HIGH COURT OF JUDICATURE AT HYDERABAD FOR STATE OF TELANGANA AND STATE OF ANDHRA PRADESH PRESENT HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.448 OF 2014 DATED: 24.07.2014 Between: Director of Income Tax (Exemptions), Hyderabad Appellant And M/s.Project Management Institute Pearl City Chapter Respondent HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.448 of 2014 JUDGMENT: (per Hon ble Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred against judgment and order of learned Tribunal dated 18.01.2013 in I.T.A.No.217/Hyderabad/2012 in relation to assessment year 2011-12, on following suggested questions of law. 1. Whether, on facts and in circumstances of case and specifically when as per MOU dated 01.01.2010 entered between assessee and M/s.Deloitte, it is mentioned that assessee is in business of providing consulting and project management services, order of Hon ble ITAT, holding that activities of assessee could not be said to be inconsistent with objects of Trust is not perverse? 2. Whether, on facts and in circumstances of case, Hon ble Tribunal is correct in law holding that action of Director of Income-tax (Exemptions) in cancelling registration is not in accordance with law? 3. Whether on facts and circumstances of case, Hon ble ITAT is correct in law in setting aside order of Director of Income Tax (Exemption) dated 12.12.2011, cancelling registration under Section 12AA of IT Act, 1961 in case of assessee? Director of Income-tax (Exemption) earlier granted registration under Section 12AA of Income-tax Act, 1961 to assessee but thereafter, by order, dated 12.12.2011 cancelled same. Director having considered memorandum of understanding entered with third parties, namely, Deloitte, Computer Society of India (CSI) and Microsoft, thought that object of charitable activities has been defeated. Learned Tribunal after examining entire issue on fact found that there has been no evidence that assessee has ceased charitable activity, for which, exemption was granted. We have seen order of Director of Income tax (Exemptions) and findings of learned Tribunal recorded in impugned judgment and order. We are of view finding of Director that assessee stopped charitable activity is not correct taking note of aims and objects mentioned in trust deed. 1. Provide common platform/net work to exchange knowledge, information and expertise among members. 2. Bring best industry practices together by cross fertilization of ideas from industry and institutions. 3. Promote and professionalize project management body of knowledge through different means like education, seminars, work shops, certifications and piloting. 4. Translate knowledge, skill and best industry practices to benefit social, environmental and government projects and other initiatives eventually to benefit common man. It is appropriate to record here that on basis of aforesaid objects, assessee was earlier granted exemption. There has been no finding that aforesaid object clause has been defeated by undertaking any venture. According to us, by Memorandum of Understanding, objects of trust/institution were sought to be achieved in better way, for which, exemption was granted. learned Tribunal on fact found that expenditure incurred on account of International student leadership day and Student leadership competency building is not meager when compared to total receipts. Therefore, we dismiss this appeal as no element of law is involved to be decided by this Court. No order as to costs. _____ K.J. SENGUPTA, CJ 24th JULY, 2014. ___ SANJAY KUMAR, J kvni Director of Income-tax (Exemptions), Hyderabad v. Project Management Institute Pearl City Chapter