TMI Blog2017 (12) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... allow the appeal of the assessee. Since we have allowed the appeal of the assessee and granted the Registration u/s12AA we consider it is not necessary to adjudicate alternate claim of the assessee. Accordingly we set aside the order of the Ld.CIT and grant registration to the society u/s 12AA of I.T.Act. - Decided in favour of assessee. - I.T.A. No. 512/Viz/2016 - - - Dated:- 20-12-2017 - Shri V. Durga Rao, Judicial Member And Shri D. S. Sunder Singh, Accountant Member Appellant by : Shri G. V. N. Hari, AR Respondent by : Smt V. Madhu Vani, DR ORDER Per D. S. Sunder Singh, Accountant Member This appeal is filed by the assessee against the against the order of Commissioner of Income-Tax (Exemptions) [CIT] u/s 12AA(1)(b) of income tax for rejection of application in Form No.10A dt. 18.03.2016 seeking registration u/s 12AA of I.T.Act. vide order in F.No.CIT(E)/83(3)/12A/2015-16 dated 30.09.2016. 2. The assessee filed application in Form No.10A seeking registration u/s 12AA of IT Act and the Ld.CIT called for information by issuing notice and from the information furnished by the assessee, the Ld.CIT observed that the objective clause (a) of amended MoA re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o communicate to any such association such information as may be likely to forward the objects of this Samaj and benefit the members of this Samaj. (f) To collect subscriptions or donations and to accept contributions and also to subscribe or make donations for and to do charitable deeds and to assist and finance deserving poor students and other needy. (g) To run, manage maintain Institutions viz Creche, Nursery, School, College, Hospital, Hostel Guest house, Housing society, Musical School Auditorium, Embroidery, Stitching Sewing class, Cottage industries. Tourism Promotion Centre, Credit Society and any other social welfare activity in accordance with the objects of the Samaj. (h) To accept donations for specific or general purpose and either in cash or in kind. (i) To administer welfare schemes viz provident fund, gratuity, group insurance and other schemes and to offer appropriate assistance to the employees and members of the Samaj. (j) To make proper arrangements for the attainment of the objects of the Samaj and to borrow funds in tune with the need of the circumstances. (k) To do such acts as may be found necessary in the interests ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly weaker persons, to help during natural or other calamities, to serve humans and animals etc. 8. Thus, very premise for the Commissioner to come to the conclusion that the objects of the trust were confined for the benefit of a religious community, is incorrect. Thereafter to suggest that the activities were carried out only for such purposes would be entering in the realm of granting exemptions in terms of Section 13 of the Act, which would be the task of the Assessing Officer to be undertaken at the time of assessment on the basis of material that may be brought on record. 3.2. The Ld.AR further argued that at the stage of granting registration, there is no application of section 13(1)(b) and section 13(1)(b) applies at the stage assessment, only when there is claim u/s 11 and 12. The Ld.AR further submitted that the Ld.CIT has to consider the entire objects while granting registration. 4. The second proposition submitted by the Ld.AR that the society in this case is registered under Societies Act on 21.02.1957 and granted exemption u/s 15B akin to section 80G of I.T.Act, 1961 on 06.04.1962 and the amendment to proviso of section 13(1)(b) has no application to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or make donations for and to do charitable deeds and to assist and finance deserving poor students and other needy. (g) To run, manage maintain Institutions Viz Creche, Nursery, School, College, Hospital, Hostel Guest house, Housing society, Musical School Auditorium, Embroidery, Stitching Sewing class, Cottage industries. Tourism Promotion Centre, Credit Society and any other social welfare activity in accordance with the objects of the Samaj. (h) To accept donations for specific or general purpose and either in cash or in kind. (i) To administer welfare schemes viz provident fund, gratuity, group insurance and other schemes and to offer appropriate assistance to the employees and members of the Samaj. (j) To make proper arrangements for the attainment of the objects of the Samaj and to borrow funds in tune with the need of the circumstances. (k) To do such acts as may be found necessary in the interests and for the purpose of Samaj and its members. 6.1. The society is incorporated not only for the purpose of Gujarati Community, but also for other public charitable purposes which includes general public of Vijayawada and the society is als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 13. In the instant case, it being established that the respondent-trust is a public charitable and religious trust eligible for claiming exemption under section 11, it becomes relevant to test it on the anvil of Section 13. From a reading of the above, it becomes clear that the application of section 13(1)(b) would only arrive at a stage when an application for exemption is made. At the time of registration of the trust all that is required to be seen is whether the object and purpose of the formation of the trust, is for a charitable purpose. In view of the above, we are of the opinion that the tribunal rightly came to the conclusion that at the stage of grant of the registration under Sections 12A and 12AA, the provisions of Section 13(1)(b) would not apply. The questions are, therefore, answered in favour of the assessee and against the department. 6.2. In the instant case the Trust had large number of other objects for the benefit of general public apart from objects for benefit of a Guajarati community. Taking into consideration of other objects we hold that this is fit case for grating registration 12AA and the case is squarely covered by the case laws ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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