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I.T.A. Nos.3021 to 3026/Chny/16 Therefore, in view of above discussions and the binding ratio of the decision of the High Court in the assessee's own case quoted supra as also the jurisdictional ITAT judgment in the case of Sri Narayana Guruviah Chetty Estate and respectfully following the same, the running of the kalyanamandapams, hostels, auditoriums etc by the instant Society/Trust could be said to be incidental to the attainment of the objects of the instant Trust which remained constant and unchanged since its formation of charitable nature, including more particularly for education, medical relief and relief of the poor as stated earlier and since income arising there from was being utilized/applied too for the stated charitable objects of the assessee, albeit in many cases through other similarly placed charitable Trusts, having charitable objects particularly of the first three limbs of Sec.2(15), the instant appellant was therefore eligible for exemption u/s 11 including on the income derived undisputedly from the aforesaid properties held under trust and therefore the A.O. is directed to allow exemption u/s 11 of the Act in all the years in appeal where such claim has been made. In the result, this ground is allowed for all the three years the issue is raised in appeal."

34. On the contrary, Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the object of the trust is education and medical relief besides other charitable activities as described in the trust deed. The conclusion of the Assessing Officer, according to the Ld. counsel, that the assessee is predominantly involved in I.T.A. Nos.3021 to 3026/Chny/16 advancement of general public utility is not supported by any material evidence. According to the Ld. counsel, the assessee was registered as charitable institution which continues to carry on educational and medical relief to poor besides other activities as described in the trust deed. According to the Ld. counsel, in the assessment year 2004-05, for the purpose of accumulated income, the assessee filed Form No.10B showing the purpose for which the income was accumulated. According to the Ld. counsel, the assessee clearly disclosed in Form 10B that the surplus income was accumulated for the purpose of constructing building for carrying out charitable activities. Therefore, according to the Ld. counsel, proviso to Section 2(15) of the Act has no application in the case of the assessee. According to the Ld. counsel, letting out the building to corporate companies and running of Kalyana Mandapams, auditorium, hostel for students and working women are incidental to the main object of the assessee-trust. Therefore, according to the Ld. counsel, proviso to Section 2(15) of the Act has no application at all. Referring to proviso to Section 2(15) of the Act and CBDT circular, the Ld.counsel submitted that proviso to Section 2(15) of the Act will not be applicable to educational and medical I.T.A. Nos.3021 to 3026/Chny/16 trust. It is applicable only in respect of the trusts which are rendering service in trade, commerce or business. In this case, the main object of the trust is not business, trade or commerce or rendering any service to trade. Therefore, according to the Ld. counsel, the amendment made by the Parliament by inserting the proviso to Section 2(15) of the Act is not applicable at all.

35. Shri S. Sridhar, the Ld.counsel for the assessee, further submitted that the assessee-trust was established in the year 1924. Referring to the judgment of Apex Court in ACIT v. Surat City Gymkhana (2008) 300 ITR 214, the Ld.counsel submitted that once the assessee-trust was registered under Section 12AA of the Act and the registration continues till date, the A.O. cannot probe into the objects of the trust. What the Assessing Officer can do is he can verify whether the assessee is carrying on the activity in furtherance of its object for which it was established. According to the Ld. counsel, the Assessing Officer cannot say that the object of the trust is not charitable one. It is for the Director of Income Tax (Exemptions) to examine the same in case the activity was not carried on as per the object of the trust as provided in Section 12AA(3) of the Act. Therefore, according to the Ld. counsel, the I.T.A. Nos.3021 to 3026/Chny/16 Assessing Officer is not correct in saying that the assessee is carrying on business activity. According to the Ld. counsel, the rental income from "Sigappi Aachi" building was used for carrying out the charitable activities in furtherance of the object of the trust.