Lotus Charitable Trust, Kolkata V. DIT(Exemptions), Kolkata

ITA 398/KOL/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4718 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 18-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 13-03-2012
• Court: TRIBUNAL
• Department Lawyers: RAJAT SUBHRA BISWAS
• Assessee Lawyers: D S DAMLE
• Keywords: Revision of order; Charitable institution; Earning of tax free income; Cancellation of registration
• Section: 143(3); 80G; 12A; 12AA; 263; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA [BEFORE SHRI N. V. VASUDEVAN, JM & SHRI M. BALAGAN ESH, AM] I.T.A NO.398/KOL/2012 ASSESSMENT YEAR: 2009-10 LOTUS CHARITABLE TRUST VS. DIRECTOR OF INCOME-T AX (EXEMPTION) (PAN: AAATL3593R) KOLKATA. ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 18.05.2016 DATE OF PRONOUNCEMENT: 08.06.2016 FOR THE APPELLANT: SHRI D. S. DAMLE, FCA FOR THE RESPONDENT: SHRI RAJAT SUBHRA BISWAS, CI T, DR ORDER PER SHRI M BALAGANESH, AM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF DIT(E), KOLKATA VIDE M. NO. DIT(E)/KOL/12AA(3)/2011-12/3072-74 DATED 16.01.2012 , WITHDRAWING THE REGISTRATION GRANTED U/S 12AA(3) OF THE INCOME TAX ACT, 1961 (HE REINAFTER REFERRED TO AS THE ACT). 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE LEARNED DIT(EXEMPTIONS) IS JUSTIFIED IN CANCELLING THE REGI STRATION GRANTED TO THE ASSESSEE TRUST BY INVOKING THE PROVISIONS OF SECTION 12AA(3) OF TH E ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSE SSEE IS A PUBLIC CHARITABLE TRUST CREATED ON 22.8.1980 DULY REGISTERED WITH INCOME TA X DEPARTMENT AND CERTIFICATE OF REGISTRATION U/S 12A OF THE ACT WAS GRANTED TO THE ASSESSEE WITH EFFECT FROM 25.9.1980 AND APPROVAL U/S 80G WAS GRANTED TO THE ASSESSEE FR OM TIME TO TIME AND LAST OF SUCH APPROVAL WAS GRANTED VIDE PROCEEDINGS DATED 20.5.20 11 IN PERPETUITY. THE MAIN OBJECTS FOR WHICH THE ASSESSEE TRUST WAS CREATED ARE AS FOL LOWS:- (I) TO ASSIST, FINANCE, SUPPORT, FOUND ESTABLISH A ND MAINTAIN ANY TRUST, SOCIETY OR INSTITUTION MEANT FOR THE RELIEF OF THE POOR, ADVAN CEMENT OF EDUCATION, MEDICAL RELIEF OR ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY. (II) TO OPEN , FOUND, ESTABLISH OR FINANCE, ASSIST AND CONTRIBUTE TO THE MAINTENANCE OF HOSPITALS AND/OR INSTITUTIONS FOR PROMOTION OF RESE ARCH AND EDUCATION IN MEDICAL SCIENCE INCLUDING SURGERY. 2 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 (III) TO OPEN, FOUND, ESTABLISH, MAINTAIN AND ASSIS T LEPER ASYLUMS OR OTHER INSTITUTIONS FOR THE TREATMENT OF LEPROSY. (IV) TO OPEN, FOUND, ESTABLISHED ASSIST AND MAINTAI N SCHOOLS, COLLEGES AND BOARDING HOUSES. V) TO OPEN, FOUND, ESTABLISH AND ASSIST SCHOOLS, C OLLEGES HOSTELS FOR THE BLIND, THE DEAF AND THE DUMB. VI) TO OPEN, FOUND, ESTABLISH OR CONTRIBUTE TO THE MAINTENANCE OF ORPHANAGES, WIDOW HOMES, LUNATIC, ASYLUMS, POOR HOUSES ETC. VII) TO DISTRIBUTE DHOTIS, BLANKETS, RUGS, WOOLEN C LOTHING, QUILTS OR COTTON, WOOLEN, SILKEN OR OTHER VARIATIONS OF CLOTHINGS IN THE POOR. VIII) TO PAY STIPENDS, SCHOLARSHIPS AND OTHER AID F OR PROSECUTING STUDIES, TRAINING OR RESEARCH. IX) TO ESTABLISH FOUND AND MAINTAIN LIBRARIES, READ ING ROOMS FOR THE CONVENIENCE OF THE PUBLIC. X) TO START MAINTAIN AND ASSIST IN RELIEF MEASURES IN THESE AREAS WHICH ARE OR BECOME SUBJECTED TO NATURAL CALAMITIES SUCH AS FEMINE, EPI DEMICS, FIRM, FLOOR, DEATH OF WATER, EARTHQUAKE. XI) TO RENOVATE OR REPAIR ANY SUCH TEMPLE, MOSQUE, GURDWARA, CHURCH OR OTHER PLACE WHICH IS NOTIFIED BY THE CENTRAL GOVERNMENT IN THE OFFICI AL GAZETTE TO BE OF HISTORIC, ARCHEOLOGICAL OR ARTISTIC IMPORTANCE OR TO BE A PLACE OF PUBLIC W ORSHIP OR KNOWN THROUGHOUT ANY STATE OR STATES. 