Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Alipore Vivekananda Senior Citizens Society Versus C.I.T. (Exemption) , Kolkata

2017 (11) TMI 1006 - ITAT KOLKATA

Denial of registration u/s 12 AA - Application for grant of approval of the assessee u/s 80G rejected - proof of charitable activities - whether trust or institution which is yet to start any charitable activity cannot be granted registration u/s 12AA? - Held that:- At the time of grant of registration it is not proper to insist on charitable activity having been already carried out by the society or charitable institution seeking registration. See D.I.T. vs Foundation of Opthalmic & Optometry R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessee, the approval u/s.80G of the Act is also directed to be granted to the assessee. - Decided in favour of assessee. - I.T.A Nos.1340&1341/Kol/2017 - Dated:- 17-11-2017 - Sri N. V. Vasudevan, JM And Shri Waseem Ahmed, AM For the Appellant : Shri S.M.Surana, AR For the Respondent : Shri G.Mallikarjuna, CIT(DR) ORDER Per N. V. Vasudevan, JM ITA No.1340/Kol/2017 is an appeal filed by the Assessee against the order dated.25.05.2017 of. C.I.T (Exemption), Kolkata rejecting the application for g .....

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 the paper book and is dated 29.09.2016. The objects for which the assessee was established as per the Memorandum of Association of the Society are as follows :- a) To acquire, establish, start, aid, run, maintain or manage educational institutes, libraries for the benefit of the public. b) To arrange and organise lectures, debates, discussions, seminars & excursions for the diffusion of knowledge. c) To publish or cause to be published useful literatures, magazines, etc. without profit mot .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

among the illiterate women and men by organising awareness camps from time to time'. j) To organise an ambulance for free rendering service to the needy patients. k) To establish and maintain basic and adult education centre to remove the illiteracy. 1) To arrange and organise dead body carrier for free rendering service to help the needy people of the society. m) To open charitable dispensaries, first aid centre, blood donation camp from time to time and to generate awareness amongst peopl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eedy people of the society without profit motive. r) To arrange for medical treatment to the Deaf & Dumb and handicapped persons by rendering qualified doctors, medicines and other allied articles free of cost. s) To help the people in marriage, funeral and cremation of the dead. t) To help to organise self-help group based programme for augmentation of the livelihood opportunities of the people at the grass root level as being beneficial to the public or to a section of public. 3. The asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r other charitable institution applying for grant of registration. As far as grant of approval u/s 80G of the Act is concerned one of the requirements of Rule 11AA of the Rules is that it should have been granted registration u/s 12AA of the Act. 4. The CIT(Exemption), Kolkata on going through the application for grant of registration u/s 12AA of the Act noticed that after getting the registration under the Societies Registration Act on 29.09.2016, the assessee started its charitable activities .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

m of donation by them to the Assessee trust. According to the assessee also the payments made by M/S.Bimla Devi Bhutoria Charitable Trust were accounted by it as donations. The Assessee did not open a Bank Account till 26.12.2016 and therefore the Assessee requested donations be made by payments directly for meeting expenses of the Assessee trust. It was the case of the assessee that it had opened a bank account only on 26.12.2016 and prior to this period they were making a request to the donors .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be double benefit for the same expenditure. According to the CIT(Exemption) no expenditure was booked in the profit and loss account but the purchase of spectacles was claimed as application of income for charitable purpose. Another aspect noticed by CIT(E) was that there were no employees who are working for the assesee but salary and bonus have been claimed as expenses and application of income by the assessee. 5. Though the CIT(E) has made the observations set out in para-4 above, the main re .....

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 High Court that society claiming registration u/s 12AA of the Act should have done some charitable work. The CIT(E) after referring to the aforesaid decision held as follows :- Therefore, it is abundantly clear that a trust or institution which is yet to start any activities or fails to furnish substantial proof cannot be granted registration u/s 12AA(1). In course of proceeding I was driven to the conclusion that in absence of proof of activity, registration u/s 12AA cannot be granted. 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

IT(E) that the only reason given by him for rejecting the assessee s application for grant of registration u/s 12AA of the Act is that the trust or institution which is yet to start any charitable activity cannot be granted registration u/s 12AA of the Act on the basis of its objects which are charitable in nature. It is thus clear that the CIT(E) was satisfied with the objects of the assessee which were charitable in nature. Though the CIT(E) has made reference to the assessee s action of havin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation. This view has been taken by the Hon ble Delhi High Court in the case of D.I.T. vs Foundation of Opthalmic & Optometry Research Foundation Centre in IT Appeal No.1687 of 2010 dated 16.08.2012 and the decision of Hon ble Allahabad High Court in the case of CIT(E) vs M/s. S.M.Charitable Trust in IT Appeal No.63 of 2016 dated 01.08.2017. In this case the Hon ble Allahabad High Court after making a reference to the decision of Kerala High Court in the case of Self Employers Services Societ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

from a judgment of the Income Tax Appellate Tribunal, Lucknow Bench dated 7 August 2013. The assessee had challenged before the Tribunal an order of the Commissioner of Income-tax-ll. Lucknow dated 6 September 2012 declining to grant registration under Section 12AA of the Income-tax Act, 1961. The only ground on which the CIT rejected the application for registration was that though the society was established in August 2011 with a dominant object of imparting higher medical education by establi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nch has held as follows: The preponderance of the judicial opinion of all the High Courts including this court is that at the time of registration under section 12AA of the Income-tax Act, which is necessary for claiming exemption under sections 11 and 12 of the Act, the Commissioner of Income-tax is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust set up to achieve its objects of establishing educational institution, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stricted to the genuineness of the objects and not the activities unless such activities have commenced. The trust or society cannot claim exemption, unless it is registered under section 12AA of the Act and thus at that such initial stage the test of the genuineness of the activity cannot be a ground on which the registration may be refused. 2. The ITAT has held that in view of the judgment of the Division Bench of this Court in Hardayal Charitable & Educational Trust case (supra), the orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

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

Go to Mobile Version