TMI Blog2013 (9) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the assessee under section 12A of the Act after invoking the provisions of section 12AA(3) r/w proviso to section 2(15). 2. The facts, as narrated by the assessee before us, are that the assessee Navi Mumbai Sports Association, is a public charitable trust registered under the Bombay Public Trust Act with the following main objections: To provide facilities for indoor and outdoor games, swimming pool and recreation activities; To provide facilities for physical activities, organize cultural programs, organize training camps for youngsters with a view to serve the national interest and will also provide necessary facilities and to utilize the funds to the maximum for developing the sports and other similar facili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice as food service was at subsidized rates for its members and sports person and it is receiving income by way of royalty from the restaurant rendering such services. Independently, it is not running any kind of activities which are in the nature of trade or commerce or business. 4. The learned DIT, after referring to the newly inserted proviso to section 2(15), w.e.f. 1st April 2009, observed that, if any institution or trust, carries out any activities which is in the nature of trade, commerce or business for a cess for if or any other consideration, then it cannot be held that it is carrying out any charitable activities. In the assessee s case, there are clear cut earning showing that the income is also generated by way of roy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sports. Besides this, the assessee has also been providing training and coaching classes in various fields of sports at nominal fees. For running such activities, the assessee has to maintain infrastructure like restaurant for food service, conference hall and lodging rooms for the members who are sports persons. All these infrastructures are part and parcel of sports complex, without which sports complex cannot be run. The assessee is in no manner carrying out any independent activities of trade and commerce as given in proviso to section 2(15) as all these activities are only incidental to running of sports complex and also for maintaining its infrastructure in pursuance of its objects. He also made detail submission as to why the said pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions, perused the relevant findings of the learned DIT and the material available in record. The assessee has been granted registration under section 12A looking to its main objects, which are mainly for providing facilities for indoor and outdoor games and for various physical activities and organizing training camps in the field of sports. For this purpose, it has put up a sports complex consisting of various infrastructures for running various kinds of sports activities. Such a sports complex also consisted of infrastructures including like restaurant, hall and lodging rooms. From these infrastructures, the assessee has received royalty income which has been adversely viewed by the learned DIT on the ground that they are in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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