The act of renting out should not be construed to be an activity in the nature of trade, commerce or business. Secondly, assuming it is construed to be in the nature of trade, commerce or business, if the total receipts of rent is less than 20 percent of the total receipts of the trust. Thirdly, for reasons beyond the assessee’s control, the receipts do exceed twenty per cent, as per CBDT Circular 21 of 2016 dated may 27, 2016 it is clarified that it shall not be mandatory to cancel the registration already granted under section 12AA of the Act to a charitable institution merely on the ground that the cut-off specified in the proviso to section 2(15) of the Act is exceeded in a particular year without there being any change in the nature of activities of the institution. If in any particular year, the specified 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 necessary on the ground(s) prescribed under the Act.