TMI Blog2023 (8) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... n the judgment of Division Bench in the case of Commissioner of Income Tax Vs. Divine Shiksha Samiti [ 2020 (2) TMI 726 - MADHYA PRADESH HIGH COURT] . Tribunal has rightly come to the conclusion that while considering the application for registration, CIT was supposed to enquire into the nature of the Trust and since there was nothing substantive or serious to doubt the nature of the Trust being charitable, the learned CIT was not justified in rejecting the application for registration on the aforesaid basis. Thus, no substantial question of law arises for consideration in this appeal. - HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI And HON'BLE SHRI JUSTICE PRAKASH CHANDRA GUPTA FOR THE APPELLANT : MS. VEENA MANDLIK - ADVOCATE FOR THE RESPONDENT : SHRI PRADEEP CHOUDHARY, SENIOR ADVOCATE WITH SHRI ANAND PRABHAWALKAR - ADVOCATE JUDGEMENT This appeal has been filed under Section 260(A) of the Income Tax Act, 1961(for short the Act ) by the Commissioner of Income Tax, Ujjain, assailing the order dated 31.05.2004 passed by the Income Tax Appellate Tribunal ( for short the Tribunal/ITAT ), Indore, in ITA No. 97/Ind/2003 whereby the appeal filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , aim or planning for the progress of the Trust. As per Clause No.13, neither the Trustees nor any other person has any personal right over the movable or immovable property of the Trust nor would they be able to use the property of the Trust for their personal benefit but they will have their right on these properties in the capacity of Trustees only. Some amendments in the objects and in the procedures related to Trustees were carried out on 31.10.1989 and the amended Trust deed was got registered on 20.11.2001 under the provisions of Madhya Pradesh Lok Nyas Adhiniyam, 1951. In the said amended Trust deed, a new provision was introduced that all other persons will have also place in the Trust besides the Trustees mainly from the Digmabar Jain Beas Panthi Khandelwal Community. 3. Learned CIT rejected the application for registration on the following grounds:- (i) Deviation from the original Trust deed frustrates the objects and purpose of the original Trust deed dated 26.09.1956 which is impermissible. (ii) During Assessment year 1989-1990, the immovable property of the Trust situated at 25, Abbas Tayyab Ali, No.3, Badanagar,Ward-III was sold to the Trustees and their rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 7. Ms. Veena Mandlik, learned counsel for the revenue, contended that application for registration under Section 12(A)(a) was not filed before the competent authority i.e. CIT but the same was filed before ACIT(investigation), Ujjain. The Trustees and their relatives were benefited by illegal profit which amounts to violation of Section 13(1)(c) (ii). The ITAT also erred in coming to the conclusion that the registration of the Trust as a condition precedent for claiming benefit under Sections 11, 12 r/w Section 13 is not mandatory for the purpose of availing the tax benefit. The ITAT also failed to consider the fact that since the respondent/assessee-Trust was registered as a public Trust on 20.11.2001, therefore, there was no question of registration under Section 12(A)(a) of the Act for the period 26.09.1956 to 20.11.2001. The learned ITAT also erred in allowing the application without considering the fact that the assesse/respondent could not disclose sufficient reasons to condone the inordinate delay. Learned counsel submitted that in the light of the substantial questions of law involved in the case, the order of the ITAT deserves to be set aside and appeal needs to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r CIT, on receipt of application for registration of the Trust or Institution made under Clause a or Clause aa of Sub-Section 1 of Section 12A can call for such documents or information as he thinks necessary in order to satisfy himself about the objects and genuineness of activities of the Trust or Institution and also make such enquiries as he may deem necessary in this behalf and after satisfying himself about the objects of the Trust or Institution and the genuineness of its activities he may pass an order in writing registering the Trust or Institution or if he is not so satisfied, he may pass an order in writing refusing to register the Trust or Institution. Provision of Section 12A(a) of the Act refers to the Trust or Institution . There seems to be no requirement for a Trust to be mandatorily registered as a Public Charitable Trust in the State of India where it is located. The action of Ld.CITExemptions denying the registration merely for the reason that the assessee Trust was not registered as a public Charitable Trust cannot be held to be justified. 7. In the present case, the registration was applied for by the respondent under S. 12AA(i)(b)(i) of the Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