4. THE ASSESSEE RUNS A DIABETIC CENTRE UNDER THE NAME OF SUNNY PARK DIABETIC ENDOCRINE CENTRE. THIS IS CLAIMED TO BE A PART OF THE PARENT TRUST (I.E LOTUS CHARITABLE TRUST) AND BOOKS OF ACCOUNTS MAINTAINED SEPARATELY FOR THE SAME. THE ASSESSEE FALLS UNDER THE SECOND LIMB OF THE DEFINITION OF CHARITAB LE PURPOSE U/S 2(15) OF THE ACT I.E MEDICAL RELIEF. THE ASSESSEE IN FURTHERANCE OF I TS CHARITABLE OBJECTS OF GRANTING MEDICAL RELIEF, CHOSE TO START A PRANIC HEALING CENTRE . T HE ASSESSEE ALSO STARTED A AC FITNESS CENTRE UNDER THE NAME AND STYLE OF SOLACE. THE A SSESSEE CLAIMED THAT THE PRANIC HEALING IS NOTHING BUT AN ALTERNATIVE MEDICAL THERA PY TREATMENT GIVEN TO THE PATIENTS. SIMILARLY RUNNING OF A AC FITNESS CENTRE WAS MEANT ONLY TO SUPPLEMENT THE MEDICAL RELIEF ACTIVITIES CARRIED OUT BY THE ASSESSEE. T HE LEARNED AR STATED THAT THE ASSESSEE COLLECTED MEMBERSHIP FEES FROM ASST YEAR 2002-03 ON WARDS FROM MEMBERS / PATIENTS WHO PREFER TO UNDERGO FITNESS THERAPY AND PRANIC HE ALING TREATMENT TO CURE THEIR DIABETES AND ILLNESS. ACCORDINGLY, IT CLAIMED THAT THE INCOM ES DERIVED FROM THOSE ACTIVITIES WOULD ALSO ENJOY EXEMPTION U/S 11 OF THE ACT. THE ASSESS EE TRUST HAS BEEN ACCEPTED AS A PUBLIC CHARITABLE TRUST BY THE DEPARTMENT AND EXEMPTION U/ S 11 OF THE ACT HAS BEEN GRANTED ALL 3 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 ALONG. THE LEARNED AR PLACED ON RECORD A COPY OF THE ASSESSMENT ORDER FOR THE ASST YEAR 2004-05 FRAMED U/S 143(3) OF THE ACT ON 29.12. 2006 (PAGES 14 TO 15 OF PAPER BOOK) WHICH WAS FRAMED SUBSEQUENT TO THE COMMENCEME NT OF SOLACE. IN THE SAID ASSESSMENT, THE LEARNED AO AFTER EXAMINING THE BOOK S OF ACCOUNTS OF THE ASSESSEE FROM ASST YEARS 1999-2000 TO 2004-05 ACCEPTED THE ACTIVI TIES CARRIED OUT BY THE ASSESSEE AS CHARITABLE IN NATURE AND GRANTED EXEMPTION U/S 11 O F THE ACT. 5. THE LEARNED DIT STATED THAT ON PERUSAL OF THE INCOME AND EXPENDITURE ACCOUNT, A SUM OF RS 77.90 LACS WAS REALIZED FROM MEMBERSHIP FEES ALONE OUT OF THE GROSS RECEIPTS OF RS. 130.35 LACS. HENCE IT IS QUITE AP PARENT THAT THE MAJOR SOURCE OF INCOME FOR THE TRUST IS DERIVED FROM RUNNING THE CENTRE FO R PHYSICAL FITNESS NAMED SOLACE. HE HELD THAT SOLACE PROVIDES A MULTI-FACILITY HEALTH UNIT WHICH IS NOT RESTRICTED TO PRANIC HEALING ALONE. THE TERM MEDICAL RELIEF IN COMMON P ARLANCE MEANS PROVISION OF FACILITY FOR DIAGNOSIS OF AILMENTS THROUGH MODERN SCIENTIFIC METHODS AND TREATMENT OF DISEASES THROUGH MEDICATION OR SURGERY FOR ACHIEVING RECOVER Y AND CURE. HENCE MEDICAL RELIEF CANNOT BE STRETCHED TO INCLUDE PROVISION OF FACILIT IES FOR MAINTAINING OR PROMOTING GENERAL FITNESS. HE FURTHER OBSERVED THAT THE ACT IVITIES OF THE TRUST DO NOT BENEFIT THE PUBLIC AT LARGE. HE NOTED THAT A PERUSAL OF THE ME MBERSHIP PROFILE WOULD INDICATE THAT IT IS AFFORDABLE TO ONLY WELL TO DO SECTIONS OF THE SO CIETY. HENCE HE CONCLUDED THAT SOLACE IS NOTHING BUT A HEALTH CLUB AND DOES NO T FALL UNDER MEDICAL RELIEF WITHIN THE MEANING OF SECTION 2(15) OF THE ACT. HE FURTHER O BSERVED THAT AT MOST THE ACTIVITIES OF THE ASSESSEE IN PROMOTING PRANIC HEALING AND GENERA L FITNESS CAN BE REGARDED AS AN OBJECT OF GENERAL PUBLIC UTILITY AND CONSEQUENTLY HIT BY T HE PROVISO TO SECTION 2(15) AS THE GROSS RECEIPT EXCEED RS 25 LACS THEREON. ACCORDINGLY HE CONCLUDED THAT THE ACTIVITIES OF THE TRUST CANNOT BE REGARDED ANY LONGER AS BEING FOR CH ARITABLE PURPOSE. HENCE HE PROCEEDED TO HOLD THAT THE ACTIVITIES OF THE TRUST ARE NOT GE NUINE AND INVOKED THE POWERS VESTED IN HIM U/S 12AA(3) OF THE ACT AND CANCELLED THE REGIST RATION U/S 12AA OF THE ACT. