2018 (4) TMI 2033

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....6. It was formed as per the direction of the Ministry of Finance, Department of Economic Affairs Stock Exchange division of Central Government, vide notification no.F.No.14/4/SE/85 dated 22-08-1985. The assessee was granted registration by Charity Commissioner under Bombay Public Trust Act, 1950. It was also granted registration u/s 12A of the Act by the CIT, vide Registration no.TR.25443 dated 05-12-1986. 3. The assessee has been claiming exemption u/s. 11 of the Act over the years. In between, it claimed exemption u/s. 10(23EA) of the Act for assessment years 2001-02 to 2007-08. Subsequent to the amendment brought by Finance Act, 2006 w.e.f. 01-04-2007, the exemption u/s 10(23EA) is being claimed only in respect of income derived by wa....

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....e exchange. The trust was dissolvable on dissolution of the Stock Exchange and the proceeds of the assessee was not to be given to any other trust but would be shared with the Stock Exchange. Thus, the nature of the fund is moe of a business facilitator of the Stock Exchange and non-charitable in nature. It has been held judicially that where the primary objective of a trust is non-charitable, the trust would lose exemption even if the ancillary objectives are charitable in nature. The exemption under section 11 was claimed to circumvent the express provisions of the legislation. 3. The assessee was having interest and other income of Rs. 29,96,69,167/- which has been claimed exempted under section 11 of the Income Tax Act The exem....

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....essment order of the year under consideration. 8. We are unable to understand the rationale of the ld CIT. The registration u/s 12A of the Act has already been granted to the assessee holding that the assessee as a Charitable trust. At the time of granting registration, the objects of the trust and the genuineness of activities would have been examined by the Ld CIT. Once the registration u/s 12A of the Act has been granted, the role of the assessing officer, who is subordinate to the CIT, is to examine the claim of exemption u/s 11 of the Act made by the assessee. When the Ld CIT has granted registration u/s 12A accepting that the objects of the assessee-trust is charitable in nature, how the assessing officer can be expected to questio....