GHATKOPAR JOLLY GYMKHANA, MUMBAI v. DIT (E), MUMBAI

ITA 882/MUM/2012 | 2009-2010
Pronouncement Date: 23-10-2013 | Result: Allowed

Appeal Details

RSA Number 88219914 RSA 2012
Assessee PAN AAATG0404A
Bench Mumbai
Appeal Number ITA 882/MUM/2012
Duration Of Justice 1 year(s) 8 month(s) 14 day(s)
Appellant GHATKOPAR JOLLY GYMKHANA, MUMBAI
Respondent DIT (E), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 23-10-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 23-10-2013
Date Of Final Hearing 30-09-2013
Next Hearing Date 30-09-2013
Assessment Year 2009-2010
Appeal Filed On 09-02-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH MUMBAI BEFORE SHRI D. KARUNAKARA RAO ACCOUNTANT MEMBER AND SHRI SANJAY GARG JUDICIAL MEMBER ITA NO.882/MUM/2012 (ASSESSMENT YEAR:2009-10) GHATKOPAR JOLLY GYMKHANA KIROL ROAD GHATKOPAR MUMBAI-400 086. VS. DIRECTOR OF INCOME TAX(E) PIRAMAL CHAMBERS 6 TH FLR. LALBAUG MUMBAI- 400 012. (APPELLANT) (RESPONDENT) P.A. NUMBER : AAATG 0404 A ASSESSEE BY : S HRI A.H. DALAL REVENUE BY : SHRI SANTOSH KUMAR DATE OF HEARING : 31/09/2013 DATE OF PRONOUNCEMENT : 23/10/2013 O R D E R PER SANJAY GARG JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER DATED 14.12.2011 OF THE DIRECTOR OF INCOME TA X (EXEMP.) MUMBAI U/S. 12AA(3) OF THE INCOME TAX ACT CANCELLING THE R EGISTRATION GRANTED TO THE ASSESSEE U/S. 12A OF THE ACT. 2. THE ASSESSEE IS A CLUB WHICH HAS BEEN GRANTED RE GISTRATION U/S. 12A OF THE ACT AS A CHARITABLE TRUST WITH THE FOLLO WING PRINCIPLE AIMS AND OBJECTS:- 1. TO ENCOURAGE AND PROMPT SPORTS PASTIMES AND ATHLET ICS. 2. TO EQUIP AND MAINTAIN GYMNASIUMS FOR PHYSICAL WELFA RE AND ATHLETICS ITA NO.882/M/12 A.Y.09-10 2 3. TO PROMPT SOCIAL CONTACT AMONGST ITS MEMBER 4. TO RAISE THE STANDARD AND TO FURTHER THE CAUSE THE PHYSICAL EDUCATION BY AFFORDING FACILITIES FOR TRAINING ON S OUND AND SCIENTIFIC LINES 5. TO ORGANIZE EDUCATIVE PROPAGANDA FOR PHYSICAL EDUCA TION 6. TO COLLECT AND GIVE INFORMATION ON MATTERS RELATING TO PHYSICAL EDUCATION 7. TO PROMPT THE PHYSICAL MORAL SOCIAL AND CULTURAL WELFARE AND TO PROVIDE HEALTHFUL RECREATION BY EXECUTION OF OUTDOO R AND INDOOR GAMES. 2.1 THE ASSESSEE WAS REGISTERED AS A CHARITABLE TRU ST THE ABOVE BEING ITS OBJECTS FALLING IN THE CATEGORY OF ADVANCEMEN T OF ANY OTHER OBJECTS OF GENERAL PUBLIC UTILITY AS PER DEFINITION OF CHARIT ABLE PURPOSE GIVEN U/S. 2(15) OF THE INCOME TAX ACT. THE DIT(E) NOTICED TH AT THE ASSESSEE WAS CARRYING OUT ACTIVITIES IN THE NATURE OF TRADE COM MERCE OR BUSINESS ETC. AND GROSS RECEIPTS THERE FROM WERE IN EXCESS OF RS. 10.00 LACS. SO BY TAKING RESORT TO THE NEWLY ADDED PROVISO W.E.F. 01. 