TMI Blog2020 (12) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... stration u/s.12A of the Act to the assessee society, it is ample clear that the assessee society was denied registration as application for grant of registration u/s.12A(a) was rejected Assessee could not show any change in the objects of the society, any change in the source of establishment of the society and also could not controvert that the activities of the society are still being controlled by the head office located at abroad in Australia. We also clearly observed that issue is covered by the decision of the Tribunal dated 13.6.2014 (supra) in favour of the revenue. Therefore, we have no alternative but to uphold the order of the ld CIT(E) denying registration u/s.12A of the Act. Appeal of the assessee society is dismissed. - ITA No.305/CTK/2015 - - - Dated:- 10-12-2020 - Shri Chandra Mohan Garg, Judicial Member And Laxmi Prasad Sahu, Accountant Member For the Assessee : Shri J.M.Patnaik, AR For the Revenue : Shri M.K. Gautam, CIT DR ORDER PER C.M.GARG, JM This is an appeal filed by the assessee against the order of the CIT(E), Hyderabad u/s.12A(a) of the Income Tax Act, 1961. 2. The facts in brief are that the assessee is a missionary so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety has been established and also registered abroad under the said Act The Religious Educational and Charitable Institution Act of 1861 . He noted that since the trust is registered in Australia and not in India, having regard to the provisions of section 11(1) r.w.s 12A(a) of the Income tax Act, 1961 and read with Rule 17A of the income tax Rules, 1962, the society is not eligible for registration u./s.12A(a) of the Act. 6. It was in this backdrop that the ld CIT (E) refused to grant registration u/s.12A(a) of the Act to the assessee society and consequently, approval u/s.80G of the Act. 7. At the time of hearing, ld A.R. of the assessee society submitted that though the assessee trust is registered in Australia but the area of operation is in the Mayurbhanj district of Odisha and also nearby districts. He submitted that the assessee society is created for rehabilitation of the persons affected by leprosy and downtrodden in a charitable and holistic purposes. He submitted that the CIT(E) be directed to grant registration u/s.12A(a) of the Act. 8. Replying to above, ld CIT DR submitted that supported the order of the ld CIT(E). He submitted that the society is register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant society is governed not in Indian Regulation and is subject to regulations under that of foreign Act in Australia, therefore, it is not permissible to grant necessary certificate sought u./s.12A(a) of the Act. From the copy of previous order dated 27.9.2013 passed by ld CIT (E) denying registration u/s.12A of the Act to the assessee society, it is ample clear that the assessee society was denied registration as application for grant of registration u/s.12A(a) was rejected. From the copy of order of the Tribunal dated 13.6.2014 (supra), we observe that the appeal of the society was dismissed with the following observations and findings: 2. The brief facts of the ease are that am application for registration u/s 12AA of the Income Tax Act was filed with CIT by the Assessee on 203.2013 alongwith the documents prescribed under Rule 17 of the Income Tax Rules, 1962. The: Assessee is incorporated in the State of Queensland, Australia and registered with the Australian Charities and Not-profit-Commission. The CIT noted that as per the document filed by the Assessee, the Assessee is stated to have been established on 21.1.1926. The Constitution as. amended on 30.4.2012, contains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rehabilitation of the persons affected by leprosy and downtrodden in a charitable and holistic manner in Mayurbhanj and neighboring districts in India The assessee is thus established for charitable purposes. The audited report as well as audited income and expenditure account was also filed and it was contended that the Assessee is a genuine charitable trust. C1T was not correct in law in. rejecting the registration. 2.2 The Id, DR. on the other hand, relied on the order of GIT and vehemently contended that before CIT, the Society has submitted different Constitution, which talks that, the Assessee came into existence in the year 1926 by the Religious Educational and Charitable Act, 1861 of State of Queensland, Australia,. The objects stated-in the constitution before the CUT are different from the objects in the Constitution, filed before the Bench. This Constitution does not talk of date of registration and referred to the compliance of Sec. 23 of the Income Tax Assessment Act, 1936, which is not applicable in India. For the purpose of registration u/s.12A, the Society Trust has to be registered under the Indian Act. A trust/society which is registered outside India cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be able to satisfy itself about the genuineness of the activities of trust/institution as in that case it will always take shelter of the Act and Rules by which it is governed. Therefore, for getting registration u/s.12AA, the Trust has to be governed by the Indian Income tax Act and the necessary provision must be in the bye-laws. The Constitution, as submitted before us, even does not contain any certificate of registration. Even the name and address of the office bearers are not in existence. If the identity of trust/institution cannot be established, the genuineness of the activities of such trust/institution, in our opinion, cannot be established. The assessee claims that it is created for charitable purposes i.e. advancement of any other objects of general public utility. We noted that in view of the proviso to Sec, 2(15), which was inserted w.e.f. 1.4.2009, the assessee cannot be said to have been engaged in charitable purposes if the assessee is involved in carrying on any activity in the nature of trade, commerce or business or any activity of running any service in relation to any trade, commerce or business. From the income and expenditure account, a copy of which w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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