TMI Blog2021 (12) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... n, unless established by the revenue department to be an independent business transaction, will also be considered as charitable only and not business. Further it was also held that, where the main and dominant activity of the assesse trust in that case was to spread message of Sai baba, then brining out publications and sale thereof by the assesse trust to its devotees at cost price did not amount to business. The (5) member constitutional bench of Hon ble Supreme Court of India in the case of PANKAJAKSHI VERSUS CHANDRIKA [ 2016 (2) TMI 1063 - SUPREME COURT ] has held that general things do not derogate from special things. The Apex Court of India in a catena of case law has held that the statute laying down general scheme of operation has to make room for a special statute for which a separate and exclusive field is carved out by the legislature itself. Therefore the special entry 13 will prevail while determining the eligibility for exemption for services supplied by a person registered under Sec 12AA of the Income Tax Act. Thus, a. Renting of rooms where charges from ₹ 1000/- or more per day are taxable. b. Renting of shops for business where charges are & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per room is less than one thousand per day, if answer to the question 1 is yes? (i) Category-I, Premium 2 BHK 568.30 Sq Ft including facilities such as water, electricity, cot, bed, pillow, bedspread, Two Air Conditioned rooms, hall, kitchen, Two: toilets (One attached) With cooking facility and No cleaning services (Not charged given free of cost to the organizing members) (ii) Category-II, Semi Premium 2 BHK 437.70 Sq Ft. including facilities such as water, electricity, cot, bed, pillow, bedspread, Two Air Conditioned rooms, hall kitchen, One toilets and one bathroom. With cooking facility and No cleaning services. (Not charged given free of cost to the organizing members) (iii) Category-III, 2 BHK 437.70 Sq. Ft. including facilities such as water, electricity, cot, bed pillow, bedspread. Two rooms (One Air Conditioned room and another non air conditioned room), hall, kitchen, One toilets and one bathroom with cooking facility and No cleaning services (iv) Category-IV, 1 BHK Cottage 232.80 Sq. Ft including facilities such as water, electricity, cot, bed, pillow, bedspread, one Air Conditioned Bed rooms, hall, kitchen, rest room + toilet. With cooking facility and No c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r consideration and similarly they are also renting space for stalls for consideration. The understanding of the applicant is based on the pronouncement of Hon ble Apex Court of India in the case of Commissioner of sales tax Vs Sai publication fund (2002) Appeal (civil) 9445 of 1996 [2002] 126 STC 288 (SC) wherein it was held that, where the main activity is not business, then any incidental or ancillary transaction, unless established by the revenue department to be an independent business transaction, will also be considered as charitable only and not business. Further it was also held that, where the main and dominant activity of the assesse trust in that case was to spread message of Sai baba, then brining out publications and sale thereof by the assesse trust to its devotees at cost price did not amount to business. The Hon ble Apex Court of India in that case has examined the facts in light of definition of dealer enumerated in Sec 2(11) and definition of business as given in Section 2(5A) of Bombay Sales Tax Act, 1959. The Hon ble Apex court concluded that as it is evident from Sec 2(11), every person is not dealer but only those persons who carry on business by buyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (23BBA) of section 10 of the said Income-tax Act: Provided that nothing contained in entry (b) of this exemption shall apply to,- (i) renting of rooms where charges are one thousand rupees or more per day; (ii) renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ten thousand rupees or more per day; (iii) renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month. Thus there are (2) Entries in the exemption notification 12/2017 pertaining to persons registered under Sec 12AA of the Income Tax Act. Whereas the Entry 1 is a general entry, the Entry 13 is a special entry covering renting of premises, rooms, shops etc., by a person registered under Sec 12AA of Income Tax Act. The (5) member constitutional bench of Hon ble Supreme Court of India in the case of Pankajakshi Vs Chandrika (2016) 6 SCC 157 has held that general things do not derogate from special things. The Apex Court of India in a catena of case law has held that the statute laying down general scheme of operation has to make room for a special statute for which a separate and exclusive field ..... X X X X Extracts X X X X X X X X Extracts X X X X
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