9911796707
TMI Blog2012 (3) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... ef facts of the case are that assessee trust formerly known as Ram Krishan Charitable Kulwant Rai Trust was set up on 1st February, 2001. It applied for grant of registration u/s 12A on 27.12.2001. The registration was granted to the assessee vide order No. DIT(E) 2001 - 2002/R-416/01/215 dated 25.6.2002. The name of the trust has been changed from Ram Krishan Kulwant Rai Charitable Trust to IILM Foundation. It requested for change of the name in the registration certificate. The application of the assessee was examined and accepted by the DIT (Exemptions). Accordingly, a fresh registration u/s 12A read with section 12AA was granted to the assessee w.e.f. asstt. year 2008-09 vide order dated 2nd June, 2008. The assessee is presently ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings does not have any impact on the other proceedings. Being a charitable institution, there is obligation on its part to conduct its activities in more transparent and reliable manner. General public, even Government agencies are looking towards charitable organizations for various philanthropic purposes. As a consequence of such trust, voluntary donations and grants are being given to such charitable institutions to carry philanthropic activities for the benefits of the general public and society at large. Further, tax incentives have been extended not only to these charitable institutions exempting their income from tax but also the donors to these charitable institutions are given tax benefits as well. In this background it is mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the record carefully. Ld. DIT had issued notice for cancellation of registration on the basis observation made by the AO in the asstt. order for asstt. year 2003-04. When assessee apprised the Ld. DIT that Ld. CIT (A) did not concur with the conclusion of AO and order of Ld. CIT (A) has been upheld by ITAT. Ld. DIT observed that proceeding u/s 12AA(3) are separate proceeding from the asstt. proceeding. Meaning thereby, he can independently examine the issue under sub section 3 of section 12AA which provide a procedure for cancellation of registration already granted to the assessee. This clause read as under :- [(3) Where a trust or an institution has been granted registration under clause (b) of sub-section (I) [ or has obtained regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 4.43 crore to RKSCT then probably there would be no prejudice to the revenue and there could be no grievance. The receipt ought to be received by RKSCT and it would then treated as application of income by that trust towards its objects. Ld. DIT has not pointed out as to how donations made by assessee are not in accordance with the objects and it cannot be treated as genuine activities of the trust. This is not the only institution run by the trust, the RKSCT is running various other institutions and its activities have not been doubted. The show cause notice is based on the observations of AO in asstt. year 2003-04. However, those observations were not upheld by the Ld. First Appellate Authority as well as by ITAT. Copy of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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