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TMI Blog2014 (2) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... -2-2014 - Sh. H. S. Sidhu And Sh. B. P. Jain,JJ. For the Appellant : Sh. S. K. Bansal, Adavocate For the Respondent : Sh. Mahavir Singh, Sr.D.R. ORDER Per Bench 1. The assessee has filed the present appeal against the impugned order dated 24/25th September, 2013 passed by learned CIT-II, Amritsar, under Section 12AA(1)(b)(i) of the Income-tax Act, 1961 (in short "the Act"). 2. The assessee filed its application under Section 12A(1) for grant of registration under Section 12AA of the Act on 26.03.2013. The application was accompanied with photocopy of Trust Deed dated 25.12.2012, containing the objectives and functions of the society. The Trust Deed has been registered with the Sub-Registrar-cum-Tehsildar, Amritsar vide Vasika no. 3336 dated 14.03.2013. Learned CIT-II, Amritsar, called a report from the Deputy Commission of Income Tax, Circle-V, Amritsar, who was the jurisdictional Officer and he submitted his report on 30.08.2013. Both the Assessing Officer and the Additional Commissioner had not recommended the registration to the assessee under Section 12AA of the Act. 3. Learned CIT-II, Amritsar, fixed the case of the assessee-trust for 12.09.2013, giving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the Hon'ble High Court has held that the Commissioner of Income Tax has to see the objectives of the trust and not its application of income and has wrongly refused registration to the assessee trust under Section 12AA of the Act by passing the impugned order. He further stated that learned CIT-II, Amritsar, has not pointed out that any beneficiary has not taken any advantage directly or indirectly of the trust fund or trust income and the learned CIT has not appreciated the fact that all the donors and members of the trust who contributed Rs. 4 lakhs were through P/A cheque or not in cash and are income tax payee. Finally, he stated that the trust is not running any hospital or school where huge space is required, but it is distributing medicines, school books, contribution to Prime Minister Relief Fund, Rashan to the widows, marriage or re-marriage of poor girls or widows and contribution to blind schools etc, where all the payments are made by cheque and does not required any separate building. Therefore, the impugned order passed by learned CIT-II, Amritsar, is against the law and facts and against the evidence produced by the assessee and the same deserves to be cancell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as under: Cheque No. 624671 On Punjab National Bank, Amritsar Cantt (Pb.)- 143 001 Dated 25.12.12 Rs. 1,00,000/- AND WHEREAS the settler has handed over the said cheque of Rs. 1 lac bearing No. 624671 to the three trustees as mentioned above. AND WHEREAS all the three Trustees along with settler have agreed to become the first Trustees of these presents as testified by their being parties to and execute these presents. NOW THIS DEED OF TRUST WITNESSETH AS UNDER: 1. That in pursuance of the said desire and to affect to the said intentions the settler has before the execution of these presents handed over to the Trustees the said P/A cheque of Rs. 1 lac TO HAVE AND TO HOLD THE SAME upon Trust and the Trustee do and each of them both by these presents, declared that they, the Trustees shall hold and stand possessed of the said amount of Rs. 1 lac. 2. If any donations or contributions received by them shall be deposited in the bank. The trustees shall deposit the Trust Fund with Indian Scheduled bank only. 3. The Trust hereby created shall be styled as M/s G.D. Kavita Singla Charitable Trust. 4. The Trustees shall hold and stand possessed of the said Trust Fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the poor people and furnishing the same for the purpose. 8. The relevant provision for registration of the trust or institution i.e. Section 12AA of the Act, are reproduced as under: " Procedure for registration 12AA. (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause(a) or clause [or clause (aa) of section (1)] of section 12A, shall-- (a) Call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he--- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant: Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. (1A) All appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be satisfied about the genuineness of activities of the trust or institution, as the case may be. 10. On the face of trust deed, a doubt is created in the mind that one Singla family had constituted the assessee-trust, which is not permissible under the law. For getting the benefit of registration under Section 12AA of the Act, motive should be very clear that is one and only charitable to the public in general not to family or a particular community or caste. There should not be any benefit of income, contribution and funds of the trust directly or indirectly to any relative of the trustee. As per the trust deed, the trust has been constituted by family members of founder of the trust, Sh. R.D. Singla and the entire control of the trust is vested within the family itself. Learned counsel for the assessee has relied upon various case-laws. 11. We have thoroughly gone through all the judgments of Hon'ble High Court cited by learned counsel for the assessee and found that these are not applicable to the fact and circumstances of the present case. In all the case-laws relied upon by learned counsel for the assessee, he has not cited any case law where the trust has been con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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