TMI Blog2013 (7) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... e same objects contained in the memorandum of association. Registration of an institution under section 12A by itself is a sufficient proof of the fact that the trust or the institution concerned is created or established for charitable/general public utility purposes and it enjoys approval under section 80G of the Act - When on the same set of facts and circumstances of the case, renewal of registration under section 80G(5)(vi) has been granted for the earlier years and there being no change in the facts and circumstances of the years for which renewal is sought for. No any justification to reject the assessee's application for renewal of exemption certificate under section 80G(5)(vi) for the assessment year 2009-10 onwards - Director of Income-tax (Exemption)'s order rejecting the assessee's application under section 80G(5)(vi) is quashed – Decided in favor of Assessee. Further, relying upon the decision in the case of Sonepat Hindu Educational & Charitable Society v. CIT [2005 (5) TMI 52 - PUNJAB AND HARYANA High Court], wherein their Lordships applying the ratio of decision of the hon'ble Supreme Court in the case of Radhasoami Satsang v. CIT [1991 (11) TMI 2 - SUPREME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Societies Registration Act, 1860 on July 16, 1945. It was granted registration under section 12A of the Act by an order dated June 22, 2001 with retrospective effect from April 1, 1997, which is still subsisting. It was also granted exemption certificate under section 80G(5)(vi) of the Act by an order dated July 27, 2001 for the period July 8, 2001 to March 31, 2006, which was further renewed by an order dated January 16, 2007 for the assessment years 2007-08 to 2009-10. The assessee thus filed an application in Form 10G on March 10, 2010 before the Director of Income-tax (Exemption) for renewal of exemption certificate under section 80G(5)(vi) of the Income-tax Act, 1961. The Director of Income-tax (Exemption) vide his order dated September 3, 2010 rejected the said application by holding as under : On perusal of the application it was observed that authorities below did not recommend the case. Subsequently, in order to give the applicant another opportunity this office had issued letter dated August 19, 2010 fixing hearing on September 3, 2010. In compliance AR honorary secretary S.K. Bhatter appeared. On discussion it was found that the activities are beneficial to manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see submitted that to serve a charitable purpose, it is not necessary that the object should be to benefit the whole of mankind of even all persons living in a particular country or province. It is sufficient if the intention is to benefit a section of the public as specified from specified individuals. He further submitted that the assessee has been granted registration under section 12A, which is still in operation, by treating it as an institution established for charitable purpose and this reality by itself is sufficient proof of the fact that the assessee is established for charitable purposes. The Director of Income-tax (Exemption) while rejecting exemption certificate under section 80G(5)(vi) of the Act has not stated that the objects as set out in the memorandum of association are not for charitable purposes and exemption certificate granted in the earlier two occasions under similar objects and circumstances were in any way perverse. He, therefore, submitted that as the activity of the assessee is to provide various facilities in the field of hosiery trade and making available assistance to that industry in the shape of support services to entrepreneurs and investors in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon lease or otherwise the whole or any part of the property of the association for any of the above named purposes or otherwise. (d) To subscribe to any local or other charities and to grant donation for any public purpose and to provide a superannuation fund for the servants of the Association or otherwise assist such servants, their widows and children. (e) To foster and develop friendly relations, mutual help and common understanding among all who are directly or indirectly interested in or concerned with the manufacture of hosieries in India and particularly in Bengal. (f) To take all steps which may be necessary for promoting, supporting or opposing legislative and other actions affecting the aforesaid interests by any Government, or by any local body or bodies and in general to take the initiative to secure the welfare of the trade, commerce and manufacturer in which its members are interested as such. (g) To protect the interest of the members of the association as employers and to take steps for improving the relationship between the employers and the employees. (h) To make representations to local, central or imperial authorities, executive or legi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (u) To take over the assets and liabilities and the rights and privileges of the present unregistered association known as The Bengal Hosiery Manufacturers' Association and to function in all respects in continuation of the unregistered association under the same name and style. (v) To do all such things as may be directly or indirectly conducive or incidental to the carrying out or attainment of the above objects or any one of them, and it is hereby declared that in the interpretation of this clause, the meaning of any of the objects shall not except where otherwise expressed in such paragraph, be in any way limited or restricted by reference to any other objects or paragraph or by the juxtaposition of two or more objects and that in the event of any ambiguity, the clause shall be construed in such a way as to widen and not to restrict the power of the association. The admitted facts are that the assessee-association was registered under the Societies Registration Act since July 16, 1945. Further, considering the objects for which the assessee-association came into existence, as stated above, the learned Director of Income-tax (Exemption) vide an order dated Jun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under section 80G(5)(vi) has been granted. For the assessment year 2009-10 onwards, the assessee has filed application for renewal of exemption certificate. Therefore, when on the same set of facts and circumstances of the case, renewal of registration under section 80G(5)(vi) has been granted for the earlier years and there being no change in the facts and circumstances of the years for which renewal is sought for, we do not find any justification to reject the assessee's application for renewal of exemption certificate under section 80G(5)(vi) for the assessment year 2009-10 onwards. In view of the above, the Director of Income-tax (Exemption)'s order rejecting the assessee's application under section 80G(5)(vi) is quashed. We direct the Director of Income-tax (Exemption) to grant renewal of exemption certificate to the assessee for the period for which the application was filed. Hence the grounds of appeal taken by the assessee are allowed. Respectfully following the above decision of the Tribunal, we find no justification on the part of the Director of Income-tax (Exemption) to reject the assessee's application for renewal of exemption under section 80G(5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
