THE COMMISSIONER OF INCOME TAX (EXEMPTION) BHOPAL v. SEWA DRISHTI SAMITI
[Citation -2015-LL-0921-23]
Citation | 2015-LL-0921-23 |
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Appellant Name | THE COMMISSIONER OF INCOME TAX (EXEMPTION) BHOPAL |
Respondent Name | SEWA DRISHTI SAMITI |
Court | HIGH COURT OF MADHYA PRADESH |
Relevant Act | Income-tax |
Date of Order | 21/09/2015 |
Judgment | View Judgment |
Keyword Tags | grant of registration to trust • activities and transaction of trust |
Bot Summary: | 12A of the Act prescribes conditionsfor registration of the trust whereas s.12AA of theAct prescribes the procedure for registration. Acareful reading of the relevant provisions wouldreveal that application for registration under s.12A has to be made in Form No.10A prescribedby r.17A before the expiry of one year from thedate of creation of the trust or establishment ofthe institution whichever is later. The applicationhas to be made by a person in receipt of income ofthe trust. Sec.12AA nowhere provides that CIT whileconsidering the application for registration is alsorequired to examine whether the income derivedby the trust is being spent for charitablepurposes or the trust is earning profit. Our view finds support from the Division Bench decision of the Allahabad High Court rendered in the case of Red Rose School and the decisions in the cases of New Life in Christ Evangelistic Association, Fifth Generation Education Society and Shantagauri Ramniklal Trust. If the assessment made and the reasons given by thelearned competent authority in the order passedrejecting the application under section 12AA(1) of theIncome Tax Act, is perused, we find that the applicationhas been rejected on merits after considering varioustransactions and activities of the Trust in question andnot based on the activities of the Trust. The Tribunal has not committed any errorin applying the law laid down in the case of DPRCharitable Trust. |