Indian Kanoon - Search engine for Indian Law

For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer may be restored."

3. Facts are, in brief, that the assessee M/s. The Indian Cultural Research Trust has established Research Institute for learning and research and study in depth of all Vedas and effect of Vedic chants on human life, nature and universe. The trust also has objects of awarding scholarships to students and gives donation to any trust existing for charitable purpose etc. The trust initially carried out research activities more than 25 years ago on the main objects. However, the results were not encouraging and became purpose less. The trust therefore decided to 5 I.T.A. Nos. 586/Chny/15, 2976-2978/Chny/16 & 3018-3020/Chny/16 pursue the other objects. For the sake of convenience, the objects of the Trust are extracted as under:

3.2 The Assessing Officer issued a notice under section 142(1) of the Act and in response to this, the assessee has filed a letter dated 10.07.2013 stating that the trust's object initially was to establish Research Institute for learning and research and study in depth of all Vedas and effect of Vedic chants on human life, nature and universe. The trusts also have objects of awarding scholarships to students and give donation to any trust existing for charitable purposes etc. the trust initially carried out research activities more than 25 years ago on the main object. However, since the results were not encouraging and became purposeless, the assessee trust focused to construct Multi Storied Commercial Buildings for corporate houses. Though the assessee has earned a huge income from the properties, the income was not used for the purpose of charity.

5.8 The A.O had brought out the case of Info Parks Vs. DCIT reported in 329 IIR 104 Ker, wherein it was held that letting on rent commercial building to software companies was an activity of commercial in nature and cannot be treated as income from properties and in the case of the Appellant multistoried commercial complex constructed and let out to various corporate houses. The Appellant has countered it saying that it is a charitable trust and it is permitted to put up buildings and let it out and use proceeds for charitable purposes. Hence, the case of Info Parks is not applicable since Info Parks is not a charitable trust and its objectives are totally different from that of the Appellant trust.