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US ON T HE FOLLOWING GROUNDS:- 1) FOR THAT THE ORDER OF THE LD. DIRECTOR OF INCO ME TAX (EXEMPTION) PASSED U/S 12AA(3) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') CANCELLING THE REGISTRATION GRANTED U/S 12AA IS DISPUTED, ARBITRARY AND BAD IN LAW. 2) A)FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMP TION) ERRED IN REJECTING REGISTRATION GRANTED U/S 12AA ON THE CONTENTION THAT ACTIVITIES OF THE TRUST HAVE TO BE REGARDED AS 4 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 BEING IN THE NATURE OF COMMERCE AND HIT BY THE AMEN DED PROVISION OF SECTION 2(15) OF THE ACT. B) FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTI ON) ERRED IN HOLDING THAT THE ACTIVITIES OF THE TRUST/ INSTITUTION ARE NOT GENUIN E AND DO NOT CONFORM TO THE OBJECTIVE OUTLINED IN THE TRUST DEED. C) FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTI ON) FURTHER ERRED IN HOLDING THAT THE ACTIVITIES OF THE TRUST CANNOT BE CATEGORIZED UNDER THE LIMB OF 'MEDICAL RELIEF' WITHIN THE MEANING OF THE PROVISION OF SECTION 2(15) OF THE AC T. 3) FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTI ON) ERRED IN HOLDING THAT TERM MEDICAL RELIEF IN COMMON PARLANCE, MEANS ONLY PROVI SION OF FACILITY FOR DIAGNOSIS OF AILMENTS THROUGH MODERN SCIENTIFIC METHODS AND TREA TMENT OF DISEASES THROUGH MEDICATION OR SURGERY FOR ACHIEVING RECOVERY AND CU RE AND THE TERM 'MEDICAL RELIEF CANNOT BE STRETCHED TO INCLUDE PROVISION OF FACILIT IES FOR MAINTAINING OR PROMOTING PHYSICAL/MEDICAL FITNESS. A) FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTI ON) ERRED IN HOLDING THAT THE 'SOLACE' IS NOTHING BUT A HEALTH CLUB AND AFFORDABLE BY ONLY THE WELL-TO-DO SECTIONS OF THE SOCIETY. B) FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTI ON) FAILED TO APPRECIATE THE FACT THAT THE MAJOR PART OF THE GROSS INCOME OF THE TRUST NOT ONLY COMPRISES OF MEMBERSHIP FEES BUT ALSO FEES FROM PATIENTS AND REALIZATION FROM TREATM ENT, THERAPIES & OTHERS. 5) A) FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEM PTION) FAILED TO APPRECIATE THE FACT THAT THERE IS NO CHANGE IN THE ACTIVITIES OF THE TR UST AND IT HAS BEEN AVAILING BENEFIT OF SECTION 12AA OF THE INCOME TAX ACT, 1961 SINCE INCE PTION. B) FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTI ON) ALSO FAILED TO APPRECIATE THE FACT THAT THE TRUST HAS BEEN ALLOWED THE BENEFIT OF SECT ION 11 OF THE ACT IN ALL ITS COMPLETED TAX ASSESSMENTS TILL THE ASSESSMENT YEAR 2008-09. 6. THE LEARNED AR STATED THAT THE SHOW CAUSE NOTIC E ISSUED U/S 263 OF THE ACT IS AS BELOW:- OFFICE OF THE DIRECTOR OF INCOME TAX (EXEMPTION) 10B, MIDDLETON ROW, 6 TH FLOOR, KOLKATA-700 001 NO. DIT(E)/12AA/CANCELLATION/2011-12/2906 DATE 30 .12.2011/02.01.2012 TO THE TRUSTEE, LOTUS CHARITABLE TRUST 4, SUNNY PARK KOLKATA-700 019. SUBJECT : SHOW CAUSE NOTICE FOR CANCELLATION OF RE GISTRATION U/S. 12AA(3) OF THE I. TAX ACT, 1961 REGAR DING. SIR, 5 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 I AM DIRECTED TO STATE THAT YOU ARE INTER ALIA, OP ERATING A SPA AND A CLUB. THE ACTIVITIES IN WHICH YOU ARE ENGAGED IN IS IN THE NATURE OF TRADE, COMME RCE OR BUSINESS WITHIN THE MEANING OF 1 ST PROVISO TO SEC. 2(15) OF THE I. T. ACT. AS SUCH OBJECTS OF YO UR SOCIETY DO NOT QUALIFY AS BEING FOR CHARITABLE P URPOSE WITH EFFECT FROM 01.04.2009 IN VIEW OF THE AMENDMEN TS TO SEC. 2(15), BY THE FINANCE ACT 2009. IN VIEW OF THE DISCREPANCIES AND VIOLATION OF LAW NOTED ABOVE, THE DIRECTOR OF INCOME TAX (EXEMPTIONS), KOLKATA PROPOSES TO CANCEL THE REGIST RATION U/S. 12AA GRANTED TO YOU. YOU ARE HEREBY REQUIRED TO SHOW CAUSE AS TO WHY TH E REGISTRATION SHOULD NOT BE REVOKED. YOUR REPLY MUST REACH THIS OFFICE WITHIN 07 DAYS FROM TH E RECEIPT OF THIS COMMUNICATION. YOURS FAITHFULLY, SD/ (D. K. KEDIA) I.T.O. (EXEMPTIONS), HQRS., KOLKATA FOR DIRECTOR OF INCOME TAX (EXEMPTION), KOLKAT A THE LEARNED AR STATED THAT THE ASSESSEE DULY FILED REPLY TO THIS SHOW CAUSE NOTICE MEETING EACH AND EVERY ALLEGATION OF THE LEARNED DI T(E). HE ARGUED THAT THE TRUST IS PROVIDING MEDICAL RELIEF AND SERVICES OF MENTAL AND PHYSICAL FITNESS WHICH ARE INCIDENTAL TO THE MAIN OBJECTS OF THE TRUST OF IMPARTING MEDIC AL RELIEF AMONG OTHERS. HE ARGUED THAT THE ACTIVITIES OF THE TRUST ARE DIVIDED INTO MEDICAL RELIEF CENTRE AND HEALTH CENTRE KNOWN AS SUNNY PARK