04.2009 TO SECTION 2(15) OF THE INCOME TAX ACT HE CANCELLED THE REGIST RATION OF ASSESSEE. THE ASSESSEE IS THUS IN APPEAL BEFORE US. 3. BEFORE US THE LD. AUTHORIZED REPRESENTATIVE HAS SUBMITTED THAT REGISTRATION ONCE GRANTED TO THE ASSESSEE BEING A C HARITABLE INSTITUTION CAN NOT BE CANCELLED OR TAKEN AWAY BECAUSE OF THE N EWLY INSERTED PROVISO TO SECTION 2(15) OF THE INCOME TAX ACT WHICH DEFINE S CHARITABLE PURPOSE. ON THE OTHER HAND THE LD. DR HAS SUBMITTED THAT THE REGISTRATION OF THE ASSESSEE HAS RIGHTLY BEEN CANCELED BY THE DIT(E). T O BE MORE CLEAR AND FOR THE SAKE OF CONVENIENCE SECTION 2(15) OF THE IN COME TAX ACT IS REPRODUCED BELOW HEREIN: CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR EDUCATION MEDICAL RELIEF PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTEREST AND THE A DVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY: ITA NO.882/M/12 A.Y.09-10 3 PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE I F IT INVOLVES THE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE COMMERCE OR BUSINESS FOR A CESS OR FEE OR ANY OTHER CONSIDERATION IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION OR RETENTION OF THE INCOME FROM SUCH ACTIVITY. PROVIDED FURTHER THAT THE FIRST PROVISO SHALL NOT A PPLY IF THE AGGREGATE VALUE OF THE RECEIPTS FROM THE ACTIVITIES REFERRED TO THEREIN IS TEN LAC RUPEES OR LESS IN THE PREVIOUS Y EAR 3.1 A PERUSAL OF THE ABOVE REPRODUCED SECTION 2(15) OF THE ACT REVEALS THAT APART FROM CHARITABLE ACTIVITIES LIKE RELIEF T O THE POOR EDUCATION MEDICAL RELIEF ETC. IF THE ACTIVITIES OF A TRUST AR E FOR ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY THE SAME WIL L BE INCLUDED IN THE DEFINITION OF CHARITABLE PURPOSES. HOWEVER THE FIR ST PROVISO TO THE SAID SECTION PROVIDES THAT IF THE TRUST/INSTITUTION CARR IES OUT ANY ACTIVITY IN THE NATURE OF ANY TRADE COMMERCE OR BUSINESS FOR A CESS OR IF FOR ANY OTHER CONSIDERATION IRRESPECTIVE OF THE NATURE OF U SE OR APPLICATION OF SUCH MONEY RETAINED FROM SUCH ACTIVITY WILL NOT BE AN ACTIVITY FOR ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY AS SUCH WILL BE EXCLUDED FROM THE DEFINITION OF CHARITABLE PURPOSES . HOWEVER VIDE NEWLY INSERTED PROVISO W.E.F. 01.04.2009 THE RIGOUR OF TH E FIRST PROVISO HAS BEEN DILUTED. AS PER THE SAID PROVISO THE FIRST PROVISO SHALL NOT APPLY IF THE AGGREGATE VALUE OF THE RECEIPTS FROM THE ACTIVITIES AS MENTIONED IN THE FIRST PROVISO IS RS.10.00 LACS OR LESS IN THE PREVI OUS YEAR. THE LD. DIT(E) WHILE CANCELLING THE REGISTRATION OF THE ASSESSEE OBSERVED THAT THE ASSESSEE RECEIVED HUGE AMOUNTS ON ACCOUNT OF ROYALT Y FROM DECORATORS AMOUNTING TO RS.7 26 013/- RS.21 60 000/- FROM CAT ERERS. RS.7 65 000/- FROM RESTAURANTS AND ALSO EARNED VEN UES AND GROUND HIRING CHARGES AMOUNTING TO RS.75 55 528/- AND FEE FROM VARIOUS GAMES AMOUNTING TO RS.53 03 311/- WHICH