TMI Blog2009 (11) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... y of notes on activities, copy of income and expenditure account, receipt and payment account, balance sheet and audit report in form no.10B along with annexures. The CIT called for report from Assessing Officer as to if the assessee fulfilled the conditions requisite for grant of registration applied for. During the course of the hearing, it was submitted that trust was granted registration in earlier years. The CIT examined the objects of the society and also the activities of the trust during the last three years. The assessee was found to have awarded the scholarship, distributed sewing machines and shawls and felicitated the sportsmen/sportswomen. On the basis of activities, the CIT was of the view that society s activities were not in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to others in any shape. The CIT, therefore, came to conclusion that the assessee was not entitled for approval u/s 80G(50(vi) and accordingly application for renewal of registration u/s 80G was rejected. 2. Before us, Ld.AR of the assessee submitted that on identical facts, registration was granted in earlier years. He also submitted that in clause (a) of Article 3 of memorandum of association, the assessee has been authorized to apply the income for any other object of public utility for benefit of all sections of society irrespective of their cast, colour, creed or religion . He also submitted that giving the properties on rent is income derived from the property and, therefore, it cannot be said that assessee was engaged in business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objects of the trust will not form part of the total income. Likewise, assessee is engaged in publication of books, newspapers, etc. The amount realised is a nominal as compared to expenditure incurred. For example in F.Y. 2004- 05, the assessee incurred ₹ 1,00,966/- as against the sale from books etc. was ₹ 11,840/-. Likewise in F.Y.2005-06, the expenditure incurred was ₹ 38,000/- as against income of ₹ 9,741/-. Similarly in F.Y. 2006-07, the expenditure was ₹ 71,062/- as against income of ₹ 8,940/-. Thus, from these details, it is clear that the assessee has realized a nominal amount as against the expenditure. Therefore, it cannot be said that assessee is engaged in the business for which separate book ..... X X X X Extracts X X X X X X X X Extracts X X X X
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