DIABETIC ENDOCRINE CEN TRE AND SOLACE RESPECTIVELY. IN SUNNY PARK DIABETIC ENDOCRINE CENTRE, THE TRUST IS TREATING PATIENTS BY PRANIC HEALING TECHNIQUES THAT UTILIZE PRANA I.E LIFE FORCE TO CURE VARIOUS ILLNESSES. THIS TECHNIQUE TREATS DISEASES IN A HOLISTIC WAY FACTORING IN THE ENTIRE HEALTH PROFILE OF A PATIENT. HE STATED THAT PRANIC HEALING HAS ACHIEVED TREMENDOUS PROGRESS IN TREATING VARIOUS DISEASES AND HELPED IN PREVENTING FURTHER DETERIORATION OF H EALTH. TO PERFORM THIS TECHNIQUE OF PRANIC HEALING THERE IS A REQUIREMENT OF PEACEFUL E NVIRONMENT FROM WHERE THE HEALERS CAN DO THEIR HEALING TO CURE THE PATIENTS. INITIALL Y WHEN THE TRUST STARTED THIS ACTIVITY, TREATMENT BASED ON PRANIC HEALING WAS NEITHER WELL ACCEPTED NOR SO WELL KNOWN. INITIALLY MANY PATIENTS WHO CAME TO THE CENTRE WERE ONE WHO H AD TRIED OUT OTHER SYSTEMS OF TREATMENT AND PRANIC HEALING WAS THEIR LAST HOPE. T HE TRUST IS TREATING PATIENTS WITHOUT ANY DISTINCTION OF CASTE AND CREED IN ITS CENTRE. T HE SUCCESS WAS ACHIEVED GRADUALLY AS THE TRUST EDUCATED MORE AND MORE PEOPLE ABOUT THE T ECHNIQUE OF PRANIC HEALING TO HEAL THE PAST TRAUMA AND DEPRESSION. RISING HEALTHCARE C OSTS HAVE ALSO PROMPTED PEOPLE TO TURN TOWARDS SUCH ALTERNATE SYSTEMS OF MEDICINE. PA TIENTS WHO BENEFITED FROM OUR SYSTEM OF MEDICINE ARE T HE BEST AMBASSADORS OF THE TECHNIQUE. THUS, THIS ACTIVITY OF THE TRUST IN NO CIRCUMSTANCES CAN BE EQUATED WITH ANY A CTIVITY OTHER THAN MEDICAL RELIEF. 6 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 HE FURTHER ARGUED THAT AS PER SECTION 2(15) OF THE ACT, RELIEF ALSO BY ALTERNATIVE METHOD IS PER SE CHARITABLE PURPOSE IRRESPECTIVE OF THE FACT THAT FOR PROVIDING RELIEF THE TRUST CHARGES FEE, AND THERE IS NO CONDITION TO HOL D THAT TO BECOME ELIGIBLE FOR CHARITABLE PURPOSE IN RESPECT OF MEDICAL RELIEF, THE SAME SHOU LD BE IMPARTED FREELY OR WITHOUT CHARGING ANY FEE. MERE MAKING OF PROFIT WOULD NOT B E GROUND TO CANCEL REGISTRATION ONCE THE OBJECTS OF THE TRUST WERE FOR CHARITABLE PURPOS E AND ESPECIALLY WHERE TWO INSTITUTIONS WERE BEING RUN BY THE TRUST WHICH WAS REGISTERED SI NCE 22.08.1980 AS A CHARITABLE TRUST, AND SOLELY BECAUSE THE TRUST WAS CHARGING FEES AND WAS GETTING SURPLUS, WOULD NOT BE A REASON TO DENY REGISTRATION. THE UNIT 'SOLACE' HAVE VARIETY OF MEMBERS (OLD AND YOUNG, MEN AND WOMEN, RURAL AND METROPOLITAN, CORPORATE AND NON-CORPORATE , PUBLIC SERVANTS AND PRIVATE, PERMANENT AND TEMPORARY, SERVICE MEMBERSHIP OR OTHE RWISE). THE PERIOD OF MEMBERSHIP IS ALSO AS PER CHOICE OF THE INDIVIDUALS. IN FACT T HE CENTRE IS NOT MEAN FOR ANY INDIVIDUAL OR FOR A GROUP OF INDIVIDUALS OR FAMILIES AND SUCH VARIETY OF MEMBERS IS REPRESENTED FROM A CROSS-SECTION OF THE PUBLIC AT LARGE. THE ME MBER'S ADMISSION TO THE CENTRE IS NOT RESTRICTED AT ALL. FURTHER IT IS NEITHER NECESSARY THAT MEDICAL RELIEF, CLINICAL SERVICES AND/OR FITNESS SERVICES SHOULD ONLY BE GIVEN TO POO R, NOR IT CAN BE PRESUMED THAT UNLESS ANY PARTICULAR PERCENTAGE OF SERVICES ARE RENDERED FREE A CLINIC CENTRE WOULD NOT BECOME A CHARITABLE ONE. FURTHER SINCE THE UNIT HAVE A VAR IETY OF MEMBERS AND PERIOD OF MEMBERSHIP IS ALSO AS PER CHOICE TO AVAIL THE BENEF IT OF PHYSICAL FITNESS AND AWARENESS TO MAINTAIN GOOD HEALTH, THE TRUST IS OPERATING A CENT RE FOR THE SAME AND NOT OPERATING A SPA AND A CLUB. THE ACTIVITIES OF THE TRUST ARE NOT FOR THE PURPOSE OF ANY PROFIT THOUGH THE TRUST HAD INCOME FROM RENT AND INTEREST BESIDES MEMBERSHI P FEES, FEE FROM TREATMENT, THERAPIES & OTHERS, AND RECEIPT FROM PRANIK HEALING TREATMENT. SUCH RECEIPTS OR COLLECTION OF FEES IN THE COURSE OF ACTIVITIES OF T HE TRUST CANNOT BE VIEWED AS RECEIPTS IN CONSIDERATION OF RENDERING THE SERVICES TO TRADE, C OMMERCE OR BUSINESS AS THE SERVICES THAT ARE PROVIDED ARE AT A VERY SUBSIDIZED RATE WHE N COMPARED WITH THE RATES PREVAILING IN THE MARKET. THE RECEIPTS OF THE TRUST ARE