WERE IN THE NATUR E OF BUSINESS INCOME AND SINCE TOTAL RECEIPTS WERE IN EXCESS OF T HE LIMIT PRESCRIBED ITA NO.882/M/12 A.Y.09-10 4 UNDER SECOND PROVISO TO SECTION 2(15) WHICH HAS COM E INTO EFFECT FROM ASSESSMENT YEAR 2009-10 HENCE HE CANCELLED THE RE GISTRATION FROM THE SAID ASSESSMENT YEAR. HE FURTHER OBSERVED THAT SIN CE THE ACTIVITIES OF THE ASSESSEE DID NOT FALL WITHIN THE DEFINITION OF CHAR ITABLE PURPOSE AS PROVIDED U/S. 2(15) OF THE ACT HENCE THE TRUST IT SELF BECOMES NON GENUINE AND AS SUCH THE PROVISIONS OF SECTION 12AA( 3) GETS ATTRACTED. HE ACCORDINGLY CANCELLED THE REGISTRATION W.E.F ASSESS MENT YEAR 2009-10 AND DECLARED TRUST AS NON-CHARITABLE TRUST. 4. THE LD. AUTHORIZED REPRESENTATIVE BEFORE US HAS RELIED UPON VARIOUS AUTHORITIES GIVEN BY CO-ORDINATE BENCHES OF THE TRIBUNAL TO STRESS HIS POINT : I. ITAT DECISION IN THE CASE OF GUJARAT INDUSTRIAL DEV ELOPMENT CORPORATION VS. CIT IN ITA NO.175/AHD/2011 ORDER DT . 13.01.2012 FOR ASSESSMENT YEAR 2009-10 ; II. ITAT DECISION IN THE CASE OF THE BOMBAY PRESIDENCY GOLF CLUB LTD. VS. DIT(EX.) IN ITA NO.319/AHD./2012 ORDER DATED 30 .05.2012 FOR ASSESSMENT YEAR 2009-10; III. ITAT DECISION IN THE CASE OF DIT(E) AHD. VS. SHRI N .H. KAPADIA EDUCATION TRUST IN ITA NO.1321 & 1420(AHD.) ORDER D ATED 03/02/2012 FOR ASSESSMENT YEAR 2008-09; IV. IN THE CASE OF CHATURVEDI HAR PRASAD EDUCATIONAL SO CIETY VS. CIT (45 SOT 108)(LUCK) (URO) ; V. (IN THE CASE OF RAJASTHAN HOUSING BOARD VS. CIT JA IPUR (51 SOT 383)(JP) AND VI. IN THE CASE OF GANDHA SINGH EDUCATION TRUST VS. CIT (138 TTJ 1(CHD) (UO). 4.1 HOWEVER FURTHER CONTENTION HAS BEEN RAISED THA T EVENTHOUGH THE TOTAL RECEIPTS OF THE ASSESSEE DURING THE PREVIOUS YEAR HAS CROSSED THE LIMIT PRESCRIBED UNDER THE SECOND PROVISO TO SECTIO N 2(15) STILL AT THE MOST THE ASSESSEE TRUST BE TREATED AS NON CHARITABL E FOR THAT SPECIFIC YEAR AND BENEFITS OF A CHARITABLE TRUST WILL NOT BE AVAI LABLE TO THE ASSESSEE FOR THAT RELEVANT YEAR BUT THE REGISTRATION OF THE ASSE SSEE A CHARITABLE TRUST UNDER THE ACT CAN NOT BE CANCELLED. ITA NO.882/M/12 A.Y.09-10 5 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD. RE PRESENTATIVE OF THE PARTIES. IT MAY BE OBSERVED THAT THE FIRST PROV ISO TO SECTION 2(15) IS A VERY RIGOROUS PROVISION WHICH EXCLUDES THE INSTITUT ION OR TRUST FROM THE DEFINITION OF CHARITABLE TRUST IF SUCH TRUST CARRI ES ACTIVITIES IN THE NATURE OF TRADE COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE COMMERCE OR BUSINESS FOR A CESS OR FEE OR ANY OTHER CONSIDERATION IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION OR RETENTION OF THE INCOME FROM SUCH ACTIVITY. SO BEF ORE THE INSERTION OF THE SECOND PROVISO FROM 01.04.2009 THE DEFINITION OF C HARITABLE PURPOSE WHEN READ WITH