2022 (5) TMI 1059

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....ised by the assessee read as under: 1. The order of the Commissioner of Incometax (Appeals) is contrary to law, facts and circumstances of the case. 2. The CIT (Appeals) has erred in concluding that receipt from a community hall is commercial in nature. 3. The CIT(Appeals) ought to have appreciated that the primary purpose was to conduct cultural programmes and use for various research discussion. This kind of cultural activities is envisaged in the objects of the trust for which this exclusively facility is created, 4.The CIT(Appeals) ought to have appreciated that since the Community hall could not be used all the time for conducting cultural programmes some revenue was sought to be generated, with which the expenses of maintai....

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....l submissions and after due consideration of orders of lower authorities, our adjudication would be as under. 3. The assessee being registered trust u/s 12A enjoys exemption u/s 11 & 12 as applicable to a charitable trust. The assessee is registered since November, 2000. During this year, the assessee's total receipts were Rs.1827.92 Lacs. During assessment proceedings, it was noted by Ld. AO that the main objective of the trust was to run education institution, render financial assistance to students, help poor and destitute persons, rendering useful services in the field of community health etc. The assessee was running a Kalyanam Mandapam by the name M/s Abirami Chidambaram community hall at Kottupuram. The assessee submitted that commu....

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.... by using the hall for music concerts and dance performances. It could also be seen that as against total receipts of Rs.1827.92 Lacs, the rental receipts are merely Rs.72.93 Lacs which is merely 4% of total receipts. The majority of rent received by the assessee include rental from marriage functions and rent earned from other events like cultural, spiritual and educational seminars etc. It is nowhere the findings that the assessee has not adhered to the conditions as applicable to a charitable trust or any of the objects of the assessee are profit-motive. Under these circumstances, it could not be concluded that the assessee carried out separate commercial activities and it was hit by the proviso to Sec. 2(15). The decision of this Tribun....