TaxTMI 
TaxTMI 
2018 (11) TMI 1891
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....er the Societies Registration Act, 1860 vide order dated 23.9.1971. Assessee has also registered u/s 12AA(1) of the Income-tax Act, 1961 ("the Act") on 12.2.1997. The assessee is running a charitable hospital at Vasant Kunj, New Delhi in the name of Flt. Lt. Rajan Dhall Charitable Trust, which provides medical relief to the general public. 3. Assessee filed their return of income on 23.9.2011 declaring nil income but the assessment was completed by an order dated 12.2.2014 at Rs. 12,84,20,473/- by making certain additions while disallowing the claim of the assessee for exemption u/s 11(1) of the Act by treating the assesse's contract with the Fortis Hospital for running hospital as commercial activity. 4. Learned CIT(A) considered the ple....
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....the assessee society. She specifically brought to our attention para 7 (iii) of the assessment order which states that the assessee has entered into an agreement by which if the plan of share of surplus has not been fulfilled, assessee will be liable to pay entire money spent by OBPL including the amount paid to Vaitalik along with interest @ 12% p.a within 30 days of such breach of agreement to Fortis Pvt. Ltd. According to the learned AO, this clause has totally ended the basic charitable nature of the trust and made it in full control of the private company which is purely working on commercial lines and earning the major share of income of the charitable organization. Likewise, the assessee is earning rental income from erecting Airtel,....
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....014-15. Learned AR submitted that learned CIT(A) has rightly followed the rule of consistency and the appeal of the revenue is devoid of merits. He further submitted that the order of the Tribunal in M/s Devki Foundation, ITA No.1027/Del/2012 dated 31.3.2015 was set aside by the Hon'ble Delhi High Court and the matter is restored to the Tribunal for deciding afresh, and hence, such a decision cannot be a precedent. 8. We have gone through the record. Though the learned DR brought to our notice that vide para 7 of the assessment order, the learned AO enumerated certain activities to say that they are not charitable in nature but only commercial ones, it is not established before us that these are activities that are undertaken by the assess....