9911796707
TMI Blog2013 (8) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... the Trust. Merely because the Settler of the trust has claimed deduction under section 80G of the Act on the donations made to the assessee Trust, does not merit the cancellation of registration granted to the Trust - No merit in the objections raised by the Assessing Officer that the trust was running its activities from where another trust was also being run under the name and style of M/s Durga Mani Foundation, which is the second assessee before us and also another concern was operating from the said address. In the totality of the facts and circumstances of the case, we reverse the order of Commissioner of Income-tax passed under section 12AA(3) of the Act and hold that the assessee is entitled to the registration already granted to it under section 12AA of the Act - Grounds of appeal raised by the assessee are allowed – Decided in favor of Assessee. - ITA No. 99/Chd/2013, ITA No. 100/Chd/2013 - - - Dated:- 2-8-2013 - Shri T. R. Sood And Ms. Sushma Chowla,JJ. For the Appellant : Shri Tej Mohan Singh Shri B.M.Khanna For the Respondent : Shri Amarveer Singh ORDER Per Sushma Chowla, JM These two appeals by different assessees are filed against separate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax noted that in the Trust Deed dated 01.11.2006, there was a clear stipulation that any change in the terms of Trust Deed could only be done with the prior approval of the Commissioner of Income-tax. Further, it was noted by the Commissioner of Income-tax that the character of the trust was irrevocable and the subsequent alteration of the terms of the Trust Deeds by formulating the supplementary Trust Deed attracted the provisions of section 61 read with section 63 of the Income-tax Act. The Commissioner of Income-tax was of the view that by formulating the subsequent Trust Deeds, the intention of the assessee was not to create an irrevocable trust, which was one of the conditions in getting exemption under the Act. The genuineness of the trust was, thus doubted by the Commissioner of Income-tax. In view of the above, the Assessing Officer submitted a proposal to the Commissioner of Income-tax recommending the cancellation of registration granted to the assessee under section 12A of the Act. The assessee was issued a show cause notice and was also asked to furnish the details of donations being given to other charitable institutions and whether the same should be considered as ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st created by the Supplementary Trust Deed was registered by the Commissioner of Income-tax and in the absence of conditions being not fulfilled, there was no merit in the subsequent order passed by the Commissioner of Income-tax canceling the registration granted to the assessee trust. 7. We have heard the rival contentions and perused the record. In the facts of the present case before us, the trust was originally formed by Smt. Usha Devi Saboo as a sole settler. The said trust was registered with the Sub Registrar, Chandigarh on 21.4.2006. The aims and objects of the said trust were as per para 3 (a) to 3(l) of the said Trust Deed and it was irrevocable. However, another Trust Deed was registered on 01.11.2006 under which two new clauses were incorporated, which read as under :- "i) In the event of dissolution of the trust, all the funds and assets standing in the name of the Trust on the date of dissolution shall be transferred to any other Trust or institution having similar aims and objects and registered under section 12A of the I. T. Act to which the section 80G applies. ii) Any changes or amendments to the clauses of the Trust Deed by addition, deletion or alteration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate accounts in respect of each activity as specified in memorandum shall be maintained. A copy of such accounts shall be submitted to the Assessing Officer alongwith the return of its income for the relevant assessment year. (v) A public notice of the activities carried on shall be duly displayed at the Regd. Office of the Society. (vi) Any search u/s 132 or survey u/s 133A of the IT Act, 1961, conducted hereafter on the Society or on any of the Members of the society should be intimated to this office immediately. (vii) The Society shall regularly file its return of income before the Assessing Officer in accordance with the provisions of the IT Act, 1961. (viii) The Society being registered u/s 12AA (l)(b)(i) shall not indulge in any activity within the meaning of Proviso to section 2(15) of the IT Act, 1961. 9. Thereafter, a proposal was sent by the ACIT, Circle 1(1) Chandigarh to the Commissioner of Income-tax recommending cancellation of registration granted under section 12AA of the Act. The Assessing Officer in the said report stated that "the trust is running its activities from the address SCO 88-89, Sector 8C, Chandigarh. From this address another trust namely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Mr. Yudh Pal Singh. 4 Financial Assistance given to Mr. Arjun Dev for repairs of his in floors at (roof collapsed and walls damaged very badly) vide cheque no 629792/05.10.2009 5000.00 There is only a copy of receipt issued by Mr. Arjun Dev. 5 Testing charges paid to Spiral CT MRI Centre for MRI Testing of Mr Gandharav Singh vide receipt no. 20089/15.11.2009 3750.00 There is only a copy of receipt is sued by Spiral CT MRI Centre. 6 Donation given to Hamari Kaksha-A-class Apart vide cheque no. 629798/23.02.10 for education of poor girl childs vide receipt no. 3894/02.03.2010 25000.00 There is only a copy of receipt issued by Hamari Kaksha-Aclass Apart 7 Donation to Mandla Medical Mission of Rotary International for medical camp at Orissa from 12.03.2010 to 1 7 .0 3 .2 0 1 0 v id e Ch . No.0299452/02.03.2010 15000.00 There is only copy letter. Total 61250.00 10. The objection of the Commissioner of Income-tax was that the sole settler Smt. Usha Devi Saboo in her individual income tax returns had claimed deduction under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust were not genuine and were not being carried out in accordance with the objects of the trust or institution, then in such circumstances, the Commissioner of Income-tax is empowered to revoke/cancel the registration already granted to such trust or institution. It is not the case of the revenue that the activities carried on by the assessee before us were not genuine. Further, it is not the case of the revenue that the trust was not carrying on its activities in accordance with its objects. As referred to by us in the paras herein above, the assessee had given donations to other charitable institutions in line with one of its objects. The Commissioner of Income- tax in the facts of the present case has cancelled the registration under section 12AA(3) of the Act as the assessee had executed supplementary Trust Deed without obtaining the prior approval. However, the assessee claims that it had followed the procedure of law and registered itself with the Registrar of Societies before moving the application for registration under section 12A of the Act. In the totality of the facts and circumstances of the case, the supplementary Trust Deed executed by the assessee on 25.05.2007 is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
