CIT, Alwar v. International Health Care Education And Research Institute
[Citation -2017-LL-0718-39]

Citation 2017-LL-0718-39
Appellant Name CIT, Alwar
Respondent Name International Health Care Education And Research Institute
Court HIGH COURT OF RAJASTHAN
Relevant Act Income-tax
Date of Order 18/07/2017
Judgment View Judgment
Keyword Tags date of registration • charitable activity • trust deed • registration of trust
Bot Summary: There were no materials before the Commissioner to be satisfied of the genuineness of the activities of the trust or institution. As per Section 12AA(1), there is a procedure for registration where the Commissioner on receipt of such application call for such documents or information to satisfy himself about the genuineness of the activities of the trust or may make such enquiries as he deems necessary in this behalf and after satisfying himself about the objects of the trust and genuineness of the activities, shall pass an order accordingly. CIT has not pointed out any defect in the clauses of the trust deed. The application appears to be in accordance with the requirement of Section 12A read with Rule 17A. In the trust deed the object of the trust have been reduced in writing to fulfill the concept of charity as defined in Section ITA-533/2009 2(15) of the Act. CIT is required to restrict himself to look into the objects of the trust when there is no activity by the assessee trust. We are of the view that observations made by the Tribunal that Commissioner cannot comment about genuineness of its activity and he has not pointed out any defect in the clauses of the trust deed. The activity will be carried out only after the trust is registered.


HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 533 / 2009 C I T Alwar ----Appellant Versus M/s International Health Care Education and Research Institute, C- 162, Ranjeet Nagar, Bharatpur ----Respondent For Appellant(s) : Mr. Daksh Pareek for Mr. Sameer Jain For Respondent(s) : Mr. Harsh Vardhan HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE INDERJEET SINGH Judgment 18/07/2017 1. By way of this appeal, appellant has assailed judgment and order of Tribunal whereby Tribunal has allowed appeal preferred by assessee against judgment and order of CIT(A). 2. This court while admitting appeal on 16.11.2009 framed following substantial question of law:- Whether learned ITAT were right in law and facts in directing CIT to grant registration u/s 12A (a) to respondent after having acknowledged fact that no charitable activity was ever carried out by trust upto 31.3.2008. 3. Counsel for appellant has taken us to reasoning adopted by Commissioner of Income Tax, Alwar where application of assessee for registration was rejected and he (2 of 3) [ITA-533/2009] has also relied upon decision of Kerala High Court in Self Employers Service Society vs. CIT 247 ITR 118 headnote of judgment reads as under:- In present case, admittedly, society has not done any charitable work during relevant period, on other hand, activities which they have carried on during period were only for purpose of generating income for its members. There were no materials before Commissioner to be satisfied of genuineness of activities of trust or institution. Under these circumstances, rejection of application cannot be termed as illegal or arbitrary. 3.1 However, tribunal while considering matter has rightly considered very object of registration in para no.4 and held as under:- We have heard rival contentions and perused facts of case. trust was carried on 1.1.2008 and application in form no.10A was filed on 18.2.2008 for seeking registration u/s 12A(a) of Act. As per Section 12AA(1), there is procedure for registration where Commissioner on receipt of such application call for such documents or information to satisfy himself about genuineness of activities of trust or may make such enquiries as he deems necessary in this behalf and after satisfying himself about objects of trust and genuineness of activities, shall pass order accordingly. In present case on date of registration and upto 31.3.2008, no activity has been carried out by assessee. Therefore, it will be premature for ld. CIT to take decision that activities are not of charitable in nature. Therefore, in such circumstances and facts of case, ld. CIT cannot comment on genuineness of its activities. As regards object of trust, ld. CIT has not pointed out any defect in clauses of trust deed. application, therefore, appears to be in accordance with requirement of Section 12A read with Rule 17A. In trust deed object of trust have been reduced in writing to fulfill concept of charity as defined in Section (3 of 3) [ITA-533/2009] 2(15) of Act. Therefore, ld. CIT is required to restrict himself to look into objects of trust when there is no activity by assessee trust. reliance has been placed on decision of various courts of law on identical issue as under:- 1. Fifth General Education Society vs. CIT, 158 ITR 634 (All.) 2. New Life in Christ E. Association Vs. CIT 246 ITR 532 (Guj.) 3. N.N. Desai Charitable Trust vs. CIT 246 ITR 452 (Guj.) 4. We are of view that observations made by Tribunal that Commissioner cannot comment about genuineness of its activity and he has not pointed out any defect in clauses of trust deed. activity will be carried out only after trust is registered. 5. In that view of matter, we are in complete agreement with view taken by Tribunal. issue is answered in favour of assessee and against department. 6. appeal stands dismissed. (INDERJEET SINGH),J. (K.S. JHAVERI),J. Brijesh 63. CIT, Alwar v. International Health Care Education And Research Institute
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