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2018 (10) TMI 1896 - ITAT MUMBAIExemption u/s 11 - Denying registration u/s 12A - grievance of the assessee is that the Director has unjustly denied registration u/s 12A notably, Sec. 12AA of the Act empowers the Director to grant registration after being satisfied about the objects of the Trust and the genuineness of its activities - HELD THAT:- In the present case, the primary object of the Trust is to administer financial assistance towards medical needs of the retired employees of Bank of India who are its Members and the dependent spouse of such retired employee-members in terms of the rules and regulations of the Scheme. As notable that the corpus of the Trust enures from one-time lump sum contribution equal to 100% of the basic pay last drawn received from the retired employees and the contribution received from Bank’s Central Welfare Committee. In sum and substance, the dominant object of the Trust is to provide assistance towards the medical needs of the retired employees of the Bank who are its Members in terms of the Scheme. At this stage, we may also observe that the expression “charitable purpose” has been defined in Sec. 2(15) of the Act to mean to include relief of poor, education, medical relief, etc. as well as advancement of any other objects of general public utility. The Director has denied exemption solely on the ground that assessee-trust’s objects are not for the benefit of the general public, but only for its specific Members/employees of Bank of India.The aforesaid proposition sought to be raised by the Director is quite untenable and is directly contrary to the observations in the case of Ahmedabad Rana Caste Association [1971 (9) TMI 8 - SUPREME COURT] Hon'ble Andhra Pradesh High Court in the case of Andhra Pradesh Police Welfare Society [1983 (3) TMI 19 - ANDHRA PRADESH HIGH COURT] the plea of the assessee for registration u/s 12A of the Act has to be upheld and on account of distinction in facts, in our view, the Director erred in relying on the decision of the Hon'ble Bombay High Court in the case of Zenith Tin Works Charitable Trust [1974 (7) TMI 29 - BOMBAY HIGH COURT] to deny registration u/s 12A of the Act to the assessee-trust. A perusal of the impugned order reveals that reference has also been made to the judgment of the Hon'ble Madras High Court in the case of Sakthi Charities vs CIT, [1984 (4) TMI 52 - MADRAS HIGH COURT]which, in our view, is also inapplicable as it was a case of a private employment. We hereby set-aside the order of the Director and hold that the assessee is eligible for registration u/s 12A of the Act. Accordingly, it is directed that registration u/s 12A of the Act be granted to be assessee. - Decided in favour of assessee.
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