NOT WI TH A PROFIT MOTIVE BUT ESSENTIALLY ONLY 7 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 TO RECOUP THE COST OF DISCHARGING SERVICES. THE SU RPLUS GENERATED IS UTILIZED FOR THE DEVELOPMENT AND PROMOTION OF THE TRUST. BY NO STRETCH OF LOGIC, THE ACTIVITIES OF THE TRUST CAN BE SAID TO BE NOT GENUINE. THE TRUST IS ADMITTEDLY PURSUING THE OBJECTS FOR WH ICH IT WAS ESTABLISHED WHEN THE TRUST IS ENGAGED IN BONA FIDE ACTIVITIES, WITH THE FRAME WORK OF LAW, TO PURSUE ITS OBJECTIVES, IT CANNOT BE SAID THAT THE ACTIVITIES OF THE TRUST ARE NOT GENUINE AND THERE IS NO LEGALLY SUSTAINABLE REASONS FOR CANCELLING OR WITHDRAWING R EGISTRATION GRANTED U/S. 12AA OF THE ACT. 7. IN RESPONSE TO THIS, THE LEARNED DR ARGUED THA T THE ASSESSEE TRUST WAS CARRYING OUT THE ACTIVITIES IN SOLACE WHICH IS NOTHING BUT A SPA OR HEALTH CLUB AND WAS CATERING ONLY TO THE AFFORDABLE SECTIONS OF THE SOCIETY AND DOES NOT BENEFIT THE GENERAL PUBLIC AT LARGE. IF THE ARGUMENT OF THE ASSESSEE THAT ACTIVI TY OF PRANIC HEALING TREATMENT FALLS UNDER THE WIDER AMBIT OF MEDICAL RELIEF , THEN EV EN THE DEPARTMENTAL STORES SELLING ORGANIC FOOD ITEMS ALSO WOULD BE BENEFICIAL TO THE HEALTH OF THE CONSUMERS AND THEY WOULD ALSO FALL UNDER THE AMBIT OF CHARITABLE PURPO SE WHICH IS THE NOT THE INTENTION OF THE LEGISLATURE. HE STATED THAT THE ACTIVITIES CARR IED OUT IN SOLACE IS PURELY COMMERCIAL IN NATURE AND IS NOT AT ALL AFFORDABLE TO THE POOR. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE FIND FROM THE AFORESAID FACTS THAT THE ASSESSEE TRUST HAS BEEN CARRYING ON THIS FITNESS CE NTRE FROM ASST YEAR 2002-03 ONWARDS AND THE SAME HAS BEEN ACCEPTED AS GENUINE CHARITABL E ACTIVITY IN THE SCRUTINY PROCEEDINGS COMPLETED U/S 143(3) OF THE ACT DATED 2 9.12.2006 FOR THE ASST YEAR 2004- 05. THE LEARNED AR ARGUED THAT THE ASSESSEE HAS BE EN REGULARLY FILING ITS RETURNS OF INCOME FOR ALL THE EARLIER YEARS. HE ARGUED THAT E VEN UP TO ASST YEAR 2008-09, THIS ACTIVITY OF THE ASSESSEE TRUST HAS BEEN ACCEPTED BY THE REVENUE AS GENUINE CHARITABLE ACTIVITY. WE FIND THAT FROM ASST YEAR 2002-03 TO ASST YEAR 2008-09, THE ONLY YEAR WHICH UNDERWENT SCRUTINY WAS ASST YEAR 2004-05 AND OTHER ASSESSMENT YEARS WERE PRESUMED TO BE COMPLETED U/S 143(1) OF THE ACT AND NO CONTRARY EVIDENCE HAS BEEN SUBMITTED IN THIS REGARD BY BOTH THE PARTIES. 8 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 8.1. WE FIND THAT THE PROVISIONS OF SECTION 12AA( 3) OF THE ACT COULD BE INVOKED IN THE FOLLOWING CIRCUMSTANCES :- WHEN THE PRINCIPAL COMMISSIONER OR COMMISSIONER IS SATISFIED THAT - THE ACTIVITIES OF THE TRUST ARE NOT GENUINE OR - ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OB JECTS OF THE TRUST OR INSTITUTION, AS THE CASE MAY BE. IT IS NOT THE CASE OF THE REVENUE THAT THE ACTIVITY CARRIED OUT IN SOLACE IS NOT A GENUINE ACTIVITY. IN ANY CASE, THE LEARNED DIT (E) HAD HEL D THAT THE OBJECTS CARRIED OUT BY THE ASSESSEE TRUST FALLS IN THE FOURTH LIMB OF THE DEFI NITION OF CHARITABLE PURPOSE U/S 2(15) OF THE ACT I.E ADVANCEMENT OF ANY OTHER OBJECT OF GE NERAL PUBLIC UTILITY. HENCE WE FIND THAT THE LEARNED DIT(E) HAD ACCEPTED THE OBJECTS OF THE ASSESSEE TO BE CHARITABLE IN NATURE . HAVING CONSTRUED SO, THERE IS NO NEED TO CANCEL THE REGISTRATION U/S 12AA(3) OF THE ACT. THE REVENUE, IF IT IS OF THE OPINION THA T THE ASSESSEE FALLS UNDER THE FOURTH LIMB OF THE DEFINITION U/S 2(15) OF ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY AND THEREBY THE PROVISO THEREON WOULD BECOME APPLIC ABLE, IS AT LIBERTY TO LOOK INTO THE SAME IN THE ASSESSMENT PROCEEDINGS FOR THE PURPOSE OF GRANTING EXEMPTION U/S 11 OF THE ACT , BUT THAT DOES NOT ENTITLE THE LEARNED DIT(E) TO INVOKE THE PROVISIONS OF SECTION 12AA(3) OF THE ACT FOR CANCELLATION OF REGISTRATION OF THE TRUST. THERE MAY BE A SITUATION THAT IN ONE YEAR THE GROSS RECEIPTS, IF F OURTH LIMB IS CONSIDERED AS APPLICABLE