TaxTMI 
TaxTMI 
2016 (4) TMI 1233
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....nder section 12AA of the Act. 2. The assessee in its appeal has raised several grounds, however, the crux of the issue is as follows:- i) The learned Commissioner of Income Tax has erred in cancelling the registration granted to the assessee under section 12AA of the Act. ii) The learned Commissioner of Income Tax has erred in rejecting the application of the assessee society for renewal under section 80G of the Act. 3. Brief facts of the case are that the assessee is a society registered under section 12A(a) of the Act and exemption under section 80G was granted to the assessee upto 31.03.2008. The assessee society filed an application before the CIT for renewal of exemption under section 80G of the Act. On examinin....
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....the hearing before the undersigned, the assessee society has not produced the same to dispute the contention raised by the Department. e) In para 2.5 of the show cause notice, it was clearly mentioned that activities carried out by the society are only generating surplus out of running a school, hostel, etc for being utilized towards charity which has not been done at all any of the two financial years. The inference is evident from the fact that no expenditure towards any charitable activity as per the trust deed has been debited to the Profit and Loss Account or Income and Expenditure Account. Therefore, the basic question i.e "where is charity?" has remained unanswered in the three financial years. In the absence of any charitab....
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.... of the Department that there is no charity in this society and huge surplus is being made in these commercial activities. g) While giving reply, the society has relied on the decision of Chennai Bench in the case of St Mary Christian Charitable Trust 11 ITR(Tribunal) 205 Chennai, Fernandes Hospital Educational foundation 51 DTR 381 and H.P. Environment Protection Board 28 DTR 289. These cases law filed by and relied on by the assessee were perused. The undersigned is of the considered view that facts and circumstances in these cases are completely different and distinguishable and hence these case laws are not applicable to the facts of this case. In all these cases the Hon'ble ITAT has upheld the "contention of charity" of th....
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....the most the income of the society can only be taxed, if it violates the provisions of the Act. Hence, it was pleaded that the order of the learned Commissioner of Income Tax may be set aside. 7. The learned Departmental Representative on the other hand argued in support of the orders of the learned Commissioner of Income Tax by reiterating his findings. 8. We have heard the rival submissions and carefully perused the materials available on record. On examining the objects of the assessee society, it is obvious that the society exists for charitable purposes. The objects of the society are reproduced herein below for reference:- a) To perform works of charity for those in need irrespective of caste, race, community or creed. ....
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....ndulgencing in any non charitable activities or religious activities, however conducts itself predominantly in charitable activities then the exemption granted under section 12A(a) of the Act cannot be withdrawn, but only the amount spent outside the scope of the objects of the society can be taxed. On perusing the paper book filed by the assessee and examining the receipts & payment account enclosed therein, we find that the assessee trust is conducting multi various activities which appears to be charitable. However, in the interest of justice, we remit the matter back to the file of the learned Commissioner of Income Tax to examining the paper book filed before us by the assessee and to verify the activities conducted by the assessee and....