TMI Blog2015 (9) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... rried on by the assessee. Since the assessee claims that they have done little activity about the charity in the first year of its establishment, this Tribunal is of the considered opinion that it is not a case that no charitable activity was carried on. However, as observed earlier, in the absence of the activity report, this Tribunal is unable to appreciate the activities carried on by the assessee. In view of the above, this Tribunal is of the considered opinion that the matter needs to be re-examined by the Commissioner in the light of the judgment of the Kerala High Court in the case of Self Employees Service Society (2000 (9) TMI 47 - KERALA High Court ). It is made clear that the trust cannot be used as a vehicle / instrument for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o help and encourage deserving students and to provide monetary aid to students for pursuing higher education. Another object of the assessee trust is to extend help to the victims of natural calamities, communal riots, religious outbursts, terrorist activities, sectarian in-fights and unforeseen circumstances. However, the Commissioner of Incometax rejected the application of the assessee for registration u/s 12AA on the ground that charitable activity carried on by the assessee trust is very limited and funds available is seemingly less. According to the ld.representative, the trust itself was formed on 06-07-2013. The assessee trust has spent around ₹ 1,16,977 during the first seven months of its service. 3. Placing reliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the trust commencement of activity of the trust is not necessary. Therefore, according to the ld.representative, the assessee is entitled for registration. 4. On the contrary, Shri M Anil Kumar, the ld.DR submitted that the assessee trust was established on 06-07-2013. On examination of the activity report said to be filed by the assessee, the Commissioner found that the assessee has undertaken very limited activities and funds available with the assessee is also very less. The assessee has no idea with regard to charitable activity to be undertaken in future. In the absence of any clear-cut activity undertaken by the assessee, according to the ld.DR, the Commissioner has rightly rejected the registration u/s 12AA of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA of the Act or not? The ld.representative placed his reliance on various judgment of the High Courts and Tribunals including the judgment of Karnataka High Court in Meenakshi Amma Endowment Trust (supra); Madras High Court in Seervi Samaj Tambaram Trust (supra). The judgment cited by the ld.representative for the assessee clearly says that the activity of the trust is not a criterion for grant of registration. What is to be examined is the object of the trust for which it was formed. However, we find that the Kerala High Court in Self Employees Service Society vs CIT (2001) 247 ITR 18 (Ker) had an occasion to consider the provisions of section 12AA of the Act. A similar contention was raised before the Kerala High Court that in order to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xhibit P5 cannot be termed as illegal or arbitrary. But the learned single judge has given an opportunity to the society to file a fresh application when they actually start doing charitable work and the Commissioner has been directed to consider such application on the merits untrammeled by the view taken in exhibit P5. According to us, no better relief could be granted to the society in this case. 7. In view of the judgment of the jurisdictional High Court, this Tribunal is of the considered opinion that the judgment of the Karnataka High Court in the case of Meenakshi Amma Endowment Trust (supra) and Seervi Samaj Tambaram Trust (supra) may not be relevant for the purpose of this case. This Tribunal is of the considered opinion that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