TO TRUST, MIGHT EXCEED RS 25 LACS AND ACCORDINGLY THE OBJECTS MIGHT NOT BE CHARITABLE IN NATURE, WHEREAS IN ANOTHER YEAR, THE GROSS RECEIPTS MIGHT BE LESS THAN THE PERMISSIBLE LIMITS AND ACCORDINGLY THE ACTIVITIES WOULD BE CONS TRUED AS CHARITABLE IN NATURE. HENCE UNDER THESE CIRCUMSTANCES, IF THE REGISTRATION U/S 12AA OF THE ACT IS CANCELLED, THEN THE MAXIMUM ELIGIBLE AMOUNT PRESCRIBED IN THE PROVISO T O SECTION 2(15) OF THE ACT ITSELF WOULD BECOME REDUNDANT AND UNWORKABLE. IN THIS REG ARD, THE RELIANCE PLACED BY THE LEARNED AR ON THE DECISION OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF TAMIL NADU CRICKET ASSOCIATION VS DIT(E) REPORTED IN (20 14) 360 ITR 633 (MAD) IS DIRECTLY ON THE POINT AND IS FAVOURABLE TO THE ASSESSEE, WHE REIN IT WAS HELD THAT :- 32. THUS, IN CONTRAST TO SECTION 12AA(1)(B) OF TH E INCOME-TAX ACT, 1961, WHERE THE GRANT OF REGISTRATION REQUIRES SATISFACTION ABOUT THE OBJ ECTS OF THE TRUST AS WELL AS THE GENUINENESS OF THE ACTIVITIES, FOR THE CANCELLATION OF THE REGISTRATION UNDER SECTION 9 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 12AA(3), ALL THAT IT IS INSISTED UPON IS THE SATISF ACTION AS TO WHETHER THE ACTIVITIES OF THE TRUST OR INSTITUTION ARE GENUINE OR NOT AND WHETHER THE ACTIVITIES ARE BEING CARRIED ON IN ACCORDANCE WITH THE OBJECTS OF THE TRUST. THUS, EVE N IF THE TRUST IS A GENUINE ONE, I.E., THE OBJECTS ARE GENUINE, IF THE ACTIVITIES ARE NOT GENU INE AND THE SAME NOT BEING CARRIED ON IN ACCORDANCE WITH THE OBJECTS OF THE TRUST, THIS WILL OFFER A GOOD GROUND FOR CANCELLATION. THUS, IN EVERY CASE, GRANT OF REGISTRATION AS WELL AS CANCELLATION OF REGISTRATION RESTS ON THE SATISFACTION OF THE COMMISSIONER ON FINDINGS GI VEN ON THE PARAMETERS GIVEN IN SECTION 12AA(1) AND SECTION 12AA(3) OF THE ACT, AS THE CASE MAY BE. 33. REGISTRATION OF THE TRUST UNDER THE ACT CONFERS CERTAIN BENEFITS FROM TAXATION UNDER THE PROVISIONS OF THE ACT. THE CONDITIONS UNDER WHICH T HE INCOME OF THE TRUST WOULD BE EXEMPTED UNDER THE PROVISIONS OF THE ACT ARE CLEARL Y LAID DOWN UNDER SECTION 11 AS WELL AS IN SECTION 12 OF THE ACT. SECTION 11 OF THE ACT SPECIFICALLY POINTS OUT THE CIRCUMSTANCES UNDER WHICH INCOME OF THE TRUST IS NOT TO BE INCLUD ED IN THE TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON. SO TOO, SECTION 12 OF THE ACT O N THE INCOME DERIVED FROM PROPERTY HELD FOR CHARITABLE OR RELIGIOUS PURPOSES. 34-35. THUS, WHEN THE ASSESSEE IS IN RECEIPT OF INC OME FROM ACTIVITIES, WHICH FITS IN WITH SECTIONS 11 AND 12 OF THE ACT AS WELL AS FROM SOURC ES WHICH DO NOT FALL STRICTLY WITH THE OBJECTS OF THE TRUST, WOULD NOT GO FOR CANCELLATION OF REGISTRATION UNDER SECTION 12AA OF THE ACT ON THE SOLE GROUND THAT THE ASSESSEE IS IN RECEIPT OF INCOME WHICH DOES NOT QUALIFY FOR EXEMPTION STRAIGHTAWAY BY ITSELF. ALL THAT ULTI MATELY WOULD ARISE IN SUCH CASES IS THE QUESTION OF CONSIDERING WHETHER SECTION 11 OF THE A CT WOULD AT ALL APPLY TO EXEMPT THESE INCOME FROM LIABILITY. THESE ARE MATTERS OF ASSESSM ENT AND HAS NOTHING TO DO WITH THE GENUINENESS OF THE ACTIVITY OR THE ACTIVITIES NOT I N CONFORMITY WITH THE OBJECTS OF THE TRUST. AS RIGHTLY POINTED OUT BY LEARNED SENIOR COUNSEL AP PEARING FOR THE ASSESSEE, AS IS EVIDENT FROM THE READING OF CIRCULAR NO. 11 OF 2008, DATED DECEMBER 19, 2008, THE OBJECT OF THE INSERTION OF FIRST PROVISO TO SECTION 2(15) OF THE ACT WAS ONLY TO CURTAIL INSTITUTION, WHICH UNDER THE GARB OF 'GENERAL PUBLIC UTILITY', CARRY O N BUSINESS OR COMMERCIAL ACTIVITY ONLY TO ESCAPE THE LIABILITY UNDER THE ACT THEREBY GAIN UNMERITED EXEMPTION UNDER SECTION 11 OF THE ACT. 8.1.1. WE FIND THAT SIMILAR ISSUE WAS ADDRESSED BY THE CO-ORDINATE BENCH OF MUMBAI TRIBUNAL IN THE CASE OF GHATKOPAR JOLLY GYMKHANA VS DIT(E) REPORTED IN (2013) 40 TAXMANN.COM 207 (MUMBAI-TRIB) DATED 23.10.2013 WHEREIN THE FACTS BEFORE THE MUMBAI TRIBUNAL ARE AS BELOW:- THE