TaxTMI 
TaxTMI 
TaxTMI 
2017 (1) TMI 446
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....ted 26.3.2014 to disallow the claim with retrospective effect is unjustified and bad at law. 2. That in facts and circumstances of the case, withdrawal of exemption after expiry of two years of the accounting period is unwarranted and uncalled for. 3. That in facts and circumstances of the case, the ITO and CIT(A) has not brought on record any new fresh finding for not accepting the exemption u/s. 11 of the I.T. Act. 4. That in facts and circumstances of the case, the addition of Rs. 6,34,440/- is unfair and erroneous. 5. That in facts and circumstances of the case, the society be granted exemption u/s. 11 of the I.T. Act. 6. The due relief in law may please be granted and returned income may please be accepted. 7. That in fact and ci....
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....IT(A), who vide his impugned order dated 24.2.2016 has dismissed the appeal of the assessee by observing that there is a material change in the situation since the passing of the appeal order in AY 2009-10 by his predecessor which has subsequently being affirmed by the ITAT vide its order dated 29.10.2014. This material difference is that the CIT, Dehradun vide her order dated 26.3.2013 has withdrawn the registration granted to the assessee u/s. 12AA of the I.T. Act, 1961. While withdrawing the registration, the CIT has recorded a finding that the assessee is operating like a commercial tour operator and there is no element of charitable activity involved in the assessee activities. Accordingly, since the registration u/s. 12AA issued vide ....
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....s prima facie time barred by 12 days. In this behalf the assessee has filed the Application dated 23.5.2016 for condonation of delay which is placed on record. I have perused the Application for condonation of delay and of the view that the reasons mentioned in the application for condonation of delay is quite genuine, hence, the delay is condoned. On merits, I find that addition of Rs. 6,01,755/- is confirmed by the Ld. CIT(A) solely on the basis of withdrawal of registration u/s. 12AA vide order dated 8.10.2008 passed by the CIT, Dehradun, as a result the assessee cannot be granted the benefits of exemption u/s. 11 of the I.T. Act and addition in dispute was confirmed. However, on going through the copy of the order of the Tribunal dated ....
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.... the assessee is engaged in the activity of organizing tours to religious and historical places in India for senior citizens. The society is purely religious and works for the charitable purposes. He further observed that if the society would have been carrying on the business activity for the motive of profit then it would have conducted a tour not to the religious place but to the places of fun and enjoyment not the religious temples but to the club and pubs, not in a second class third sleeper but luxury AC coaches would have been hired and instead of giving the knowledge of incredible India it would have given the lectures regarding dances and beaches. We find that it is a settled law when the registration was granted u/s. 12AA on the b....
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.... tour operator. However, in August, 2008 when the journey was organized out of 294 people who undertook the journey, 243 people paid and the remaining 51 were taken free of cost. Hence, there is no profit motive. 7.4. We further find that second objection of the Ld. CIT was relating to charging of fee from the passengers of Tirth Yatra's However, on receiving of a token amount of Rs. 1000/- any person from general public can enroll for the Yatra. The said person becomes a temporary member of the society for the period of the Yatra. The total money charged from the individuals for the yatra is Rs. 21,500/- for a period of 31 days, which comes to less that Rs. 700/- daily. This includes provision of train tickets, bus hire, lodging charges, ....