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TMI Blog2011 (3) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... justification for rejecting the application for renewal under section 80G - Appeal is allowed - IT APPEAL NO. 2212 (MUM.) OF 2010 - - - Dated:- 11-3-2011 - RAJENDRA SINGH, V.D. RAO, JJ. A.H. Dalal for the Appellant. A.K. Nayak for the Respondent. ORDER Rajendra Singh, Accountant Member. This appeal by the assessee is directed against the order dated 3-2-2010 of the Director of Income-tax (Exemption) (DIT-E). The only dispute raised is regarding renewal of exemption under section 80G which has been denied by the DIT(E). 2. Briefly stated the facts of the case are that the appellant trust had been registered under section 12A of the Income-tax Act vide order dated 21-11-1975 and had also been granted exemption under section 80G earlier. The assessee filed application dated 13-4-2009 requesting for renewal of exemption under section 80G. The DIT(E) noted that the original objects of the trust had been amended and new objects were inserted in view of the order dated 17-3-1994 of the Charity Officer under section 50A(1) of Bombay Public Trust (BPT) Act. The assessee had however not filed any fresh application for registration under section 12A which had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 80G. The assessee also submitted that it had intimated the changes in the trust deed to the Assessing Officer. It was accordingly urged that claim of renewal under section 80G should be allowed. 4. The DIT(E) was however not satisfied by the explanation given. It was observed by him that there was no dispute that there had been changes made in the original objects and the assessee had not communicated the changes to the department for almost 15 years. The issue therefore arose whether the registration granted under section 12A on the basis of original objects would survive after the objects were amended. It was observed by him that the issue regarding addition/deletion of the objects had been dealt with by the Hon'ble High Court of Madras in case of Sakthi Charities v. CIT [1984] 149 ITR 624/19 Taxman 100 and subsequently in the same case as Sakthi Charities v. CIT [1990] 182 ITR 483. The Hon'ble High Court held as under : "(a) a rectification deed cannot be valid unless there is power to alter the objects in the trust deed itself. (b) once a trust had been founded with certain objects, those objects could not be deleted even by the founder of the trust though it was pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 12A, the registration could not be granted under section 80G. The DIT(E) therefore rejected the application for renewal of approval under section 80G of the Income-tax Act aggrieved by which the assessee is in appeal before the Tribunal. 6. Before us the Learned AR for the assessee assailed the order of DIT(E). It was submitted that in this case the changes in the objects were made under the provisions of section 50A(1) of the BPT Act and therefore in respect of such changes no sanction of the High Court was necessary. It was also submitted that there were no changes in the objects of the trust which remained the same and the only change was that the area of application was enlarged and it was made applicable to all deserving students. The objects remained charitable even after changes. It was also argued that judgment of Hon'ble High Court of Allahabad in case of Allahabad Agricultural Institute (supra) was distinguishable as in that case there were several changes made in the objects of trust. As regards the intimation regarding changes in the objects, as provided in the form No. 10A, it was submitted that the assessee was not aware of the said provision. Moreover i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust were amended. The new objects have been reproduced at page 2 of this order. The case of the revenue is that the objects of the trust cannot be amended without the approval of the Hon'ble High Court. Reliance has been placed on the judgment of Hon'ble High Court of Madras in case of Sakthi Charities (supra). It has also been argued that the changes in the objects of the trust was not intimated to the department as provided in the form No. 10A. The revenue has therefore taken the view that the trust originally constituted was no longer valid in view of the changes made in the trust. DIT(E) therefore rejected the application for grant of renewal under section 80G. 8.1 The case of the assessee is that changes had been made to the objects of trust in view of the order dated 17-3-1994 of the Charity Officer under section 50A(1) of the BPT Act. Therefore in such cases approval of the High Court was not necessary. It has also been submitted that there was no statutory requirement of intimating the changes. The requirement of intimation was provided only in the form No. 10A which was not a statutory requirement. Therefore registration could not be denied only for not intimating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h later and therefore technically there is no violation on the part of the assessee because of no time limit being prescribed. Moreover, there being no statutory requirement of intimating changes, registration cannot be cancelled or the trust cannot be declared invalid only on the ground that changes were not intimated. 9.1 The other argument of the revenue is that because of the changes made in the trust which was not legal, the trust has become invalid and therefore the registration already granted under section 12A could not survive. Reliance has been placed on the judgment of Hon'ble High Court of Allahabad in case of Allahabad Agricultural Institute (supra). We have gone through the said judgment. In that case the assessee had been granted registration under section 12A based on certain objects. Subsequently there were changes made in the objects which were not intimated to the department. The Assessing Officer therefore held that the registration granted under section 12A was not valid and thus did not grant exemption under section 11 of the Income-tax Act. The decision of the Assessing Officer was challenged in a writ petition under article 226 of the Constitution. The Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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