TMI Blog2009 (6) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... for registration under section 12A of the Act in Form No. 10A on 24-7-2008. The original trust deed contained a clause as under : "Smt. Meena Anand shall remain the President of the trust for life. After his death any person nominated by him shall be the President. In case he dies without nominating any person then his son shall be the trustee and President of the trust. However, if at the time of his death his son is minor then his guardian will act in that capacity till the son of Smt. Meena Anand become major. This procedure shall continue in the next generation also." Later on by amendment to the trust deed the said clause was deleted and by executing supplementary trust deed on 31-10-2008. As per the trust deed, the assessee-trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , colleges, pathshalas, hostels and education to boys and girls and also to provide facilities for the development and advancement of education and knowledge. ( ix )To help poor or promising students in their studies by providing books, uniforms, meals, lodging and other necessaries or facilities and to provide stipends, scholarships, grants and aids for further studies. ( x )To establish, arrange and maintain rest houses public utilities for the benefit of the society. ( xi )To grant relief to the poor and distressed persons during and after natural calamities like famine, earthquakes, floods, draughts, etc. ( xii )To help indigent, poor and helpless families, individuals and persons. ( xiii )To start community, recreational, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 12A by observing as under : "4. Analysing the case in its entirety, it appears that the charity is being done only by Smile Train Inc. which funds the cleft lip operations. The assessee-trust charges its usual fee from the poor patients. Also the assessee has not disclosed the interest of the trustees and associated entitles in the activities of the trust. Thus, it appears that no charitable activities meriting registration under section 12AA are being carried out by the assessee-trust. For these reasons, the application for registration of the trust is rejected." 3. The learned counsel for the assessee Shri O.P. Sapra submitted that the observations of the learned Commissioner are misplaced. The charity is not done by Smile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held by the Hon ble Gujarat High Court in the case of CIT v. Gujarat Maritime Board [2007] 289 ITR 139. He, accordingly, pleaded that since the assessee is registered as a charitable trust for charitable purposes as defined in section 2( 15 ) of the Act and the activities are genuine, it is entitled to registration under section 12A of the Act. 4. The learned DR Shri M.L. Meena, on the other hand, relied upon the observations of the learned CIT(A). He also relied upon the decision of Kerala High Court in the case of Self Employers Service Society v. CIT [2001] 247 ITR 18. 5. We have considered the relevant facts, arguments advanced and the decisions cited. The objects for which the assessee trust is established are "Charitab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me and grant of exemption under sections 11 and 12 of the Act. However, this observation is premature while considering only application for registration under section 12A of the Act. Hon ble Allahabad High Court which is a jurisdictional High Court in the case of Red Rose School ( supra ) held "Section 12AA does not speak anywhere that the CIT, while considering the application for registration, shall also see that the income derived by the trust or the institution is either not being spent for charitable purpose or such institution is earning profit. CIT was not justified in refusing registration under section 12AA to assessee educational society and Tribunal was justified in granting the same." Similar view has been taken by ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
