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TMI Blog2015 (1) TMI 1166X X X X Extracts X X X X X X X X Extracts X X X X ..... However, only with the order Central Government, the Trust can be dissolved and the amount remained with the Trust will go back to the Statutory Authority i.e. Kandla Port Trust. Therefore, in the facts and circumstances of the case, the clauses are not objectionable. Thus petition is allowed. The Commissioner of Income-Tax, Rajkot-1, Rajkot is directed to grant approval to the petitioner-Trust on or before 31.1.2015, from the date on which they made application. - Decided in favour of assessee. - Special Civil Application No. 12659 of 2014 - - - Dated:- 22-12-2014 - K. S. Jhaveri And K. J. Thaker,JJ. For the Petitioner : Mr Tushar P Hemani, Adv. For the Respondent : Mr Pranav G Desai, Adv. ORDER (Per : Honourable Mr. Justice KS Jhaveri) 1. By way of this petition, the petitioner- Trust has challenged the order passed by the Office of Commissioner of Income-tax, Rajkot-1, Rajkot, whereby, the application of the petitioner-Trust for registration under section 10(23AAA) of the Income-Tax Act, has been rejected. 2. Learned advocate Mr. Hemani for the petitioner trust has submitted that while considering the application for the registration under section 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er or] Commissioner in accordance with the rules made in this behalf. Provided that any such approval shall at any one time have effect for such assessment year or years not exceeding three assessment years as may be specified in the order of approval;] Rule 16(C). (1) The fund shall be formed under a trust and it shall be evidenced by a trust deed. (2) The contributions to the fund are to be made by the employees by way of periodical subscription. (3) The application for approval of any fund under clause (23AAA) of section 10 shall be made in Form No. 9 to the Commissioner having jurisdiction over the area or territory in which the accounts are kept and such application shall be accompanied by the documents mentioned therein. (4) Where the Commissioner is satisfied that all the conditions laid down in clause (23AAA) of section 10 are fulfilled in the case of the fund, he shall record such satisfaction in writing and grant approval to the fund specifying the assessment year or years for which the approval is valid so however that such approval shall, at one time, have effect for such assessment year or years not exceeding three assessment years. (5) Where the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e requires which we find in the consolidating Act of 1929 are not to be found in the amending Act of 1928. I attribute little weight to this fact, for, in my opinion, some such words are to be implied in all statutes where the expressions which are interpreted by a definition clause are used in a number of sections with meanings sometimes of a wide, and sometimes of an obviously limited, character. On the other hand, I think due weight ought to be attributed to the words otherwise requires in the Companies Act, 1929, and it is incumbent on those who contend that the definition does not apply to sect. 74 to show with reasonable clearness that the context does in fact require a more limited interpretation of the word debenture then Sect. 380 has assigned to it. The Apex Court has further held that; In National Buildings Construction Corporation v. Pritam Singh Gill and Others, [1973] 1 SCR 40 this Court observed as under: As is usual with most of the definition sections, with the clause, unless there is anything repugnant in the subject or context. This clearly indicates that it is always a matter for argument whether or not this statutory definition is to apply to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rne in mind in interpretation of the provisions. Chagla, C.J. in Prakash Cotton Mill. (P) Ltd. v. State of Bombay, [1957] 2 LLJ 490 observed as under: No Labour legislation, no special legislation, no economic, legislation, can be considered by a court without applying the principles of social justice in interpreting the provisions of these laws. Social justice is an objective which is embodied and enshrined in our Constitution ..... it would indeed be startling for anyone to suggest that the court should shut its eyes to social justice and consider and interpret a law as if our country had not pledged itself to bringing about social justice. In Kanwar Singh v. Delhi Administration, [1965] 1 SCR 7 it was observed as under: It is the duty of the court in construing a statute to give effect to the intention of the legislature. If, therefore, giving a literal meaning to a word used by the draftsman, particularly in a penal statute, would defeat the object of the legislature, which is to suppress a mischief, the court can depart from the dictionary meaning or even the popular meaning of the word and instead give it a meaning which will advance the remedy and suppress the mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctions. 10. Learned advocate Mr. Pranav G. Desai appearing for the respondent has pointed out from the trust deed that definition of beneficiaries includes all the members who are serving and retired employees and members of the family or dependents of serving and retired and deceased employees. The definition of member clearly provides that the members are serving and retired employees of the trust. From the provisions of creation and establishment of trust, it is clearly established that the amount of ₹ 10 lacs has been paid by the Kandla Port Trust to concerned petitioner trust. It also provides subsequent payment as deem fit. Further, it is stated that the amount shall be utilised for the purpose of managing, controlling, utilizing and disposing of the said fund/property for the benefits and welfare of the beneficiaries. 11. It is further borne out that for purpose of trust, it clearly provides that the trust is formed to provide better health care and educational aid to the serving and retired employees of the trust and to the members of the family/dependents of serving/retired/ deceased needing such help, and therefore, he supported the order of Commissioner. Eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants, aids, donations, benefactions of any nature and kind whatsoever for the purpose of fulfilling its objects besides contributions from KPT. 12. Mr. Desai learned advocate for the respondent-authority has contended that the order passed by the Commissioner is right and the petition deserves to be dismissed. 13. While appreciating the facts and interpreting the law on point, it is clear that the very object of the trust is to see that the employees may not have to lend their hands before any person for money at a higher rate of interest from outsider, and for that, the trust is created. If we go through the clauses no. 7 and 10, as referred to hereinabove, they are in consonance with the guidelines issued by the CBDT. On close scrutiny of word contribution , it presupposes the contribution of employee is mandatory and other contribution by the employer in any form is acceptable. The finding of Commissioner is bad in law and against the provision. In that view of the matter, in our view, the Commissioner has wrongly interpreted Rule 16(C) of the Income Tax Rules. In that view of the matter, the interpretation put forward by the Commissioner is required to be rejected. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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