amendment in the year 2008 made a drastic amendment to deny the status of a charitable purpose to an institution with the object of g .....

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e income from such activity, the status of the institution will not be one for 'charitable purpose'. 26. The Central Board of Direct Taxes, in paragraph 3.2 pointed out to the scope of the circular as under:- " In such a case, the object of 'general public utility' will be only a mask or a device to hide the true purpose, which is trade, commerce or business or the rendering of any service in relation to trade, commerce or business. Each case would, therefore, be decided on .....

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tion under the cloak of a trust. 28. Section 11 of the Act states that income from property held for religious or charitable purposes shall not be included in the total income of the previous year. Section 12 deals with income of trusts or institutions from contributions. Section 12A deals with making application for registration of the trust/association so that the said institution will have the benefit of exemption under Section 11 and 12 of the Act. 29. Section 12AA of the Act prescribes proc .....

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s of the trust, he has to pass an order in writing registering the trust or institution; if he is not so satisfied, he has to pass an order in writing refusing to register the trust or institution. 30. Section 12AA(3) of the Act inserted with effect from 01.10.2004 under the Finance (No.2) Act, 2004 and the amendment inserted by Finance Act, 2010, with effect from 01.06.2010 therein empowering the Commissioner to cancel the registration granted under the stated circumstances, reads as under:- Pr .....

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this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard. 31. After amendment in the year 2010, Section 12AA(3) of the Income Tax Act reads as follows: "Section 12AA(3):- Where a trust or an institution has been granted registration under clause (b) of sub-section (1) or has obtained registration at any time under section 12A as it stood before its amendment by the Finance (No.2) Act, 1996 (33 of 1996) and subsequently the Comm .....

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e Tax Act, 1961, where the grant of registration requires satisfaction about the objects of the trust as well as genuineness of the activities, for the cancellation of the registration under Section 12AA(3), all that it is insisted upon is the satisfaction as to whether the activities of the trust or institution are genuine or not and whether the activities are being carried on in accordance with the objects of the trust. Thus, even if the trust is a genuine one i.e., the objects are genuine, if .....

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the Act. The conditions under which the income of the trust would be exempted under the provisions of the Act are clearly laid down under Section 11 as well as in Section 12 of the Act. Section 11 of the Act specifically points out the circumstances under which income of the trust is not to be included in the total income of the previous year of the person. So too, Section 12of the Act on the income derived from property held for charitable or religious purposes. 34. Thus, when the assessee is i .....

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t these income from liability. These are matters of assessment and has nothing to do with the genuineness of the activity or the activities not in conformity with the objects of the trust. As rightly pointed out by learned Senior counsel appearing for the assessee, as is evident from the reading of Circular No.11 of 2008 dated 19.12.2008, the object of the insertion of first proviso to Section 2(15) of the Act was only to curtail institution, which under the garb of 'general public utility&# .....

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mpower the Commissioner to cancel a registration obtained under Section 12A as it stood prior to its amendment by theFinance (No.2) Act, 1996. SubSection (3) was inserted into the provisions of Section 12AA by theFinance (No.2) Act, 2004 with effect from 1 October 2004. As it originally stood, under subsection (3), a power to cancel registration was conferred upon the Commissioner where a trust or an institution had been granted registration under clause (b) of subsection (1) of Section 12AA. Th .....

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on at any time under Section 12A (as it stood before its amendment by theFinance (No.2) Act, 1996). As a result of the amendment, a regulatory framework is now sought to be put in place so as to cover also a trust or an institution which has obtained registration under Section 12A as it stood prior to its amendment in 1996. ........... power under Section 12AA(3) can be exercised by the Commissioner in respect of a trust registered prior to 1 June 2010. The mere fact that a part of the requisite .....

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ment and this Court had pointed out in the decision reported in 343 ITR 300 in the case of CIT Vs. Sarvodaya Ilakkiya Pannai, as under:- " In order to avail the benefit of exemption under Section 11 of the Income Tax Act, 1961, a Trust can make an application to the Commissioner for registration under Section 12A of the Income Tax Act, 1961. On receipt of the said application for registration of a trust or institution, the Commissioner should satisfy himself about the genuineness of the act .....

