TMI Blog2014 (12) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... maintenance, upkeep and the provision of common facilities. The total receipts of such letting out and maintenance charges during the assessment year came to ₹ 4,09,73,498/-. It is also admitted that the commercial space developed by the assessee is auctioned by it to the highest bidder. These activities that are carried on by the assessee are for consideration and purely on commercial lines and these are activities which any other real estate developer is engaged in. Considering the nature of the activities that are carried on by the assessee, the factual correctness of which is undisputed, we can only endorse the view taken by the statutory authorities that in view of the proviso to Section 2(15), the activities of the assessee d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer considered the matter and taking note of the amended provision of Section 2(15) of the Act, disallowed the exemption claimed. Accordingly, total income of ₹ 8,00,94,700/- was assessed to tax. Similarly, assessment pertaining to the A.Y. 2010-11 was also completed disallowing the exemption claimed and it is that issue which is raised in ITA No.210/2014. 4. Appeals were filed before the Commissioner of Income Tax (Appeals), who dismissed the appeals and confirmed the order of assessment. These orders were challenged before the Tribunal and the Tribunal by a common order rendered on 08.08.2014 dismissed the appeals. It is in these circumstances, the appellant has filed these appeals under Section 260(A) of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) is concerned, even according to the appellant, its activities are in advancement of objects of general public utility and it is therefore claimed that their objects are of a charitable purpose. If as contended, the objects of the appellant are in advancement of general public utility, then the appellant will have to satisfy the requirements of the first proviso to the section. This proviso shows that if the objects of an assessee involves 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, the object carried on by the assessee for advancement of general public utility shall not be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of Section 2(15) can be denied. 10. These contentions raised by the assessee will have to be appreciated with reference to the undisputed facts available on record. Before we undertake that exercise, we wish to clarify that when the above referred judgment relied on by the appellant was rendered, Section 2(15) merely provided that charitable purpose includes relief of the poor, education, medical relief and the advancement of any other object of general public utility not involving the carrying on of any activity for profit. It was considering the scope of this provision that the Apex Court held that the test which has to be applied is whether the predominant object of the activity involved in carrying out the object of general publi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome assessed was ₹ 8,00,94,700/-. It is undisputed that the appellant is charging fees for supervision and centage charges, permission for transfer of land, copy of records, cost of forms, cost of plans, booklets and that the income on this account during the assessment year 2009-10 was ₹ 1,23,11,413/-. It is also undisputed that the appellant has developed several commercial centers and rented it out and that the appellant itself is responsible for the maintenance, upkeep and the provision of common facilities. The total receipts of such letting out and maintenance charges during the assessment year came to ₹ 4,09,73,498/-. It is also admitted that the commercial space developed by the assessee is auctioned by it to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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