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charitable objects. For the relevant AY 2018-19, the assessee had filed return of income declaring NIL total income after claiming exemption u/s 11 of the Act. The case of the assessee was selected for scrutiny u/s 143(2) of the Act dated 22.09.2019, on the CASS reason - 'Receipts of the Trust'. After examining the details furnished by the assessee, including its Trust deed, financials, details of receipts, note on activities, separate accounts of petrol pumps including its financials, details of employees etc., the Assessing Officer, National Faceless Assessment Centre [in short 'AO'] is noted to have issued show cause notice u/s 142(1) of the Act dated 14.01.2021 proposing to deny the exemption claimed u/s 11 of the Act in relation to the surplus of Rs.73,27,209/- derived from the petrol outlet on the ground that, although separate books of accounts were being maintained for this business, this business activity was not incidental to the attainment of the objects of the Trust as required u/s 11(4A) of the Act. It is noted that, the assessee had furnished its explanation on 22.01.2021 in which, the assessee had explained that, running the petrol outlet was not its object but an incidental activity to the attainment of the main charitable object i.e. education. The assessee is noted to have submitted that, the petrol outlet was being run to generate surplus for meeting the costs and expenses for achieving the main charitable object of the Trust which was running & maintenance of the music school and library. The assessee brought to the notice of the AO that, on the identical line of reasoning, the assessee's claim of exemption u/s 11 of the Act in respect of the surplus derived by the Petrol outlet, was denied in the income tax assessment completed u/s 143(3) of the Act, for the earlier AY 2012-13. Thereafter, pursuant to a petition filed u/s 264 of the Act, the Ld. CIT(E) had examined the factual matrix of its case and in his revisionary order passed u/s 264 of the Act dated 14.03.2016 for AY 2012-13, the Ld. CIT(E) had set aside the assessment and directed the AO A.Y 2018-19 Smt. Lingammal Ramaraju Shastra Prathistha Trust :- 3 -:
is noted to have further explained that, the Trust was pursuing the charitable object of education and it didn't have any object of General Public Utility ('GPU') and therefore the decision of the Hon'ble Supreme Court in AUDA being relied upon by the Ld. CIT(E) in the show cause notice for denying the exemption claimed u/s 11 of the Act, was distinguishable, as the said decision was rendered only in the context of 'GPU' trusts and not to 'per se charitable' trusts. It was also submitted that, the decision of Hon'ble Apex Court in the case of New Noble was rendered in the context of exemption u/s 10(23C)(vi) of the Act and not to the charitable institutions registered u/s 12A claiming exemption u/s 11 of the Act and therefore this decision also was of no relevance. It was accordingly explained that, the decision of the Hon'ble Supreme Court in Thanthi Trust which was applicable to 'per se charitable' trusts and the findings given in the revisionary order u/s 264 of the Act passed in assessee's own case for AY 2012-13 continued to hold good and that there was no error committed by the AO nor was any prejudice caused to the interests of the Revenue by the AO, while allowing the exemption u/s 11 of the Act, in the assessment order passed u/s 143(3) of the Act for AY 2018-19.

19. The Ld. CIT, DR further argued that, the case facts of Thanthi Trust were different from that of the assessee. In that case, the 'business was held under trust' in terms of Section 11(4) of the Act, while in the assessee's case, the 'business is not held under trust' and thus assessee's case was to be examined under the provisions of sec 11(4A) of the Act alone. According to him, the assessee failed the test of the first condition that, the business should be incidental to the attainment of the objectives of the trust and therefore the ratio laid down in Thanthi Trust cannot be extended to the assessee, as the business being carried on was not held under trust and whose income is utilized to feed the charitable object of the trust.

well through notice u/s 142(1) of the Act to which the assessee is noted to have furnished its reply along with details. It is noted that, upon perusal of the same, the AO had issued show cause notice dated 14.01.2021 proposing to deny the exemption claimed u/s 11 of the Act in relation to the surplus of the petrol outlet amounting to Rs.73,27,209/- on the ground that, although separate books of accounts were being maintained for this business, but this business activity was not incidental to the attainment of the objects of the Trust as mandated u/s 11(4A) of the Act. To this, the assessee is noted to have furnished his explanation vide letter dated 22.01.2021 in which, it explained the facts of the case in as much as that the surplus of the said business activity was utilized for attaining the main charitable objects of the assessee trust and therefore it was in compliance with Section 11(4A) of the Act. The assessee is noted to have relied on the decision of Hon'ble Supreme Court in Thanthi Trust, which was prevalent and in force at that material time, and also the revisionary order dated 14.03.2016 passed u/s 264 of the Act by Ld. CIT(E) in assessee's own case for AY 2012-13, on the same set of facts & circumstances. Having considered the same, and in absence of change in facts or provisions of law, it is noted that, the AO had considered and accepted the same, and allowed the exemption claimed by the assessee u/s 11 of the Act inter alia including the surplus derived from petrol outlet. Accordingly, it can be seen that the AO had, in fact, made inquiries into the claim of exemption u/s 11 of the Act, more particularly, in relation to surplus of the petrol outlet and after applying his own mind, he had allowed the same. From these admitted facts, it cannot be said on the given facts and circumstances of the case that, it is a case of non-enquiry or lack of enquiry.