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Sant Ishwar Shiksha Samiti Versus The CIT, (Exemption) , Chandigarh

2017 (10) TMI 524 - ITAT AMRITSAR

Registration u/s 12AA denied - no activity was carried out by a trust - Held that:- Even otherwise if no activity was carried out by a trust or institution, still registration can be granted by the CIT(E) and even otherwise it is not the case of the Revenue that at the time of consideration of application of the Assessee, the assessee has carried out many activities and their genuineness were in doubt but in the instant case grievance of the CIT(E) is only that there was no activity carried out .....

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iar facts and circumstances and situation, in our considered opinion the Ld. CIT(A) was under obligation to consider the objects of the trust which are available in the trust deed itself. Even otherwise, the concerned Revenue Authority was empowered to withdraw the registration already granted or cancel the said registration if he came across that factually trust has not conducted any charitable activities. - Hence, we direct the Ld. CIT(E) to grant the registration u/s 12A of the Act to the .....

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DR) ORDER PER N. K. CHOUDHRY: Both the Appeals are identical and issues involved are also almost similar, therefore the same have been taken for adjudication by this common order. For the sake of convenience and brevity, facts and grounds raised in Appeal no. I.T.A. Nos.670 (Asr)/2015 has been taken in to consideration. The Appeal under consideration, arising out from the order passed U/s 12AA of the I.T. Act, 1961 by the CIT(Exemption), Chandigarh, feeling aggrieved against the rejection of its .....

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e registration on the ground that the assessee trust has not carried out any activity. 3. That having regard to the facts and circumstances of the case, the Id CIT, Exemption Chandigarh has erred both in law and on facts of the case by denying the registration on the ground that the assessee trust has initially decided to construct school & meditation hall at Asar Doda but later purchased land for school at Niabhat, Nagrota. 4. That having regard to the facts and circumstances of the case, t .....

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/s 12AA of the Act was filed by the by the applicant trust on 15.05.2015 as the aforesaid trust was founded by Sh. Kapil Khanna, a businessman, on 12.03.2015 as a public charitable trust. The main objects of the trust have been claimed to be engaged in the educational, social, literature and research oriented work, and uplifting of the unprivileged and economically & socially weaker sections of the society. On consideration of application for registration, the Ld. CIT(E) offered the opportun .....

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vities and finally rejected the registration on three limbs first that the assessee has not carried out any charitable activity, secondly has only entered into agreement to purchase a piece of land in the name of activity and thirdly, in the trust deed having some restrictive clauses which rendered working of trust as capable of being controlled by a single family and contents of objects of the trust do not find corroboration in shape of any positive action taken towards either education or any .....

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due course and time or near future and the motto of objects of the assessee is to spread the educational, social, literature and research oriented work, and uplifting of the unprivileged and economically & socially weaker sections of the society and for that assessee trust has already acquired the land which had been shown to the Ld. CIT(E) and thereafter, the construction have been started and the building is under advance stage of the completion, therefore, the assessee is right to get reg .....

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e through with the facts and circumstances of the case and also rival submissions of the parties, relevant dates are very much material in the instant case. The trust was established and registered only on 12th March, 2015 and thereafter, application for registration u/s 12A was filed on 29.04.2015 and main objects of the trust are establishment of educational institution and/or maintenance of educational institution,meditation and prayer halls, granting of scholarship and financial assistance t .....

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the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he - (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the .....

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ies of the trust or institution can call for such documents or information from the trust or institution as he thinks necessary and also empowered to make such enquiry as he may deem fit necessary in this behalf. Second Clause deals with that after satisfying himself about the object of the trust or institution and the genuineness of the activities, he shall pass order in writing either to register or refusing to register the trust or institutions. Let us to consider judicial verdicts on the iss .....

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held that While considering the application u/s 12AA, the Commissioner has to satisfy himself about the objectives of the trust and genuineness of its activities and for such purposes, he has the power to call for such documents or information from the trust as he think are necessary. However, this does not mean that if the activities of the trust have not commenced the Commissioner has authority to reject its application for registration on the ground that the Trust has failed to convince him .....

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n the process of its initiation. Where a trust, set up to achieve its objects of enabling educational institution, is in the process of establishing such institution and receives donations, the registration u/s 12AA cannot be refused, on the ground that the Trust has not yet commenced the charitable or religious activity . Further, Co-ordination Bench of ITAT, Amritsar in the case of Ek Umeed Welfare Society, Fazika Vs. Assessee in ITA No.615(Asr)/2013 Directed to grant registration to the socie .....

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, Nagrota Third reason that the activities of assessee trust are controlled by one family. The reasons given by the Ld. CIT(E ) does not sound good because, one side reasoned that no activity has been carried out by the Assesse Trust, on the other hand has doubted the intents of the objects and further observation that initially the Assessee wanted to construct school & meditation hall at Asar Doda but later purchased land for school at Niabhat, Nagrota, in our view, the trust that time was .....

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e objects of the trust do not find corroboration in the shape of any positive action taken towards either education or any of the other objects enunciated in the trust deed, as observed by the ld.CIT (E ). Third reason that the activities of assessee trust are controlled by one family is only an apprehension of the Ld. CIT (E ), which according to our mind can not base rejection of the registration because the Revenue Authority is at liberty to withdraw and/or to cancel the Registration an any t .....

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derstanding with the Bhartiya Shiksha Samiti, which is involved in the field of imparting formal education having established a number of Primary and Secondary level Schools in different part of Jammu & Kashmir as submitted. Further from the cutting of newspapers, it reflects that inauguration for construction and laying stone for establishment of the School has already been done and as per computation of Income of Asst. Year: 2016-17 it reflects that the assessee trust has received ₹ .....

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8,548/- for medical care at FDR. On perusal of records and judgments, it is clear that at the time of registration u/s 12AA of the Act, the Ld. CIT(E) is required to see the objects of the trust or institutions and genuineness of its activities, however, if we come to the instant case, then it is not disputed that the trust was formed and registered only on 12th March, 2015 thereafter, application for registration u/s 12AA was filed on 15.05.2015 and the impugned order was passed on 30th Nov. 2 .....

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t reading of the aforesaid judgments, it can be safely concluded that even otherwise if no activity was carried out by a trust or institution, still registration can be granted by the CIT(E) and even otherwise it is not the case of the Revenue that at the time of consideration of application of the Assessee, the assessee has carried out many activities and their genuineness were in doubt but in the instant case grievance of the CIT(E) is only that there was no activity carried out by the assesse .....

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stances and situation, in our considered opinion the Ld. CIT(A) was under obligation to consider the objects of the trust which are available in the trust deed itself. Even otherwise, the concerned Revenue Authority was empowered to withdraw the registration already granted or cancel the said registration if he came across that factually trust has not conducted any charitable activities. Although, in the open Court we had shown our inclination to remand the case with direction to the assessee to .....

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