FIRST PROVISO WAS VERY RESTRICTIVE. HOWEVER BY THE INSERTION OF THE SECOND PROVISO W.E.F. 01.04.2009 T HE RIGOUR OF THE FIRST PROVISO HAS BEEN DILUTED AND THE FIRST PROVISO HAS NOT BEEN MADE APPLICABLE EVEN IF THE TRUST CARRIES ON BUSINESS A CTIVITIES AND THE GROSS RECEIPTS FROM SUCH ACTIVITIES IS RS.10.00 LACS OR L ESS THAN RS.10.00 LACS IN THE PREVIOUS YEAR. HENCE FROM 01.04.2009 THE CA RRYING OUT OF THE ACTIVITIES OF TRADE COMMERCE OR BUSINESS EVEN BY C HARITABLE TRUST IS NOT BARRED SO AS TO EXCLUDE ITS ACTIVITIES FROM THE DEF INITION OF CHARITABLE PURPOSES. HOWEVER A LIMITATION HAS BEEN IMPOSED TO THE EFFECT THAT THE GROSS RECEIPTS FROM SUCH ACTIVITIES SHOULD NOT INCR EASE RS.10.00 LACS. THE DIT(E) HAS CANCELLED THE REGISTRATION ON THE GROUND THAT THE TOTAL RECEIPTS OF THE ASSESSEE TRUST HAS EXCEEDED RS.10.00 LACS DU RING THE PREVIOUS YEAR. HE HAS FURTHER HELD THAT ONCE A TRUST LOSES I TS IDENTITY OR CHARACTER OF CHARITABLE TRUST IT BECOMES A NON-GENUINE CHARI TABLE TRUST. HENCE THE PROVISIONS OF SECTION 12AA(3) GETS ATTRACTED. SECTI ON 12AA FOR THE SAKE OF CONVENIENCE IS REPRODUCED AS UNDER :- 12AA. (1) THE 9 [***] COMMISSIONER ON RECEIPT OF AN APPLICATION F OR REGISTRATION OF A TRUST OR INSTITUTION MADE UNDER C LAUSE (A) 7 [OR CLAUSE (AA) OF SUB-SECTION (1)] OF SECTION 12A SHALL (A) CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRUST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATI SFY HIMSELF ABOUT ITA NO.882/M/12 A.Y.09-10 6 THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTI TUTION AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY IN THI S BEHALF; AND (B) AFTER SATISFYING HIMSELF ABOUT THE OBJECTS O F THE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES HE (I) SHALL PASS AN ORDER IN WRITING REGISTERING THE TRUST OR INSTITUTION; (II) SHALL IF HE IS NOT SO SATISFIED PASS AN ORDER IN WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION AND A COPY OF SUCH ORDER SHALL BE SENT TO THE AP PLICANT : PROVIDED THAT NO ORDER UNDER SUB-CLAUSE (II) SHALL BE PASSE D UNLESS THE APPLICANT HAS BEEN GIVEN A REASONABLE OPPORTUNI TY OF BEING HEARD. 10 [(1A) ALL APPLICATIONS PENDING BEFORE THE CHIEF C OMMISSIONER ON WHICH NO ORDER HAS BEEN PASSED UNDER CLAUSE (B) OF SUB-SECTION (1) ........... (2) .......... [(3) WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANT ED REGISTRATION UNDER CLAUSE (B) OF SUB-SECTION (1) AND SUBSEQUENTL Y THE COMMISSIONER IS SATISFIED THAT THE ACTIVITIES OF SU CH TRUST OR INSTITUTION ARE NOT GENUINE OR ARE NOT BEING CARRIE D OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTION AS TH E CASE MAY BE HE SHALL PASS AN ORDER IN WRITING CANCELLING THE REGIS TRATION OF SUCH TRUST OR INSTITUTION: PROVIDED THAT NO ORDER UNDER THIS SUB-SECTION SHALL BE PASSE D UNLESS SUCH TRUST OR INSTITUTION HAS BEEN GIVEN A R EASONABLE OPPORTUNITY OF BEING HEARD.] 