2016 (9) TMI 1272

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....r the Bombay Public Trusts Act, 1950. It has also been registered with the Director of Income Tax (Exemption), Mumbai [hereinafter referred to as the "DIT(E)"] u/s.12A of the Act on 16.03.1974. The activity of the Trust was to provide swimming pool facilities for aquatic events and training facilities for other sports like squash, billiards and table tennis etc. The said activities were carried out for the period w.e.f. 1972-73. The plot was leased out by the Government of Maharashtra for promoting the said object. Earlier to the present order dated 03.02.2016, the Trust was found eligible for claim of exemption u/s.11 of the Act in different years mentioned in para 3 of the application. On 02.02.2012 the respondent issued a notice for the ....

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....ell as order of the Tribunal. Through this Miscellaneous Application assessee has requested to the Bench to recall it's order dated 03.02.2016 or passed such order as may be think. However, no mistake much less an apparent mistake was pointed out in the Miscellaneous Application. Under provisions of section 254(2) of the Act, Tribunal is empowered to rectify apparent mistake and not to review its own order or to reach at a different conclusion. After going through the Miscellaneous Application, it appears that learned AR wanted to change the conclusion already drawn by the Tribunal which is not permitted u/s.254(2) of the Act. The bone contention of the applicant is that the exemption u/s.12A of the Act could not be cancelled merely because....

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....tion u/s.12A of the Act could be cancelled specifically in two circumstances such as when the activity of the trust / institution was not being carried out in accordance with the objects of the trust and activity of the trust/ institution was not found to be genuine. The DIT(E) has also specified this fact that the activity of the trust was no in accordance with its object. Here the concerned para at page 5 of the DIT(E) is hereby reproduced below: "With regard to the income shown by the assessee club from social activities like social functions, library, pavilion hall, board room, open terrace, etc. the Hon'ble ITAT in the assessee club's own case for A.Y.2003-04 had held that these activities cannot be said to be for the object of the cl....

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....self becomes non genuine for the purpose of Section 11 of the I.T.Act, as it looses its public charitable status and accordingly the provision of Section 12AA(3) of the Act gets attracted. As discussed in earlier paragraph that Hon'ble ITAT in assessee's own case has held that some of the activities as carried out by the assessee cannot be said to be for the object of club. Hence the activities are not in accordance with the objects sought to be pursued by the Institution. Thus in view of the facts and circumstances as discussed above, I therefore, accordingly hold that the assessee trust has become non genuine for the purpose u/s.12AA(3) read with section 11 of the I.T.Act, as for allowing exemption the Trust / Institution should be for ch....