Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Saraswathi Trust Versus The Director of Incometax (Exemptions) , Chennai

2016 (2) TMI 375 - ITAT CHENNAI

Non-granting of registration u/s 12AA - main object of the assessee is to provide resources for advanced education for peoplewho deserve it - Held that:- The purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of ‘charitable purpose’ would be fully satisfied, even if an activity for profit is carried on in the course of the actual carrying out of the primary purpose of the trust or institution. At this stage, it is also pertinen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, such institution can claim exemption u/ss 11 & 12 of the Act if it involves charitable activities.

After complying the requirement of sec. 11 of the Act, if there is any violation either in sec. 11 or 13, profit of such institution would be taxable because some profit has been earned by the institution, registration u/s 12AA cannot be denied so long as provisions of sections 11, 12 & 12 of the Act are complied with. So long as it is established that income of the institution has be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y itself for claiming exemption u/s 11 of the Act. The objects of the trust and its genuineness have to be examined by the DIT(E) while granting registration u/s 12AA of the Act.

In view of the above discussion, the DIT(E) is directed to grant registration u/s 12AA of the Act to the assessee-trust. - Decided in favour of assessee - I.T.A.No.2007/Mds/2015 - Dated:- 8-1-2016 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER For The Appellant : Sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/s 12AA(2) of the Act expired on 31.3.2015, however, in view of the judgment of the jurisdictional High Court in the case of CIT vs Sheela Christian Charitable Trust, 354 ITR 478, the CIT is empowered to pass order even after that date as the date mentioned in 12AA(2) of the Act is only directory and not mandatory. Accordingly, he passed order on 29.6.2015. Regarding granting or registration u/s 12AA of the Act, the DIT(E) was of the opinion that the object clause of the assessee reads as follow .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t skill of every individual and to bring them out prosperously by shaping it. 3. According to the DIT(E), the above clauses permit the assessee to engage in commercial activities which will not be covered under the definition of charitable purpose as per sec. 2(15) of the Act. For this purpose, he relied on the judgment of Kerala High Court in the case of Ideal Publication Trust vs CIT 305 ITR 143, judgment of the Delhi High Court in the case of Daulat Ram Public Trust vs CIT, 244 ITR 514 and al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

terial for students and the assessee has not furnished the details to whom the expenditure was incurred. Accordingly, he rejected the application of the assessee for registration u/s 12AA of the Act. Against this, the assessee is in appeal before us. 4. We have heard both the parties and perused the material on record. The question for consideration is with regard to the scope of enquiry by the DIT(E) u/s 12AA of the Act. With effect from 1.4.1997, the CIT(E)/DIT(E) is empowered to enquire about .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

jects are charitable or not. Now, coming to the case of the assessee, the assessee made an application for registration u/s 12AA of the Act on 8.9.2014. The DIT(E) has to see whether the activities are under the purview of sec. 2(15) of the Act. Sec. 2(15) of the Act reads as follows: "Charitable purpose" includes relief of the poor, education, medical relief, [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n, of the income from such activity:] [Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is [twenty-five lakh rupees] or less in the previous year;]" 5. The object of the assessee-trust as per the trust deed filed before us is as follows: 1. To provide resources for Advanced Education for people who deserve it. 2. To develop Rural Society Economically and socially. 3. To provide resources to enhance the Tec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oor and needy persons in rural areas. 10. To promote Vocational education in rural areas. 11. To do such other acts as are conducive to the attainment of the above objects or any of them. 12.To motivate and facilitate training and education to develop physical, mental and emotional aspect of the rural poor. 13. To be supportive to poor people in building up their own shelter, clothing and their own sanitation facilities. The main object of the assessee is to provide resources for advanced educat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ucation or medical relief, the requirement of the definition of charitable purpose would be fully satisfied, even if an activity for profit is carried on in the course of the actual carrying out of the primary purpose of the trust or institution. At this stage, it is also pertinent to note that the clause not involving carrying any activities of profit were omitted from this definition by the Legislature by Finance Act 1993 with effect from 1st April 1983. Therefore, after such omission, the ele .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version