GCDA Employees' Pension Fund Trust v. Commissioner of Income-tax
[Citation -2014-LL-1008-27]

Citation 2014-LL-1008-27
Appellant Name GCDA Employees' Pension Fund Trust
Respondent Name Commissioner of Income-tax
Court HIGH COURT OF KERALA AT ERNAKULAM
Relevant Act Income-tax
Date of Order 08/10/2014
Judgment View Judgment
Keyword Tags general public utility • chamber of commerce • coffee board
Bot Summary: JUDGMENT The judgment of the court was delivered by Antony Dominic J.-This appeal is filed against the order passed by the Income-tax Appellate Tribunal in I. T. A. No. 503/Coch/2013 by which the order passed by the Commissioner of Income-tax rejecting the application made by the appellant for registration under section 12AA of the Income-tax Act, 1961. We heard the learned senior counsel for the appellant and the learned standing counsel for the respondents. The object of the trust is to pay pension to the employees of the Greater Cochin Development Authority from the corpus created out of the contributions made by the employees of the GCDA itself. Taking the view that the said object of the trust did not spell out any charitable purpose as defined in section 2(15) of the Act registration under section 12AA was declined and was affirmed by the Income- tax Appellate Tribunal. The learned senior counsel for the appellant contended that even if it is true that the distribution of pensionary benefits is to the employees of the GCDA itself, this activity of the trust is general public utility attracting the provisions of section 2(15) of the Act and that the trust is entitled to registration as prayed for. As we have already stated, the object of the trust is to pay pension to the employees of the GCDA or their dependents from out of the corpus collected from the beneficiaries themselves. The learned senior counsel also made reference to the list of other institutions which are registered under section 12AA of the Act.


JUDGMENT judgment of court was delivered by Antony Dominic J.-This appeal is filed against order passed by Income-tax Appellate Tribunal in I. T. A. No. 503/Coch/2013 by which order passed by Commissioner of Income-tax rejecting application made by appellant for registration under section 12AA of Income-tax Act, 1961 ("the Act" for short). We heard learned senior counsel for appellant and learned standing counsel for respondents. facts of case are that, appellant is trust. object of trust is to pay pension to employees of Greater Cochin Development Authority (GCDA) from corpus created out of contributions made by employees of GCDA itself. Taking view that said object of trust did not spell out any charitable purpose as defined in section 2(15) of Act registration under section 12AA was declined and was affirmed by Income- tax Appellate Tribunal. learned senior counsel for appellant contended that even if it is true that distribution of pensionary benefits is to employees of GCDA itself, this activity of trust is general public utility attracting provisions of section 2(15) of Act and that, therefore, trust is entitled to registration as prayed for. learned senior counsel also placed reliance on judgments in CIT v. Bar Council of Maharashtra [1981] 130 ITR 28 (SC), Hiralal Bhagwati v. CIT [2000] 246 ITR 188 (Guj), Coffee Board v. Deputy Commissioner of Agrl. I. T. [1964] 52 ITR 126 (Mys), CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC), Commissioner of Agrl. I. T. v. Rubber Board [1997] 226 ITR 722 (Ker), CIT v. Ahmedabad Rana Caste Association [1983] 140 ITR 1 (SC) and Norka Roots v. CIT [2010] 320 ITR 733 (Ker) in support of his contentions. As we have already stated, object of trust is to pay pension to employees of GCDA or their dependents from out of corpus collected from beneficiaries themselves. In other words, employees of GCDA are contributing and from out of that contribution, they or their dependents are getting pension. Such object implemented by appellant-trust cannot be said to be object of general public utility attracting section 2(15) of Act. decisions cited by learned senior counsel are all cases where beneficiaries are persons other than contributories and, therefore, principles laid down in those cases are not applicable to facts of this case. learned senior counsel also made reference to list of other institutions which are registered under section 12AA of Act. eligibility for registration depends upon object of each of those trusts. Such objects are not before us. In such circumstances, we are unable to rely on list now provided to us. We, therefore, do not find any reason to disagree with view taken by Income-tax Appellate Tribunal. income-tax appeal fails and same is dismissed. *** GCDA Employees' Pension Fund Trust v. Commissioner of Income-tax
Report Error