TMI Blog2022 (3) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... ear that the assessee actually pursued only the objects as classified in categories (a) to (c). viz., Medical Relief to the poor patients, Education to the deserving students and Relief to the needy sections of the society and hence shied away from taking up any of the objects in category (d), viz., advancement of any other object of general public utility. Once this is the position, it becomes explicitly clear that the proviso to section 2(15), which attracts only when objects of the category (d) above are pursued, did not trigger in the instant case. The sequitur is that the assessee is entitled to exemption. It is pertinent to mention that the AO did not dispute the fulfillment of any other requirements for claiming exemption u/s 11 of the Act. We, therefore, hold that the assessee is entitled to exemption. The impugned order is, therefore, set-aside. - Decided in favour of assessee. - ITA No. 907/PUN/2017 - - - Dated:- 7-3-2022 - SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER Assessee by : Shri Neelesh Khandelwal Revenue by : Shri Piyush Kumar Singh Yadav ORDER PER R. S. SYAL, VP : This appeal by the assessee arises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -79. He, however, confirmed the order of the AO on the denial of exemption on merits as discussed by the AO. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. We have heard the rival submissions and perused the relevant material on record. The aspect of non-registration of the assessee-trust as noted by the AO got resolved in favour of the assessee at the hands of the ld. CIT(A), which is not under challenge before the Tribunal. The denial of exemption by the AO on merits is based on the fact that the assessee was mainly pursuing objects of general public utility by getting engaged in letting out its building and halls and was hence hit by the proviso to section 2(15) of the Act. In order to appreciate the facts in correct perspective, it would be useful to refer to the relevant part of the provision of section 2(15) of the Act at the material time, which runs as under: - charitable purpose includes relief of the poor, education, medical relief, preservation of environment (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 ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s land, property or any movable or immovable assets. 5. to accumulate earn income by way of donations, gifts, grants, fees, loans other means. 6. to build buy halls on rent, accept halls etc as gift or donation for the assessee. 7. to let out on rent or lease its movable or immovable property, to sell off property that is not required. 8. to aid people institutions that are useful to the assessee. 9. to mortgage the movable immovable property for the purpose of taking loan. 10. to donate, gift, give loans to needy children for educational purposes. 11. to help orphans, handicapped, poor ailing widows, old people etc. 12. to organize financial help, loans etc. for people who wish to set up new industries, business etc. 13. to give financial aid to organizations having similar objects. 14. to buy furniture, vessels other movable property as per need to sell them when not required. 15. to do all such things as would aid the achievement of the assesses objects. 7. On going through the above objects, it can be seen that the object at Sl.No.10 pertains to Education, falling in the category (b) as discus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade to Ms. Darshna Rasik Chordia on 31-07-2009 through HDFC S.B. Account vide Cheque No.336111 against the entry appearing at page 27 of the Paper book. He took us through page 264 of the paper book, which is a copy of the application filed by Ms. Darshna Rasik Chordia addressed to the assessee requesting for the grant of scholarship, containing all the relevant details of her performance in previous classes and the need of scholarship for MCS (computer science) course. There is further elaboration of annual income of her father at ₹ 60,000/- and request for scholarship of ₹ 20,000/- in such application. This application is duly signed by Principal of the Educational institution where she wanted to pursue her MCS (computer science). It is accompanied by her mark-sheet in the earlier class of BCS. This application is counter-signed by father of Ms. Darshna Rasik Chordia, again stating his annual family income of ₹ 60,000/- along with the nature of his service/profession. On receipt of such application and after its examination by the assessee, an interview was held vide interview-call dated 25-07-2009, whose copy has been given at page 263 of the paper book, notify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , whose names and signatures have also been obtained that have been placed at page 246 onwards of the paper book. Payment of ₹ 35,475/- was made to M/s. Vinod Trading Company by means of Cheque No.493938/- dt. 15-10-2009. Similar is the position regarding other amounts spent by the assessee on charity, which is in the nature of relief to the poor. 12. On an overview of the copious details furnished by the assessee, it is more than clear that the assessee was genuinely pursuing activities in the nature of Medical help to the patients, Education expenses of the deserving students and Relief to the poor. 13. In order to ascertain as to which activities of the nature as given under (d) above, hit by the proviso to section 2(15), were pursued by the assessee, we proceeded to examine the Income and Expenditure Account of the assssee. Total of the Expenditure side for the year ending 31-03-2010 on page 2 of the Paper book in Income and Expenditure Account is ₹ 1.92 crore. Expenditure on Medical help of ₹ 50.54 lakh; Education help of ₹ 62.25 lakh; and Relief to the poor covered under the head Education and Charity expenses of ₹ 3.46 lakh, totals up to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant for consideration at the time of assessment is to see which of the objects, having charitable purpose, were actually carried out so as to decide the question of exemption. The above discussion makes it graphically clear that the assessee actually pursued only the objects as classified in categories (a) to (c). viz., Medical Relief to the poor patients, Education to the deserving students and Relief to the needy sections of the society and hence shied away from taking up any of the objects in category (d), viz., advancement of any other object of general public utility. Once this is the position, it becomes explicitly clear that the proviso to section 2(15), which attracts only when objects of the category (d) above are pursued, did not trigger in the instant case. The sequitur is that the assessee is entitled to exemption. It is pertinent to mention that the AO did not dispute the fulfillment of any other requirements for claiming exemption u/s 11 of the Act. We, therefore, hold that the assessee is entitled to exemption. The impugned order is, therefore, set-aside. 15. In the result, the appeal is allowed. Order pronounced in the Open Court on 07th March, 2022. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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