TMI Blog2005 (4) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... the port organisation hitherto belonging to the State Government is considered not to have created a lawful trust within the meaning of term trust used for the purpose of ss. 11, 12, 12A, 12AA and 13 of the IT Act, 1961. (2) Gujarat Maritime Board was created as a local authority within the meaning of term "person" for the purpose of IT Act, 1961 and with effect from its inception to March, 2003, the applicant continues to be local authority in the eyes of law. It cannot be considered as a public trust or charitable trust of any other kind. (3) The application filed under s. 12A is late by 21 years and the unusual delay stated by the applicant to be the absence of any requirement on its part to file for such registration as a charitable trust since the absolute exemption was enjoyed by the Board from the charge of income-tax under earlier provision of s. 10(20) cannot be considered to be a valid reason excepting an attempt on the part of the Gujarat Maritime Board to come out of the charge of income-tax. (4) The application filed contained certain technical defects relating to the name and address of the original founder/author/settlor of the trust property and the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for registration of the trust or institution in the prescribed form and in the prescribed manner to the CIT before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under s. 12AA: Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of ss. 11 and 12 shall apply in relation to the income of such trust or institution,— (i) from the date of the creation of the trust or the establishment of the institution if the CIT is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons; (ii) from the 1st day of the financial year in which the application is made, if the CIT is not so satisfied; (b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of s. 11 and s. 12 exceeds thousand rupees in any previous year, the account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dure for registration of trust. As per s. 12AA(1) any trust or institution can make an application under s. 12A(a) of the Act for the registration. It is contended by the learned counsel before us that the assessee is not a trust but it is an institution which is lawfully created by the State Government. Therefore, it is an institution which is entitled to apply for registration under s. 12A of the Act. The learned Departmental Representative could not satisfy us that the assessee is not an institution. We, therefore, hold that the assessee is an institution within the meaning of s. 12A(1). 5. The CIT has held that the assessee was created as a local authority within the meaning of "person" for the purpose of IT Act, 1961 and therefore, it cannot be considered as a public trust or charitable trust. We find that s. 2(31) of the IT Act, 1961 defines the word "person" as under: "2(31)—'Person' includes— (i) an individual, (ii) a HUF, (iii) a company, (iv) a firm, (v) an AOP or a BOI, whether incorporation or not, (vi) a local authority, and (vii) every artificial juridical person, not falling within any of the preceding sub-clauses." In the above definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the settlor or author of the trust. 7.1 After considering the arguments of both the parties, we agree with the contention of the learned counsel. When the assessee came into existence by an Act of the legislature, there is no person who can be named as founder/author or settlor. Since no individual is a founder/author or settlor of the assessee, the question of furnishing the name and address of the founder/author or settlor by the assessee, does not arise. 8. The CIT has stated that ss. 11, 12 and 13 provide tax incentives to the private individuals and not to the public enterprises/public sector undertakings. The learned senior Departmental Representative also vehemently contended that the assessee is a statutory body and it is discharging its duties as provided in GMTB Act, 1981. The statutory bodies or public enterprises or public sector undertakings are created for discharging their specific duties and, therefore, they cannot be said to be doing any charitable work. He contended that the statutory body is not entitled to exemption under s. 11. The learned counsel for the assessee has strongly opposed to the above submissions of the learned Departmental Representativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the IT Act defines the words "charitable purpose" as under: "2(15) 'charitable purpose' includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility." From the above definition of "charitable purpose", it is evident that advancement of any other object of general public utility is also charitable purpose. The above definition of "charitable purpose" is modified by the Finance Act, 1983, w.e.f. 1st April, 1984. Before the above amendment, the purpose, i.e., advancement of any other object of general public utility was qualified by the words "not involving the carrying on of any activity for profit". However, the Finance Act, 1983 has omitted the words "not involving the carrying on of any activity for profit". Therefore, after the omission of the above words, if an activity which is for the purpose of advancement of an object of general public utility is carried out with profit motive, it would fall within the definition of "charitable purpose" under s. 2(15). Though the legislature by simultaneous amendment under s. 11(4A) has provided that the exemption under s. 11 shall not be available in relation to any income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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