TMI Blog2014 (6) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. These incomes clearly show that the activities of the Assessee are in the nature of trade, commerce or business. The words used in proviso to Sec. 2(15) are any activity in the nature of trade, commerce or business . This denotes that the Assessee need not actually be engaged in trade, commerce or business but the activities are such which can be in the nature of trade, commerce or business. The words activity in the nature , in our opinion, has been used by the legislature as the legislature is fully aware that for carrying out trade, commerce or business there should be a profit motive. A trust or society which is created for charitable purposes does not have profit motive in carrying out its activities. Therefore, wherever the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Not-for-profit Commission. The CIT noted that as per the document filed by the Assessee, the Assessee is stated to have been established on 21.1.1926. The Constitution, as amended on 30.4.2012, contains the objectives in the nature of religious as well as charitable purposes. CIT noted that the objectives mentioned in the Constitution of the Trust amended on 30.4.2012 states as under : Objects to preach and practice, teach and educate the tenets of Christianity in the district of Mayurbhanj, neighbouring districts and states. To rehabilitate persons affected by Leprosy and downtrodden in a charitable and holistic manner. Adherents : Christians of all denominations who contribute towards the support of the Mission are looke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-laws signed by the Secretary with the nomenclature Recent Revised‟. These bye-laws disclose the name of the Society and mentions that it is registered with the Australian Charities and Not-for-profit Commission and is incorporated in the State of Queensland, Australia and on the basis of these bye-laws, it was contended that the Society is created for care and rehabilitation of the persons affected by leprosy and downtrodden in a charitable and holistic manner in Mayurbhanj and neighbouring districts in India. The Assessee is thus established for charitable purposes. The audited report as well as audited income and expenditure account was also filed and it was contended that the Assessee is a genuine charitable trust. CIT was not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less the condition stated therein are fulfilled. The first condition for allowing the exemption u/s 11 is that the person who is in receipt of the income must have made application for registration of the trust/institution in the prescribed form as well as in the prescribed manner to the Commissioner and such trust/institution is registered u/s 12AA. The procedure for registration is given u/s 12AA. Sec. 12AA empowers the CIT to call for such documents or information from the trust/institution as he thinks necessary in order to satisfy himself about the genuineness of the activities of the trust/institution and for that he has to make such inquiries as he may think necessary. We noted that the Assessee, before the CIT, as is apparent from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not contain any certificate of registration. Even the name and address of the office bearers are not in existence. If the identity of the trust/institution cannot be established, the genuineness of the activities of such trust/institution, in our opinion, cannot be established. The Assessee claims that it is created for charitable purposes i.e. advancement of any other objects of general public utility. We noted that in view of the proviso to Sec. 2(15), which was inserted w.e.f. 1.4.2009, the Assessee cannot be said to have been engaged in charitable purposes if the Assessee is involved in carrying on any activity in the nature of trade, commerce or business or any activity of running any service in relation to any trade, commerce or bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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