TaxTMI 
TaxTMI 
2019 (7) TMI 671
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....Tribunal) for the assessment year 2012-13. 2. The assessee filed this appeal by raising the following substantial questions of law : "1. Whether the Appellate Tribunal is correct in law in denying the tax exemption under Section 11 of the Act for the assessment year under consideration despite the continued availability of registration under Section 12A(a) of the Act for the appellant as a public charitable trust? 2. Whether the Appellate Tribunal is correct in law in denying the tax exemption under Section 11 of the Act for the assessment year under consideration on the misconstruction of the Provisos below Section 2(15) of the Act while recording perverse findings of fact on the activity pursued as a trading activity ? 3. Whether t....
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....019 in TCA.Nos.705 to 707 of 2018 read as follows : "10. It was also necessary to consider the fact of Circular No.11 of 2008 dated 19.12.2008, issued by the CBDT and the operative portion of which are as follows: '3.1. There are industry and trade associations who claim exemption from tax u/s 11 on the ground that their objects are for charitable purpose as these are covered under 'any other object of general public utility'. Under the principle of mutuality, if trading takes place between persons who are associated together and contribute to a common fund for the financing of some venture or object and in this respect have no dealings or relations with any outside body, then any surplus returned to the persons forming such associa....
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....ase also the earlier decision of the Tribunal dated 25.03.2013 has been referred to. We have pointed out these orders only for the purpose that in those cases the objectives of the concerned assessee were analysed by the Tribunal. However, we find such exercise was not done in the instant case, which was required to be done. We also make it clear that we have not expressed any opinion on the merits of the matter but, what we are concerned is that, an exercise should be done to examine the contention advanced by the assessee. More particularly, the contention which were raised in this appeal and the decisions which were cited at the bar. 14. One more aspect, which weighed in our minds is the show cause notices issued by the Director ....
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.... of trade, commerce or business or rendering any service in relation to any trade, commerce, or business in entirety from the definition of "charitable purpose", but it outlined the above referred activities from the ambit of the definition of "charitable purpose" only if it is carried out for a cess or fee or any other consideration. j.) In our Association's case, from the wattle extract distribution activity some surpluses are arising due to the following reasons: i.) At the time of clearing the consignment of wattle extract from foreign countries, the exact cost per ton could not be ascertained because of interest rate and uncertainty in the period of repayment of loan availed from the bank for importing the raw materials and flu....
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....proceedings u/s.12AA(3).' 15. The learned counsel appearing for the appellant/assessee submitted that on receipt of the aforementioned reply the proceeding proposing to cancel the said registration under Section 12AA was dropped and till date the assessee is enjoying such registration. However, Mr.J.Narayanaswami, learned Senior Standing Counsel, does not have any instructions in that regard but would submit that in any event, the facts of the case is only relevant factor to be gone into. 16. In the light of the above, we are of the opinion that the matter requires reconsideration by the Tribunal by examining the factual matrix in greater depth. For the above reason, this appeal is allowed. The order passed by the Tribunal is set as....