9911796707
TMI Blog2011 (8) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... cts mentioned in the assessment order are that the return was filed on 31.10.2007 disclosing nil income. It was picked up for scrutiny by issuing notice u/s 143(2) on 30.7.2008 which was served on the assessee. It was found that the assessee was registered u/s 12A(a) of the Act on 09.02.1977. It has also been approved u/s 80G of the Act. The main object of the society is to promote artistic and cultural expression through dramas, music, education etc. It owned an auditorium situated at 4, Safdar Hashmi Marg, New Delhi. The auditorium is claimed to have been used for promoting the objects of the trust. The main income of the assessee consists of hiring charges of the auditorium and rental income and maintenance charges received from two tena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) allowed the appeal of the assessee by relying on the decision of the Tribunal in the case of the assessee in ITA No. 7892(Del)/91 for assessment year 2006-07, ITA No. 7893(Del)/91 for assessment year 1988-89 and ITA No. 1589(Del)/92 for assessment year 2007-08 (there seems to be some thing wrong in this part of the order). The order of the Tribunal in turn relied on the decision in the case of Galib Institute Vs. ACIT, (1995) 53 ITD 350. Aggrieved by this order, the revenue is in appeal before us. 3. The submissions of the ld. DR before us are to the effect that earning of rental income by hiring the premises and charging maintenance charges is a commercial activity, therefore, the assessee should have maintained separate books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income as business income and invoked the provision contained in section 11(4A). Since separate books of account were not maintained, he denied deduction u/s 11. The operative portion of the decision reads as under:- "In all the above cases, their Lordships were considering the words "the advancement of any other object of general public utility not involving the carrying on of any activity for profit". Their Lordships have come to the conclusion that when the predominant object was not to earn the profit but to carry out objects of general public utility, the profit earned is rent would not amount to carrying on of any activity for profit. Here, in this case also, the predominant object of the letting out of the auditorium and furniture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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