TaxTMI 
TaxTMI 
2022 (8) TMI 1085
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....rust') constituted under a Deed of Trust dated 27.08.1991. The deed has thirteen objects in clause 3 thereof and seven specific powers endowed upon trustees, in addition to general powers to carry out the objects of the trust, in clause 6 thereof. 3.The petitioner enjoys the benefit of certification under Section 12A of the Income Tax Act, 1961 (in short 'Act') and is the beneficiary of an exemption under Section 11 that it had been claiming over the years. While this is so, the Commissioner of Income Tax had initiated proceedings for revision of assessment in respect of assessment year (in short 'AY') 2010-2011. 4.The revision was initiated on the basis of an amendment to the provisions of Section 2(15) of the Act that defines the term 'charitable purpose' to the effect that charitable purposes would not include the advancement of 'any object of general public utility' if it involved the carrying on of any activity in the nature of trade, commerce or business. 5. Despite objections raised by the petitioner, an order of revision came to be passed adverse to it on 19.01.2015, that was challenged by the petitioner by way of an appeal before the Income Tax Appellate Tribunal ....
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....s.11 of the Act. This Tribunal is of the considered opinion that when the main object of the assessee is education and providing scholarship to the needy people, the assessee naturally needs money to feed the charitable activity and performing the objects of the trust. Therefore, the business can be held as property under the trust. However, the assessee is expected to maintain a separate books of account and the business of the assessee-trust shall be incidental to the main activity. 13.In the case before us, the CIT(E) has received petitions regarding tax evasion by the assessee. The assessee was receiving corpus donation in the guise of letting out the community hall to the poor people. This fact was disclosed in the return filed by the assessee itself under the Service Tax Act. Therefore, the question arises for consideration is whether the assessee is carrying out the charitable activity in accordance with the objects of the trust or not? It is also needs to be examined whether the assessee-trust, in fact, utilized the income from community hall for charitable activity or not. The Assessing Officer simply found that receipts of rent from community hall are incidental ....
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....titioner upon the above conclusions of the tribunal, particularly those observations to the effect that the proviso to Section 2(15) may not be applicable at all in its case, I am of the considered view that such observations of the Tribunal stem from its (mis)understanding that the running of the community halls and kalyana mandapams did not constitute an object as per the trust deed. 12. It is pertinent to note that the petitioner has not challenged the order of the Income Tax Appellate Tribunal, that has attained finality, but has merely proceeded to take the benefit of its findings/observations, on the notion that such observations are in its favour. As far as the Income Tax Department is concerned, the officer has been careful to note in the order of assessment that the Department has understood the order of the Tribunal as being one of remand simplicitor and it is only for this reason that an appeal was not filed challenging the same. To this extent and in light of the discussion in the preceding paragraphs, the interpretation of the respondents qua the effect of the order of the Tribunal is found to be in order. 13. Section 2(15), as it stands post amendment, with effe....
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....he Trust are education, medical relief and relief to the poor. 17. The critical issue continues to relate to the usage of funds by the petitioner as this would determine whether its activities are charitable or otherwise, This has then to be set and seen in the context of Section 2(15) of the Act. This exercise necessarily involves an appreciation of facts which this Court is not inclined to embark upon in terms of Article 226 of the Constitution of India. In any event, no legal infirmity is made out to warrant intervention in/with the impugned orders. Faced with this prospect, learned Senior Counsel for learned counsel on record, conveys that the petitioner wishes to withdraw the Writ Petitions, seeking liberty to file statutory appeals. 18.W.P.Nos.29471, 29476 and 30843 of 2019 challenge notices under Section 148 and orders disposing objections to assumption of jurisdiction. In light of final assessment orders dated 27.12.2019, the aforesaid three Writ Petitions are rendered infructuous and are dismissed as such. No costs. Connected Miscellaneous Petitions are closed. 19.Learned counsel for the petitioner seeks permission of this Court to withdraw WP.Nos.570, 571 574 of ....