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TMI Blog2013 (9) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessee under section 12A, against which the assessee is in the present appeal raising the following grounds. "1. That the order of the learned Commissioner of Income-tax, Sambalpur, dated February 16, 2012, in file No. 36 of 2010-11 under section 12A of the Income-tax Act, 1961, rejecting the application of the appellant-trust, for grant of registration under section 12A of the Income-tax Act in utter disobedience of the order of the hon'ble Income-tax Appellate Tribunal in I. T. A. No. 144/CTK/2011, dated September 12, 2011 is illegal, uncalled for and hence liable to be quashed. 2. That the application of the appellant-trust should have been allowed in view of the settled law that the scope of enquiry of the Commissioner of Income-tax is limited about the charitable object of the trust and genuineness of the activities which the hon'ble Tribunal, after due examination of the fact and circumstances of the case and being the highest fact-finding authority, had already concluded and observed that it is a genuine goshala trust working for the weak and helpless cows which is of a charitable nature. They have also further opined and held that the activities of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts the case of the appellant. 9. That the observation of the learned Commissioner that maintenance of livestock and goshala does not come within the meaning of charitable work is not correct in view of decisions noted by the honourable Tribunal in favour of the assessee. 10. That there are also other objects like assistance to the needy victims during natural calamities/erection, construction, maintenance of Dharmasala, worship centre, drinking water centre, etc., which are very much charitable in nature." Learned counsel for the assessee submitted that the assessee is in second round in appeal before the Tribunal against the order of the learned Commissioner of Income-tax dated February 16, 2012, as he has again rejected the application of the appellant in utter disobedience of the direction of the Tribunal in I. T. A. No. 144/CTK/2011 dated September 12, 2011, wherein the Tribunal after considering all the facts and circumstances of the case was of the view that the assessee-trust ought to be granted registration under section 12A and for that purpose remanded the matter to the file of the learned Commissioner of Income-tax. He further submitted that the only issue in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of any other reason for refusing registration under section 12A of the Act. Learned counsel for the assessee submitted that the learned Commissioner of Income-tax did not dispute the activities of the "goshala" as is evident from his observation in page 3 towards the middle of his impugned order dated February 16, 2012 when he observed-". . . Similarly expenditure on account of maintenance and upkeep of "Goshala" and livestock only. Learned counsel for the assessee submitted that "Goshala" is a charitable institution according to "The Orissa Goshala Act, 1961", established for the purpose of keeping breeding, rearing and maintaining cattle or for the purpose of reception, protection and treatment of infirm, aged or diseased cattle and includes a pinjrapole where such cattle are kept. The learned Commissioner of Income-tax's doubt has no basis and he is not justified in saying that there is no material before him to be satisfied of the genuineness of the activities of the trust. Because there is no dispute regarding upkeep of "Goshala" and "livestock", which maintenance itself is charitable in nature within the meaning of section 2(15) of the Income-tax Act, 1961. He further con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, 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. Profit earning or misuse of the income derived by charitable institution from its charitable activities may be a ground for refusing exemption only with respect to that part of the income but cannot be taken to be a synonym to the genuineness of the activities of the trust or the institution. While considering the registration under section 12AA, the scope of enquiry of the Commissioner would be limited to the aforesaid extent only." In view of the above, learned counsel for the assessee sought for setting aside the impugned order with a direction to the learned Commissioner of Income-tax to grant registration under section 12A. The learned Departmental representative opposed the contention of learned counsel for the assessee by indicating the sole proprietorship concern of the trustee, Smt. Manjudevi Bagadia, has been taken lock, stock and barrel by the trust when the trust chose to amend its trust deed by indicating that the loan on which the live stock existed has been leased out for a period of five years t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 (copy placed on record), we find that the assessee is a trust having objects of the trust (a) to maintain develop the existing 'Goshala' and 'Live Stocks' received from the settler and to do all such acts and things for the development and maintenance of animal welfare, other Goshala, etc. (b) to grant relief and assistance to the needy victims during natural calamities such as famine, earthquake, tsunami, flood, fire, pestilence, avalanche, etc., and to give donations and other assistance to institutions, establishments/persons engaged in such relief work. (c) to erect, construct, develop, maintain place(s) of kalyan mandap, Hindu worship centres, dharamsala, drinking water points and also to organize various spiritual and cultural functions. (d) to do such other things or deed that are incidental to, in attainment of the objects of the trust. It is also further mentioned that the beneficiaries of the trust will be the public in general, without any discrimination of caste, creed, community or religion. The learned authorised representative for the assessee contended that the 100 milch cows are the part of the trust property, which will help the trust i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to be granted registration under section 12A. However, on the basis of submissions of the learned authorised representative of the assessee we restore the issue to the learned Commissioner of Income-tax for granting the registration under section 12A in accordance with law after giving proper opportunity of being heard to the assessee-trust." On this backdrop and considering the facts and circumstances of the case, we are of the considered view that the Tribunal, vide their order dated September 12, 2011 had noted all the facts when it was the endeavour of the learned Commissioner of Income-tax to limit himself to satisfy about the charitable nature of the objects of the trust and find out the genuineness of the activities of the trust. The undisputed facts are that the learned Commissioner of Income-tax in the second innings has reiterated that the activities carried out are the same as were before and therefore, there was violation of the provisions of section 11 to grant registration under section 12AA. It has been held by the various judicial pronouncements as submitted by learned counsel for the assessee that charitable activities may have bent up profit making activities b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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