ASSESSEE A CLUB WAS ENGAGED IN ENCOURAGING AN D PROMOTING SPORTS, PASTIMES AND ATHLETICS AND SOCIAL CONTRACT AMONGST ITS MEMBER ASSESSEE WAS REGISTERED AS A CHARITABLE TRUST, FALLING IN THE CA TEGORY OF ADVANCEMENT OF ANY OTHER OBJECTS OF GENERAL PUBLIC UTILITY AS PER THE DEFINITION OF CHARITABLE PURPOSE GIVEN UNDER SECTION 2(15). THE DIRECTOR (EXEMPTION) NOTICED THAT THE ASSESSEE WAS CARRYING OUT ACTIVITIES IN THE NATURE OF TRADE, COMMERCE OR BUSI NESS, ETC. AND GROSS RECEIPTS THEREFROM WERE IN EXCESS OF RS. 10 LAKHS AND BY TAK ING RESORT TO THE NEWLY ADDED PROVISO W.E.F. 1-4-2009 TO SECTION 2(15), HE CANCEL LED THE REGISTRATION OF ASSESSEE. HE HAD FURTHER HELD THAT ONCE A TRUST LOSE ITS IDEN TITY OR CHARACTER OR CHARITABLE TRUST, IT BECAME A NON-GENUINE CHARITABLE TRUST. 10 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 ON APPEAL, THE ASSESSEE SUBMITTED THAT REGISTRATIO N ONCE GRANTED TO THE ASSESSEE BEING A CHARITABLE INSTITUTION COULD NOT B E CANCELLED OR TAKEN AWAY BECAUSE OF THE NEWLY INSERTED PROVISO TO SECTION 2( 15) WHICH DEFINES CHARITABLE PURPOSES. THE DECISION OF THE MUMBAI TRIBUNAL ON THE SAID CAS E IS AS UNDER: 5.4 THUS, THE ACTION OF THE CIT(A) RELYING UPON THE NEWLY INSERTED PROVISO FROM 01.04.2009 IN CANCELLING THE REGISTRATION OF THE TR UST, IN OUR VIEW, IS NOT CORRECT OR JUSTIFIED. THE ONLY EFFECT WILL BE THAT THE ASSESSE E WILL NOT BE ENTITLED FOR EXEMPTION OR TAX BENEFITS WHICH OTHERWISE WOULD HAVE BEEN AVA ILABLE TO IT BEING REGISTERED AS CHARITABLE INSTITUTION, FOR THE RELEVANT YEAR DURIN G WHICH ITS INCOME HAS CROSSED THE LIMIT OF RS.10.00 LACS. SUBJECT TO OUR ABOVE OBSERV ATIONS CANCELLATION OF REGISTRATION ITA NO.882/M/12 A.Y.09-10 9 GRANTED TO ASSESSEE U/S. 12A IS HEREBY SET ASIDE AND SAME IS HEREBY ORDERED TO BE RESTORED . 8.1.2. WE FIND THAT THE CBDT HAD COME OUT WITH A C IRCULAR VERY RECENTLY VIDE CIRCULAR NO. 21/2016 (F.NO. 197/17/2016-ITA-I) DATED 27.5.20 16 AS BELOW:- SECTIONS 11 AND 12 OF THE INCOME-TAX ACT, 1961 ('AC T') EXEMPT INCOME OF CHARITABLE TRUSTS OR INSTITUTIONS, IF SUCH INCOME IS APPLIED F OR CHARITABLE PURPOSE AND SUCH INSTITUTION IS REGISTERED UNDER SECTION 12AA OF THE ACT. 2. SECTION 2(15) OF THE ACT PROVIDES DEFINITION OF 'CH ARITABLE PURPOSE'. IT INCLUDES 'ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY' PROVIDED IT DOES NOT INVOLVE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS ETC. FOR FINANCIAL CONSIDERATION. THE 2ND PROVISO TO SAID SECTION, INT RODUCED W.E.F. 1-4-2009 VIDE FINANCE ACT 2010, PROVIDES THAT IN CASE WHERE THE ACTIVITIE S OF ANY TRUST OR INSTITUTION IS OF THE NATURE OF ADVANCEMENT OF ANY OTHER OBJECT OF GENERA L PUBLIC UTILITY AND IT INVOLVES CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS; BUT THE AGGREGATE VALUE OF RECEIPTS FROM SUCH COMMERCIAL AC TIVITIES DOES NOT EXCEED RS. 25,00,000/- IN THE PREVIOUS YEAR, THE PURPOSE OF SU CH TRUST/INSTITUTION SHALL BE DEEMED AS 'CHARITABLE' DESPITE IT DERIVING CONSIDERATION FROM SUCH ACTIVITIES. HOWEVER, IF THE AGGREGATE VALUE OF THESE RECEIPTS EXCEEDS THE SPECI FIED CUT-OFF, THE ACTIVITY WOULD NO LONGER BE CONSIDERED AS CHARITABLE AND THE INCOME O F THE TRUST/INSTITUTION WOULD NOT BE ELIGIBLE FOR TAX EXEMPTION IN THAT YEAR. THUS AN EN TITY, PURSUING ADVANCEMENT OF OBJECT OF GENERAL PUBLIC UTILITY, COULD BE TREATED AS A CHARI TABLE INSTITUTION IN ONE YEAR AND NOT A CHARITABLE INSTITUTION IN THE OTHER YEAR DEPENDING ON THE AGGREGATE VALUE OF RECEIPTS FROM COMMERCIAL ACTIVITIES. THE POSITION REMAINS SIMILAR WHEN THE FIRST AND SECOND PROVISOS OF SECTION 2(15) GET SUBSTITUTED BY THE NEW PROVISO IN TRODUCED W.E.F. 1-4-2016 VIDE FINANCE ACT, 2015, CHANGING THE CUT-OFF BENCHMARK AS 20% OF THE TOTAL RECEIPTS INSTEAD OF THE FIXED LIMIT OF RS.25,00,000/- AS IT EXISTED EARLIER . 