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Tax Act, 1961. Once such a satisfaction is arrived at by the Commissioner to grant, such registration cannot be cancelled by following the very same provision of section 12AA(b)(i) of the Income Tax Act, 1961 to go into the genuineness of the activities of the trust. However, the Commissioner is empowered to revoke the certificate in terms of Section 12AA(3) of the Income Tax Act, 1961. As Commissioner is empowered to revoke the certificate in terms of section 12AA(3) of the Income Tax Act, 1961 .....

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on are not genuine or they are not carried on in accordance with the trust/ institution, he could pass an order in writing cancelling the registration of such trust or institution. 39. Referring to Section 11 and 12A of the Act, this Court pointed out that the act of granting registration under Section 12AA(1) itself is a result of a satisfaction recorded by the Commissioner as regards the genuineness of the objects of the trust as well as the activities of the trust and once a satisfaction is a .....

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ities of the trust were not genuine but the activities of the trust were not in accordance with the objects of the trust; when the trust was registered with definite objects, carrying on such activities would be in terms of the objects for which registration was granted. 41. Referring to Section 12AA of the Income Tax Act, 1961, this Court has held as under:- " 9. Under section 12AA, the Commissioner is empowered to grant or refuse the registration and after granting registration, would be .....

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Section 12AA(3) of the Act is of any doubt for a fresh look. It is relevant herein to point out that in two other assessee's case, the Income Tax Appellate Tribunal, Ahmedabad Bench-A rendered in the case of Gujarat Cricket Association Vs. DIT (Exemption) in ITA.No.93(Ahd)/2011 dated 31.01.2012 and that of the Nagpur Bench rendered in the case of M/s.Vidarbha Cricket Association Vs. Commissioner of Income-tax-I, Nagpur in ITA.No.3/Nag/10 dated 30.05.2011, considered the said decision reporte .....

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r hold that at the time of grant of registration on 28.3.2003, the same was made taking into consideration the objects of the institution fitting in with the definition of 'charitable purpose' defined underSection 2(150 of the Act and the substitution of the Section itself came only 2008, with effect from 01.04.2009. As rightly pointed out by the learned senior counsel appearing for the assessee, the circular clearly brings out the object of the amendment and the amended provision has no .....

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he matches, which are commercial in nature, as had been found by the Income Tax Appellate Tribunal, the objects of the trust ceased to be charitable. He submitted that going by the definition of Section 2(15) of the Act, rightly, the Commissioner assumed jurisdiction underSection 12AA(3) of the Act to cancel the registration. He further pointed out that for the finding to be recorded that the activities of the trust are not genuine, one must necessarily look into the objects of the association; .....

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assessee's registration was liable to be withdrawn. 45. We do not accept the submission of learned Standing counsel appearing for the Revenue. As rightly observed by learned Senior counsel appearing for the assessee, the Revenue granted registration under Section 12AA of the Act satisfying itself as to the objects of the association befitting the status as charitable purpose as defined under Section 2(15), as it stood in 2003 and after granting the registration, if the registration is to be .....

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, then it is for the Assessing Officer to consider the effect of Section 11 of the Act in the matter of granting exemption on particular head of receipt. The mere fact that the said income does not fit in withSection 11 of the Act would not, by itself, herein lead to the conclusion that the registration granted under Section 12AA is bad and hence, to be cancelled. 46. It may be of relevance to note the language used in the definition "charitable purpose" inSection 2(15) of the Act, whi .....

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der Section 12AA of the Act is not an idle or empty formality; the Commissioner of Income-tax has to examine the objects of the trust as well as an empirical study of the past activities of the applicant; the Commissioner of Income-tax has to examine that it is really a charitable trust or institution eligible for registration; the object beneficial to a section of the public is an object of "general public utility". The Gujarat High Court held that to serve as a charitable purpose, it .....

