Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (3) TMI 183 - KARNATAKA HIGH COURT

2016 (3) TMI 183 - KARNATAKA HIGH COURT - [2016] 382 ITR 528 - Denial of registration under Section 12A and recognition under Section 80G - Held that:- To ascertain the true nature/purpose of the Trust, the objectives have to be considered as a whole, not in isolation. The Tribunal cannot pick and choose certain objectives ignoring the main objectives. It appears that the respondent and the Tribunal are influenced by the preamble in the Trust Deed. Preamble cannot control the main objectives 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

s in a Country or State. If it is distinguished from a specified individual and if it is to the benefit of section of the public, it has to be construed as charitable purpose. As such, the Order passed by the Tribunal is unsustainable. The matter deserves to be reconsidered by the Tribunal regarding the purpose and objectives of the Trust in the light of the Trust Deed and any other documents to be furnished by the Assessee. - ITA Nos. 7-8/2010 - Dated:- 23-2-2016 - Jayant Patel And S. Sujatha, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing that the trust was only for the benefit of milk producers societies and more of mutual concern and not a charitable entity by upholding the denial of registration under Section 12A and recognition under Section 80G of the Act?. ii) Assuming that the Appellant was constituted for the benefit of milk producers societies, can it be said to be a mutual concern and not charitable as held by the Tribunal without appreciating the ratio laid down by the Supreme Court in Ahmedabad Rana Caste Associat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ration under Section 12A of the Income Tax Act, 1961, ['the Act', for short] and also for grant of recognition under Section 80G[5][vi] of the Act. The respondent rejected the application holding that the Trust exists not for general public or a section of general public, but for the benefit of its Members. Aggrieved by the Order of the respondent, the appellant preferred appeals before the Tribunal. The Tribunal rejecting the contentions of the appellant dismissed the appeals holding th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Trust at paragraph 7.1 of the Judgment which reads as under: "I) The benefit of the project or scheme shall flow to the public in general or to individuals belong to the economically weaker sections of the society; II) The applicant has the necessary expertise, personnel and other facilities for efficient implementation of the project or scheme; a) Construction and maintenance of drinking water projects in rural areas and in urban slums, including installation of pump-sets, digging o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f sports; g) Establishment and running of educational institutions in rural areas, exclusively for and children up to 12 years of age; h) Establishment and running of hospitals and medical facilities in rural areas, exclusive women and children up to 12 years of age; i) Encouraging the production of bacteria induced fertilizers; j) Construction of hostel accommodation for woman or handicapped individuals or individual who are of the age of 65 years or more; k) Establishment and running of Instit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d medical services (prevention decease including immunization) to the members of the Milk Producers societies and their family members as also to the employees of the societies. (3) To establish educational institutions and hospitals, to promote education and safeguard the health of the mild producers and their families and also the employees of the societies. (4) To open shops to sell stationary items and from the income derived out of the business will be utilized for the activities of the tru .....

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 (husband/wife) of the deceased in the event of death of any milk producer /member. (9) in the event of death of the cattle of the milk producers/members by consuming poison/accident /thunder/fire to provide appropriate financial compensation through trust by treating the same as a special circumstance." 6. The application for registration under Section 12A of the Act is rejected by the respondent and confirmed by the Tribunal, placing reliance on the other objectives of the Trust cited su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

perative and their families/dependant children." 7. To ascertain the true nature/purpose of the Trust, the objectives have to be considered as a whole, not in isolation. The Tribunal cannot pick and choose certain objectives ignoring the main objectives. It appears that the respondent and the Tribunal are influenced by the preamble in the Trust Deed. Preamble cannot control the main objectives of the Trust. 8. The Appellant-Trust would have started with an intention to safeguard the interes .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

charitable purpose or not. 9. While considering the case of the Trust created for the benefit of Rana Caste or community of City of Ahmedabad, the Apex Court in 'AHMEDABAD RANA CASTE ASSOCIATION Vs. COMMISSIONER OF INCOME TAX' reported in [1971] 82 ITR 0704 has held thus: "It is well settled by now, and the High Court also has rightly taken that view, that an object beneficial to a section of the public is an object of general public utility. To serve a charitable purpose, it is no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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