3. THE TEMPORARY EXCESS OF RECEIPTS BEYOND THE SPECIFI ED CUT-OFF IN ONE YEAR MAY NOT NECESSARILY BE THE OUTCOME OF ALTERATION IN THE VER Y NATURE OF THE ACTIVITIES OF THE TRUST OR INSTITUTION REQUIRING CANCELLATION OF REGISTRATION ALREADY GRANTED TO THE TRUST OR INSTITUTION. HENCE, SECTION 13 OF THE ACT HAS BEEN AMENDED VIDE FINANCE ACT, 2012 BY INSERTING A NEW SUB-SECTION (8) THEREIN TO PROVIDE THAT SUCH ORGANIZATION WOULD NOT GET BENEFIT OF TAX EXEMPTION IN THE PARTICULAR YEAR IN WHICH ITS RECEIPTS FROM COMMERCIAL ACTIVITIES EXCEED THE THRESHOLD WHETHER OR NOT THE REGISTRATION GRANTED IS CANCELLED. THIS AMENDMENT HAS TAKEN EFFECT RETROSPECTIVELY FROM 1ST APRIL, 2009 AND ACCORDINGLY APPLIES IN RELATION TO THE ASSESSMENT YEAR 2009-10 ONWARDS. 4. IN VIEW OF THE AFORESAID POSITION, IT IS CLARIFIED THAT IT SHALL NOT BE MANDATORY TO CANCEL THE REGISTRATION ALREADY GRANTED U/S 12AA TO A CHAR ITABLE INSTITUTION MERELY ON THE GROUND 11 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 THAT THE CUT-OFF SPECIFIED IN THE PROVISO TO SECTIO N 2(15) OF THE ACT IS EXCEEDED IN A PARTICULAR YEAR WITHOUT THERE BEING ANY CHANGE IN T HE NATURE OF ACTIVITIES OF THE INSTITUTION. IF IN ANY PARTICULAR YEAR, THE SPECIFI ED CUT-OFF IS EXCEEDED, THE TAX EXEMPTION WOULD BE DENIED TO THE INSTITUTION IN THAT YEAR AND CANCELLATION OF REGISTRATION WOULD NOT BE MANDATORY UNLESS SUCH CANCELLATION BECOMES NECES SARY ON THE GROUND(S) PRESCRIBED UNDER THE ACT. 5. WITH THE INTRODUCTION OF CHAPTER XII-EB IN THE ACT VIDE FINANCE ACT, 2016, PRESCRIBING SPECIAL PROVISIONS RELATING TO TAX ON ACCRETED INCO ME OF CERTAIN TRUSTS AND INSTITUTIONS, CANCELLATION OF REGISTRATION GRANTED U/S 12AA MAY L EAD TO A CHARITABLE INSTITUTION GETTING HIT BY SUB-SECTION (3) OF SECTION 115TD AND BECOMIN G LIABLE TO TAX ON ACCRETED INCOME. THE CANCELLATION OF REGISTRATION WITHOUT JUSTIFIABL E REASONS MAY, THEREFORE, CAUSE ADDITIONAL HARDSHIP TO AN ASSESSEE INSTITUTION DUE TO ATTRACTION OF TAX-LIABILITY ON ACCRETED INCOME. THE FIELD AUTHORITIES ARE, THEREFORE, ADVIS ED NOT TO CANCEL THE REGISTRATION OF A CHARITABLE INSTITUTION GRANTED U/S 12AA JUST BECAUS E THE PROVISO TO SECTION 2(15) COMES INTO PLAY. THE PROCESS FOR CANCELLATION OF REGISTRA TION IS TO BE INITIATED STRICTLY IN ACCORDANCE WITH SECTION 12AA(3) AND 12AA(4) AFTER C AREFULLY EXAMINING THE APPLICABILITY OF THESE PROVISIONS. 6. THE ABOVE MAY BE BROUGHT TO THE NOTICE OF ALL CONC ERNED. 8.2. THE ISSUE BEFORE US IS ONLY AS TO WHETHER THE LEARNED DIT(E) IS JUSTIFIED IN CANCELLING THE REGISTRATION U/S 12AA(3) OF THE ACT. AT THE COST OF REPETITION, WE WOULD LIKE TO STATE THAT THE LEARNED DIT(E) HIMSELF HAD S TATED IN HIS ORDER THAT THE ACTIVITY OF SOLACE WOULD FALL UNDER THE FOURTH LIMB OF THE DE FINITION OF CHARITABLE PURPOSE U/S 2(15) OF THE ACT I.E ADVANCEMENT OF ANY OTHER OBJE CT OF GENERAL PUBLIC UTILITY. HENCE IN VIEW OF THE AFORESAID FINDINGS AND JUDICIAL PREC EDENTS RELIED UPON AND IN VIEW OF THE CBDT CIRCULAR NO. 21/2016 DATED 27.5.2016, WE HOLD THAT THE LEARNED DIT(E) SHOULD NOT HAVE RESORTED TO THE ACT OF CANCELLATION OF REG ISTRATION U/S 12AA(3) OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. THE OTHER ISS UES, REGARDING WHETHER THE PRANIC HEALING ACTIVITY WOULD FALL UNDER THE DEFINITION OF MEDICAL RELIEF OR WHETHER SOLACE IS A HEALTH CLUB/SPA OR NOT, ARE LEFT OPEN AS THE SAME ARE NOT RELEVANT FOR ADJUDICATION AT PRESENT IN THIS CASE. ACCORDINGLY, THE GROUNDS RA ISED BY THE ASSESSEE ARE ALLOWED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED. 10. ORDER IS PRONOUNCED IN THE OPEN COURT ON 08.06. 2016 SD/- SD/- (N. V. VASUDEVAN) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED : 8 TH JUNE, 2016 JD.(SR.P.S.) 12 ITA NO.398/K/2012 LOTUS CHARITABLE TRUST AY 2009-10 COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT LOTUS CHARITABLE TRUST, 4, SUNNY PARK, KOLKATA-700019 2 RESPONDENT DIT(E), KOLKATA. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .