2020 (8) TMI 675

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....CIT(E) has erred in exceeding the jurisdiction bestowed upon the Ld. CIT(E) in as much as the Ld. CIT(E) has sought details of sources of income of the Trust whereas the Ld. CIT(E) is to merely look into the application of such income. 2. On the facts and in the circumstances of the case the Ld. CIT(E) has erred in holding that the activities business oriented in nature and thereby refusing to grant registration u/s.12AA . 3. On the facts and in the circumstances of the case the Ld. CIT(E) has failed to appreciate that the Trust is providing platform to the Indian artists and indigenous artists and reviving Indian Art and Culture and is charitable within the meaning of 'charitable purposes' as defined in sec. 2(15) of the Income....

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.....12AA of the Act of the assessee Trust/ Institution as per reasons appearing in his order. 5. The contentions of the Ld. AR of the assessee before us is that at the time of granting registration u/s.12AA of the Act, the jurisdiction of the Ld. CIT(Exemption) demands to examine the charitable nature of the objects of the assessee Trust/Institution and also to examine the genuineness of the activities conducted by the assessee Trust/Institution. In this case, the Ld. CIT(Exemption) had taken role of a Assessing Officer while rejecting the application for registration u/s.12AA of the Act. 6. Per contra, the Ld. DR placing reliance on the order of the Ld. CIT(Exemption) submitted that the assessee Trust has not provided any details of the act....

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....nt of advertisement expenses, catering expenses, mandap decoration and lighting expenses, performance fees, artist fees, inauguration expenses, generator rent expenses etc. There found to be huge fluctuation in these expenses viz. the expenditure on generator rent during F.Y.2018-19 was at Rs. 25,000/- as against Rs. 11,74,244/- during F.Y.2016-17 and similarly, the performance fees during F.Y.2016-17 was at Rs. 1.08 crores whereas the same was at Rs. 45.80 lacs during F.Y.2017-18. Further, the applicant has not furnished any reason for such a fluctuation. However, the overall nature of the entire activity carried out by the applicant was thus, found to be in the nature of a business of event management. The applicant was getting huge incom....