2010 (5) TMI 548

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....object of the trust is to promote commerce, art and science for serving the unserved people through facility management service. The assessee trust filed its application for registration under section 12A of the IT Act on 26-9-2009. 3. The DIT(E) after examining the activities of the assessee trust held that the trust works as agent for banks and receives remuneration for the services rendered. The said activity of the assessee trust according to DIT(E) is hit by of the proviso to section 2(15) of the IT Act and for this reason denied the benefit of registration under section 12A of the Income-tax Act. 4. Aggrieved by the order of DIT(E), the assessee is in appeal before us. The learned AR of the assessee trust submitted that the DIT(....

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....the advancement of any other object of general public utility : Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity." 6. The newly inserted proviso to section 2(15) will not apply in respect of the first three limbs of section 2(15), i.e., relief of the poor, education or medical relief. Consequently, where the purpose of a trust or institution is relief of t....