TaxTMI 
TaxTMI 
2014 (4) TMI 519
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.... 2(15) of the Act which in fact is not applicable to the instant case. The facts necessary for disposal of the appeal are stated in brief. The assessee-trust was founded by virtue of a trust deed dated April 10, 1959 and upon filing an application seeking registration under section 12A of the Act in the prescribed form on June 29, 1973, the Commissioner of Income-tax, Mumbai City-IV, approved the trust as a charitable trust and granted registration under section 12A(a) of the Act. The trust deed was amended subsequently. As per the objects of the trust the main object was to promote, support, establish and conduct college or colleges, schools, institutions, etc. for advancement of education and give scholarships or other assistance to st....
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....he Director of Income-tax (Exemption) the activities carried on by the assessee are in the nature of trade, commerce, business, etc. The assessee objected to the show-cause notice and explained that the assessee was running the trust as per the main object, i.e., promotion of education and hence the showcause notice deserves to be withdrawn. The learned Director of Income-tax observed that the assessee received service charges of Rs. 12 lakhs from letting out the premises for running institute of management. Similarly, the assessee earned income of Rs. 15,02,182 on letting out of auditorium. Therefore, the assessee's objects are in the nature of advancement of "any other object of general public utility" which falls within the newly ....
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.... 3 of Circular No. 11 of 2008 ([2009] 308 ITR (St.) 5) issued by the Central Board of Direct Taxes. The learned Director of Income-tax, however, observed that the assessee is not running educational institutions on its own and it merely letting out the building and substantial rent is received from letting out the buildingeither for running colleges or by letting out the auditorium-and hence the main object is to exploit the property for commercial use. By placing reliance upon the decision of the apex court in the case of Shambhu Investment P. Ltd. v. CIT [2003] 263 ITR 143 (SC), the learned Director of Income-tax observed that if the main intention is to exploit the immovable property by way of complex commercial activity it has to be ....
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....d the provisos thereto gets attracted only when the primary object is "advancement of any other object of general public utility". By placing reliance upon the following case law, learned counsel submitted that withdrawal of registration under section 12AA(3) is not in accordance with law : (i) DIT (Exemptions) v. Mool Chand Khairati Ram Trust [2011] 339 ITR 622 (Delhi) ; (ii) Oxford Academy for Career Development v. Chief CIT [2009] 315 ITR 382 (All) ; (iii) Bombay Presidency Golf Club Ltd. v. DIT(E)-Mumbai Tribunal (I.T.A. No. 319/Mum/2012) ; (iv) Khimji Bhagwandas Charity Trust v. DIT(E)-Mumbai Tribunal dated April 27, 2011 (I. T. A. No. 949/Mum/2009) ; (v) Management Consultants Association of India (now known as the Inst....