5.1 ON PERUSAL OF THE ABOVE REPRODUCED SECTION IT R EVEALS THAT THE REGISTRATION GRANTED U/S. 12A OF THE ACT CAN BE CAN CELLED IF THE COMMISSIONER IS SATISFIED THAT THE ACTIVITIES OF SU CH TRUST ARE NOT GENUINE OR THE SAME ARE NOT CARRIED OUT IN ACCORDANCE WITH OBJECTS OF THE TRUST. THERE IS NO CASE OF THE REVENUE THAT THE TRUST HAS NOT BEEN CARRYING OUT ACTIVITIES IN ACCORDANCE WITH ITS OBJECTS. THOUGH THE CONTENTION OF THE LD. AUTHORIZED REPRESENTATIVE HAS BEEN THAT EVEN IN CAS E OF THE TOTAL RECEIPTS FROM ROYALTY RENTAL INCOME ETC. HAVE EXCEEDED THE LIMIT OF RS.10.00 LACS STILL IT CAN NOT BE SAID THAT THE SAID TRUST HAS B ECOME NON-GENUINE. ON THE OTHER HAND THE CONTENTION OF THE REVENUE IS THA T ONCE THE ACTIVITIES OF ITA NO.882/M/12 A.Y.09-10 7 THE TRUST DO NOT FALL WITHIN THE DEFINITION OF CHAR ITABLE PURPOSE IT BECOMES A NON-GENUINE CHARITABLE TRUST. THE ACTIVITIES OF T HE TRUST IN SUCH AN EVENT WILL BE NON-GENUINE CHARITABLE ACTIVITIES. 5.2 WE MAY OBSERVE THAT THE TAX EXEMPTION OR BENEFI TS ARE GRANTED TO A TRUST OR INSTITUTION BECAUSE ITS ACTIVITIES FALL WI THIN THE DEFINITION OF CHARITABLE PURPOSES AS DEFINED U/S. 2(15) OF THE AC T. UNDER SECTION 12AA(3) THE REGISTRATION OF SUCH TRUST/INSTITUTION CAN BE CANCELLED IF ITS ACTIVITIES HAVE BECOME NON GENUINE OR IT IS NOT CAR RYING OUT ACTIVITIES AS PER OBJECTS OF THE INSTITUTION. ONCE THE ACTIVITIES OF A REGISTERED CHARITABLE INSTITUTION CEASE TO BE CHARITABLE OR DO NOT FALL W ITHIN THE PURVIEW OF DEFINITION OF CHARITABLE PURPOSE AS PER THE RELEV ANT PROVISIONS/DEFINITIONS GIVEN UNDER THE ACT THEN S UCH INSTITUTION WOULD NOT BE ENTITLED TO TAX EXEMPTION OR BENEFITS GRANTE D UNDER THE ACT. EVEN DESPITE THE FACT THAT SUCH AN INSTITUTION OTHERWIS E IS CARRYING OUT CHARITABLE ACTIVITIES. 5.3 NOW THE QUESTION BEFORE US IS AS TO WHETHER TH E REGISTRATION OF THE ASSESSEE AS A CHARITABLE INSTITUTION IS LIABLE TO B E CANCELLED BECAUSE OF THE REASON THAT THE TOTAL RECEIPTS EXCEEDED THE LIM IT OF RS.10.00 LACS AS PROVIDED UNDER THE SECOND PROVISO TO SECTION 2(15) OF THE ACT. IN OUR VIEW THE WORD PREVIOUS YEAR MENTIONED IN THE SECOND PR OVISO TO SECTION 2(15) IS MORE RELEVANT. IT HAS NOT BEEN MENTIONED THAT TH E FIRST PROVISO WHICH AS OBSERVED IS A RIGOROUS PROVISO WILL NOT APPLY I F THE TOTAL RECEIPTS FROM THE CHARITABLE ACTIVITIES EXCEEDS THE LIMIT OF RS.1 0.00 LACS DURING ANY YEAR RATHER THE WORD IS PREVIOUS YEAR . THAT ME ANS THE BENEFITS WILL NOT BE AVAILABLE TO THE ASSESSEE FOR THE ASSESSMENT YEAR IN WHICH THE GROSS RECEIPTS OF INCOME EXCEEDS THE LIMIT OF RS.10 .00 LACS HOWEVER THAT DOES NOT MEAN THAT SUCH BENEFITS WILL