TMI Blog2016 (4) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... dominantly in charitable activities then the exemption granted under section 12A(a) of the Act cannot be withdrawn, but only the amount spent outside the scope of the objects of the society can be taxed. On perusing the paper book filed by the assessee and examining the receipts & payment account enclosed therein, we find that the assessee trust is conducting multi various activities which appears to be charitable. However, in the interest of justice, we remit the matter back to the file of the learned Commissioner of Income Tax to examining the paper book filed before us by the assessee and to verify the activities conducted by the assessee and also any other relevant material which was not before the learned Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax observed as follows:- i) The assessee had stated in the Form C filed before the Home Ministry stating that the assessee is a Christian organization. ii) The society was running an ITI and women s hostel on commercial basis and no separate books of accounts were maintained for those activities. iii) The society had incurred expenditure on diocese functions which is religious in nature. 4. After further examination of the activities of the assessee trust the learned Commissioner of Income Tax, decided to cancel the registration granted under section 12A(a) of the Act due to the following reasons:- a) In the show cause notice, it was mentioned that the society has mentioned in Form-C as Christian. This fact was not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, which presupposes that at least 85% of the income of the society is applied for charitable purposes in India during the relevant previous year. This statutory condition has, therefore, not been met for any of these three financial years. This fact of non-compliance of the statutory condition was not disputed by the assessee society in its reply. The same implies that the society has violated the condition and hence the society is not entitled for Registration under section 12AA of the IT Act, 1961. f) Against the refusal of granting exemption uls 80G, almost in similar conditions, the society has gone on appeal to ITAT and Hon'ble ITAT, Chennai has upheld the contention of the Department that there is no charity in the activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy come to a conclusion that there are no charitable activities in this society and has rightly denied the benefit of See 12AA of the Society. In the cases-law relied on by the assessee society, they have not incurred expenditure towards religious function and it was not mentioned that they have filed before the Home Ministry that they belonging to a particular religion. Thus, in view of the fact that in assessee's own case, the Hon'ble ITAT took the view that there is no charity, the benefits of trust are not available to this society. 5. With the above observation, the learned Commissioner of Income Tax came to the conclusion that the assessee had not complied with the provisions of section 11(1)(a) of the Act. The learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral welfare of the poor, particularly farmers and other working people as well as poor and indigent persons whatever occupations irrespective of caste, race, community or creed. c) To establish, conduct, manage, administer, equip close down or dispose off social welfare centers, social training centers, technical schools, social institutions, dispensaries, hospital, clubs, work guilds, recreational centers, orphanages, schools and other related institutions, to promote the objects of the society. 9. When the objects of the society are only for the purpose of charity, then the registration granted under section 12A(a) of the Act cannot be withdrawn unless the activities of the society are not genuine and not carried out in accordanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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