1999 (8) TMI 137

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....he main object of giving medical and educational aid to the poor and needy sections of the society. It owns a building which is very old and this building is given on hire on various occasions at nominal rent. The building being very old needs regular maintenance and repairs and major portion of the income is from rent which is used for this purpose, thereby leaving a meager surplus every year. In spite of such meager surplus, the Trust carriers on its charitable activities by offering the building free of charge on various occasions such as blood donation camps, medical check-ups, gathering and meetings for study purposes etc. The objects of the trust are certainly charitable and this fact is not doubted by the Assessing Officer. The asses....

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....tice in Form No. 10 should be given in view of section 11(2). It was contended that there was no legal requirement of spending the income of the trust. It was further pointed out that the Assessing Officer had no reason to refer to assessment years 1984-85 to 1989-90 which where beyond the jurisdiction because in those years, exemption under section 11 was already allowed after proper scrutiny. It was also submitted before the CIT(A) that by letting out its Karyalaya the assessee-trust was not carrying on any business activity because the assessee does not carry on business of arranging marriage functions, providing catering service, providing musical amusement, refreshment etc. It merely lets out its premises, utensils and furniture and ea....

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....re us. 4. Shri C.M. Bhake, the learned D.R. submitted that the activities of letting out Mangal Karyalaya and deriving income therefrom was regular business activities and the excess of income over the expenditure is assessable as 'profit and gains of business or profession' and accordingly, the CIT (A) erred in holding that no business activities were carried on by the assessee. Shri K.A. Sathe, the learned counsel for the assessee strongly supported the order of the learned CIT(A). 5. We have considered the rival submissions and perused the facts on record. Ever since it was established in the year 1925, the trust has been letting its Mangal Karyalaya and utensils for providing functions besides doing other charitable acts like prov....