2018 (8) TMI 518

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....d in the circumstances of the case, the preparation of food and making available the same by the assesee sub contractor to the contractor is a charitable activity entitling registration under section 12AA of the Income Tax Act? (2) Whether, on the facts and in the circumstances of the case where the assessee trust obtained a contract for supply of midday meals from another trust, the assessee is entitled to registration under Sec.12AA of the Income Tax Act and is not the cancellation of registration under Sec.12AA (3) in accordance with law? (3) Whether on the facts and in the circumstances of the case, is not the Commissioner of Income Tax right in law in cancelling registration under Section 12AA (3) of the Income Tax Act?" 2. The....

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....work is also involved in other States and not in the State of Kerala. The assessee contended that such State Governments identify charitable institutions for the purpose of implementing Welfare Schemes. Admittedly, the State Government spends the money for the Scheme of distribution of food to various schools. The assessee is said to have carried out the work on such entrustment made by another charitable institution, one M/s.Naandi Foundation. The amounts paid by M/s.Naandi Foundation to the assessee were also subjected to tax deduction at source. The assessee also submitted before the Tribunal that in certain projects, there would be surplus which would be set off against the deficit in other projects. The assessee does not carry on imple....

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.... is there a claim of contributions, donations and endowments having been received from the Public, Government Bodies or Institutions. The specific case of the assessee is that it implements welfare schemes of other State Governments, with the funds supplied by the State Governments through another Trust, as per a contract awarded for the implementation. 6. Definitely, there cannot be any requirement that charitable activities should be from self generated funds because charitable institutions relies on donations, endowments and other contributions from philanthropic people and institutions to carry out such work. However, when a particular institution, as in the above case, is involved in implementation of welfare schemes of the Government....

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....enting agency of the State Governments, on funds earmarked and disbursed by the State Government. There is no charity in implementation of welfare schemes of the Government, with the funds of the State. Charity of the right hand, it is said, shall not be disclosed to the left hand. Here, the welfare measure of the State implemented with State funds is claimed as charity by the implementing agency, who receives consideration for such implementation. 8. The Commissioner, initially, had granted registration clearly specifying the exemption to be available only on the satisfaction of the AO. The instant proceedings were on the report of the AO that the objects of the Trust are deviated from. We do not find a mere change of opinion, and the Com....