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purpose must be directed to the benefit of the community or a section of the community; the expression "object of general public utility", however, is not restricted to the objects beneficial to the whole of mankind; an object beneficial to a section of the public is an object of general public utility; the section of the community sought to be benefited must undoubtedly be sufficiently defined and identifiable by some common quality of a public or impersonal nature. 47. The above said .....

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n (2008) 300 ITR 214(SC) in the case of Assistant Commissioner of Income Tax Vs. Surat City Gymkhana, was in the context of Section 10(23) of the Income Tax Act, 1961, nevertheless, the fact remains that the understanding of the scope of the expression "general public utility" would nevertheless is of relevance herein. Admittedly when the assessee was granted registration, the Revenue recorded its satisfaction that the objects are of charitable purpose. Thus only possible enquiry under .....

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r of the Revenue that Section 12AA(1) of the Income Tax Act, 1961 must be read along with Section 12AA(3) of the Income Tax Act, 1961 before considering the cancellation. 49. As far as the unreported decision of this Court in T.C(A).No.91 of 2013 dated 29.04.2013 (Gowri Ashram Vs. Director of Income Tax (Exemptions) is concerned, on which heavy reliance was placed by the Revenue, the said decision relates to the rejection of the registration at the threshold of the application filed for registra .....

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of Income Tax (Exemptions) is concerned, while rejecting the appeal filed by the assessee on the rejection of the application for registration, this Court observed that it was open for the assessee Society to renew its application as and when it expanded the objects of the Society and were approved by the competent Court. The rejection order passed by the Revenue was on the ground that the objects of the trust were not charitable in character. This decision also has no relevance to the case on h .....

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r only on the ground of the assessee receiving income from holding of matches which according to the assessee were not held by it. Thus, as regards the question as to whether the particular income qualified under Section 11 of the Act or not is not the same as activity being genuine or not. In the circumstances, we do not agree with the view of the Income Tax Appellate Tribunal that the order passed by the Director of Income Tax (Exemptions) was in accordance with the provisions of the Income Ta .....

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ven for rent which is a commercial venture. The subsidy received from BCCI included mainly TV Advertisements sold by BCCI for the conduct of IPL and their commercial receipts arising for IPL transactions. Therefore, the nature of receipt was important than the name of account under which it was accounted. Thus he viewed that the objects and activities would no longer come within the definition of Section 2(15)of the Act after the amendment come in effect from 01.04.2009. 52. As rightly pointed o .....

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nd developing the game of cricket, the assessee was promoting and developing cricket as an entertainment and the tickets are highly priced; here, the assessee has shifted the activities of general public utility to commercial activity for generating revenue; the public merely participate to view costly matches; hence the conditions of Section 12AA(3) were satisfied. The Income Tax Appellate Tribunal agreed with the Director of Income Tax (Exemptions) that the expression 'subsidy from BCCI .....

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any specific object of general public utility. The pattern of receipt is commercial in character and the matches conducted are not in accordance with the objects of the Association. Thus, it rejected the assessee's case and held that both the conditions under Section 12AA(3) of the Act stood attracted. 55. As seen from the observation of the Income Tax Appellate Tribunal, although generally it accepted the case of the assessee that the physical aspect of the game was one in accordance with .....

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objects of the trust and the genuineness of the activities as falling within the meaning of 'charitable purpose', as it stood in 2003. The Revenue does not deny as a matter of fact that the objects remain as it was in 2003 and there is no change in its content to call the assessee's object as not genuine. There are no materials to indicate that the grant of registration was not based on materials indicating objects of general public utility. 56.The assessee is a member of Board of C .....

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he matches. BCCI earns revenue by way of sponsorship and media rights as well as franchisee revenue for IPL and it distributes 70% of the revenue to the member cricket association. Thus the assessee is also the recipient of the revenue. Thus, for invoking Section 12AA read with Section 2(15) of the Act, Revenue has to show that the activities are not fitting with the objects of the Association and that the dominant activities are in the nature of trade, commerce and business. We do not think tha .....

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