NOT BE AVAILA BLE TO THE INSTITUTION FOR ALL OTHER ASSESSMENT YEARS DURING WHICH ITS REC EIPTS DOES NOT CROSS THE LIMIT OF RS.10.00 LACS. THE WORD PREVIOUS YEAR MENTIONED IN THE ITA NO.882/M/12 A.Y.09-10 8 SECOND PROVISO MAKES IT LIBERAL TO GET AN INTERPRE TATION THAT IT IS NOT THE REGISTRATION OF THE INSTITUTION AS CHARITABLE INSTI TUTION WHICH IS AFFECTED RATHER IT IS THE ELIGIBILITY OF THE SAID INSTITUTI ON TO GET TAX EXEMPTION/ BENEFITS WHICH IS AFFECTED THAT TOO FOR THE RELEVAN T YEAR DURING WHICH THE GROSS RECEIPTS OF THE INSTITUTIONS CROSS THE LIMIT OF RS.10.00 LACS. THE INSERTION OF SECOND PROVISO HAS NOT MADE THE DEFINI TION RESTRICTIVE OR RIGOROUS RATHER WITH THE INSERTION OF SECOND PROVIS O TO SECTION 2(15) OF THE ACT THE RIGOUR OR RESTRICTIVE NATURE OF THE DE FINITION HAS BEEN DILUTED AND HAS BEEN MADE WIDE ENOUGH TO INCLUDE RELATED BU SINESS ACTIVITIES OF THE TRUST/INSTITUTION AS DESCRIBED THE FIRST PROV ISO TO SECTION 2(15) OF THE ACT ALSO WITHIN THE SCOPE OF DEFINITION OF CHARIT ABLE PURPOSES. THE LIMIT OF RECEIPT UPTO RS.10.00 LACS DURING THE PREVIOUS YEAR AS MENTIONED IN THE SECOND PROVISO HAS MADE THE SECTION FURTHER LI BERAL MANDATING TO OBSERVE THE CHARITABLE CHARACTER OF THE CONCERNED TRUST/ INSTITUTION FROM YEAR TO YEAR BASIS. FOR THE PREVIOUS YEAR DURING W HICH THE GROSS RECEIPT INCOME CROSSES LIMIT OF RS.10.00 LACS THE TRUST WI LL NOT GET EXEMPTION OR BENEFIT OF ITS BEING CHARITABLE IN NATURE DESPITE I TS CARRYING OUT CHARITABLE ACTIVITIES. HOWEVER IT WILL GET SUCH BENEFIT IF IT IS REGISTERED AS CHARITABLE INSTITUTION AND INCOME FROM BUSINESS ACTIVITIES AS MENTIONED IN FIRST PROVISO TO SECTION 2(15) DOES NOT CROSS LIMIT OF R S.10.00 LACS. OUR VIEW IN THIS RESPECT IS FORTIFIED FROM THE JUDGMENT OF THE CO-ORDINATE BENCH DECISION OF THE TRIBUNAL IN THE CASE OF RAJASTHAN HOUSING BOARD VS. CIT (2012)21 TAXMANN.COM77(JP) . 5.4 THUS THE ACTION OF THE CIT(A) RELYING UPON THE NEWLY INSERTED PROVISO FROM 01.04.2009 IN CANCELLING THE REGISTRAT ION OF THE TRUST IN OUR VIEW IS NOT CORRECT OR JUSTIFIED. THE ONLY EFFECT WILL BE THAT THE ASSESSEE WILL NOT BE ENTITLED FOR EXEMPTION OR TAX BENEFITS WHICH OTHERWISE WOULD HAVE BEEN AVAILABLE TO IT BEING REGISTERED AS CHARI TABLE INSTITUTION FOR THE RELEVANT YEAR DURING WHICH ITS INCOME HAS CROSSED T HE LIMIT OF RS.10.00 LACS. SUBJECT TO OUR ABOVE OBSERVATIONS CANCELLATIO N OF REGISTRATION ITA NO.882/M/12 A.Y.09-10 9 GRANTED TO ASSESSEE U/S. 12A IS HEREBY SET ASIDE AN D SAME IS HEREBY ORDERED TO BE RESTORED. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD OCTOBER 2013. SD/- SD/- (D. KARUNAKARA RAO ) ACCOUNTANT MEMBER (SANJAY GARG ) JUDICIAL MEMBER MUMBAI DATED: 23/10/2013. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.