2009 (12) TMI 548 - HC - Income Tax

Registration to the assessee-trust - provisions of section 12AA - main object was providing medical facilities to the sick and handicapped and also provide medical education, training and research in the field - The trust filed an application in Form 10A and 10B and 12A(a) and 80G of the Act for registration of the trust under section 12AA and exemption under section 80G(vi) of the Income-tax Act - On verification of the trust deed along with its enclosures, the Commissioner of Income-tax noticed that the requisite clause indicating that any amendment to the trust deed would be carried out after obtaining approval from the Commissioner of Income-tax, has not been incorporated, and on that ground directed the assessee-trust to an amended deed, which is duly registered along with notes on the activities of the trust with regard to various expenses debited in the income and expenditure account for the years - Held that - amended trust-deed is not a pre-requisite, as required by the Commissioner of Income-tax and it is not also not a pre-requisite condition for registering the applicant as a trust as per the provisions of the Act - Matter remanded back to Commissioner of Income-tax - appeal is dismissed

Summary

Issues:
1. Whether the Tribunal was right in setting aside the matter of granting registration to the assessee-trust?
2. Whether the decision in the case of New Life in Christ Evangelistic Associations v. CIT [2000] 246 ITR 532 is applicable to the present case?
3. Whether the rejection of the application for registration under section 12AA and exemption under section 80G(vi) was justified?

Analysis:
1. The Revenue appealed against the Tribunal's order regarding granting registration to the assessee-trust. The trust applied for registration under section 12AA and exemption under section 80G(vi) of the Income-tax Act. The Commissioner of Income-tax directed the trust to amend its deed, but the trust did not comply. The Tribunal referred to the decision in New Life in Christ Evangelistic Associations v. CIT [2000] 246 ITR 532 and allowed the appeal, setting aside the rejection by the Commissioner. The High Court found no grounds to interfere with the Tribunal's order, dismissing the appeal.

2. The High Court referenced the decision in New Life in Christ Evangelistic Associations v. CIT [2000] 246 ITR 532, which outlined the conditions for registration under section 12A. It was held that the application for registration should be timely, and the Commissioner could not insist on certain requirements not mandated by the Act. The Tribunal, based on this decision, set aside the rejection of the application and directed a fresh decision after providing a reasonable opportunity for the assessee to be heard. The High Court concluded that no substantial question of law arose from the Tribunal's order.

3. The rejection of the application for registration under section 12AA and exemption under section 80G(vi) was based on the trust's failure to comply with the Commissioner's directions regarding amending the trust deed. The Commissioner held that the trust was not entitled to registration due to non-compliance. However, the Tribunal, following the decision in New Life in Christ Evangelistic Associations, overturned the rejection. The High Court upheld the Tribunal's decision, stating that there were no grounds to interfere, and dismissed the appeal without costs.