New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (3) TMI 249 - KARNATAKA HIGH COURT

2016 (3) TMI 249 - KARNATAKA HIGH COURT - TMI - Registration of a trust under section 12AA(3) cancelled - Held that:- The assessee imparts education to both employed or to be employed, skilled and unskilled workers and the Tribunal further observed that there are other objects which can be said that 'any other object of the public utility'. Commissioner of Income Tax vs Gujarat Martitme Board [2007 (12) TMI 7 - SUPREME COURT OF INDIA]

Tribunal was correct in holding that the trust is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

For the Respondent : Smt Jinita Chatterjee, Adv. for Mr Parthasarathi, Adv JUDGMENT The present appeal has been preferred by the appellant-revenue by raising the following substantial question of law: "1. Whether on the facts and in circumstances of the case, the Tribunal is right in law in holding that the assessee is imparting education within the meaning of Section 2(15) of the IT Act, when the trust is formed to train the unskilled employees and workers of the settler companies and the .....

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 engaged by the settlers and not for the purpose of general public at large?" 2. We have heard Mr.E I Sanmathi, learned Counsel appearing for the appellant-revenue and Miss.Jinita Chatterjee for Mr.S Parthasarathi, learned Counsel appearing for the respondent-assessee. 3. We may record that the Tribunal in the impugned order while considering the contention raised by both the sides at para 4.2.1. to 4.2.5., has observed thus: "4.2.1. We have heard both parties and perused and consider .....

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 is in respect of these objects and activities that the assessee trust filed its application for registration under section 12AA of the Act. 4.2.2 For the purpose of registration under section 12aa of the Act, the scope of enquiry of the learned DIT, as laid by the Hon'ble Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda Charitable trust (Supra) is limited to calling for such documents or information from the assessee to satisfy himself about the genuineness of the objects 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

rse finding with regard to either the objects of the trust being not genuine or that its activities were not in accordance with its objects but has proceeded further to disallow the assessee's Registration under section 12AA of the Act. 4.2.3 The learned DIT was of the view that the assessee trust is not for charitable purpose as per section 2(15) of the Act but formed only to cater to the needs of the settlers of the trust, as the benefit of the vocational training was only to their employe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

under section 12AA of the Act. 4.2.4 As discussed in the pre-paras 4.2.1 to 4.2.3 (supra), we find that the learned DIT is of the view that the assessee's activities would not fall under education or advancement of any other object of public activity' as per the provisions of section 2(15) of the Act. However, at para 3.5 of his order, he contends himself: "… I am of the considered view that there is no normal schooling in the applicant's case and its activities or train .....

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 not for 'advancement of object of general public utility.' On the other hand, he concludes that the training is imparted to unskilled workers(supra). This reference, obviously is not to the training of permanent workers in the mining activities; who are also to be trained by the assessee trust, but to the unskilled and unemployed others who are to benefit by future employment, from such training rendered to them. In coming to this view, we draw support from the decision of the Hon' .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent of any object of benefit to the public or a section of the public as distinguished from benefit to an individual or a group of individuals would be a charitable purpose CIT vs. Ahmedabad Rana Caste Association [1983] 140 ITR 1 (SC). The said expression would prima facie include all objects which promote the welfare of the general public. It cannot be said that a purpose would cease to be charitable even if public welfare is intended to be served. If the primary purpose and the predominant ob .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ble but which is ancillary or incidental to the dominant purpose, would not prevent the institution from being a valid charity-Addl. CIT vs Surat Art Silk Cloth Mfrs. Association [1980] 121 ITR 1 (SC). 11. The present case in our view is squarely covered by the judgment of this Court in the case of CIT vs. Andhra Pradesh State Road Transport Corpn. [1986] 159 ITR 1 in which it has been held that since the Corporation was established for the purpose of providing efficient transport system, having .....

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 charitable purposes as laid out under section 2(15) of the Act as there is no profit motive involved. In our view, the learned DIT has not followed or applied his mind to the scope of enquiry to be made when considering the assessee's application for registration under section 12AA of the Act as laid down by the Hon'ble Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda(supra). Further, we are of the view that, in the factual matrix of the case, the finding of the learne .....

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