TMI Blog2013 (7) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure no activities relating business activities, all activities relates to prepare mid-day-mean and transport to schools on conational rate with no profit basis. 2. That CIT ignored the cases in which registration of 12A was granting to various N.G.O. by various CITs including present CIT. Hence, ld.CIT has not justified in rejecting application U/s 12A of I.T.Act 1961. 3. That the assessee has right to add, delete or modify any grounds during the appeal proceeding. 3. At the time of hearing before us, it is stated by the learned counsel that the assessee-society is supplying mid-day meals to the students of primary schools in villages on contract basis as entered into by the society with Basic Shiksha Adhikari, Distric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt, its activity cannot be treated as a charitable one. She, therefore, submitted that the order of learned CIT is quite fair and reasonable. The same should be accepted. 5. We have considered the arguments of both the sides and perused the material placed before us. Section 2(15) of the Act reads as under:- 2. In this Act, unless the context otherwise requires, - [(15) charitable purpose includes relief of the poor, education, medical relief, [preservation of environmental (including watersheds, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee company and held as under:- From the perusal of documents as submitted by the society a factual inference can safely be drawn that society is supplying Mid Day Meals to the students of primary schools in villages on contract basis as entered by the society with the Basic Shiksha Adhikari, Distt. Meerut which authorizes the society to prepare the mid day meal daily and supply it to the schools. As the society is getting preparation and distribution charges per child per month from the state govt., the activity in this field can not be treated as charitable in nature. In fact this is a contractual work and leans towards business activity. In such a case, even if the contention of the applicant that it is engaged in the object of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... khs and, therefore, in view of the second proviso to Section 2(15), first proviso to Section 2(15) was not applicable. In view of the above, we are of the opinion that the activity of the assessee would fall within the ambit of an object of general public utility and, therefore, a charitable purpose under Section 2(15). 8. Learned CIT has also observed that from the profit loss account of the assessee, the expenses incurred are on telephone charges, kitchen expenses, transportation expenses, office rent and salary, therefore, the expenses are in the nature of business and administration expenses only. It is clarified by the learned counsel that the only activity carried on by the assessee during the year under consideration was for pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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