TMI Blog2015 (7) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... ndum of Association of the assessee are: * To conduct short-term and long-term academic and other training programmes in furtherance of the futuristic human resource needs of the emerging sustainable energy, sustainable development and energy conservation sectors. * To be a premier outreach centre for communications, information and knowledge transfer in the fields of sustainable energy, sustainable development and energy conservation. * To function as an apex policy think tank, policy advocacy centre and consultancy provider in the field of sustainable energy and energy conservation. * To take up technical and other research in selected and specialized areas of vital importance for augmenting and accelerating sustainable development in a holistic manner, for a transition to a cleaner and greener world. * To establish, maintain and operate libraries, laboratories and prototype training centres and hold seminars and training programmes in concordance and furtherance to these objectives. 3. The assessee was granted registration u/s. 12A on 05-03-2004. The assessee was also granted approval for benefit of section 80G of the Act on 13-10-2005. Thereafter, the registration of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered under the Societies Registration Act, 1860 on 18-12-2003 and under the Bombay Public Trust Act, 1950 on 23-04-2004. The assessee was granted registration u/s. 12A of the Act on 05-03-2004 and the benefit of section 80G w.e.f. 13-10-2005. The assessee has conducted training programmes in furtherance of the futuristic human resource needs of sustainable energy, sustainable development and energy conservation. The assessee is involved in research for a transition to a cleaner and greener world. To achieve its objects the assessee has purchased four Wind Turbine Generators by investing its entire corpus and borrowings from the banks. The assessee is publishing a Bi-monthly newsletter "Green Energy", which is the only holistic publication on Sustainable Energy in India. The said publication is distributed free of cost. The assessee is organizing seminars and short duration training programmes for creating awareness in Sustainable Energy and Conservation of Energy. The ld. AR further contended that the Governing Council of the assessee appointed Shri G.M. Pillai, I.A.S. (Retd.) as the Director General. He had wide exposure and experience in the field of Energy Development and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first ground for denying exemption u/s. 11 held as under: "4.3.6. In the face of such irrefutable evidences that the Assessing Officer had before him but chose to ignore, I therefore, find myself unable to be persuaded by the Assessing Officer's objection that no charitable activities have been carried out. The word 'charity' is undoubtedly of the widest import. A charitable organization encompasses a company formed under section 25 of the Companies Act or a society formed under Society Registration Act, 1860 or any Stale Act for Registration of Societies. A charitable trust should have public character in the sense that its activities, while not reaching out to humanity as a whole, are available to a cross section of the public. At the same time, charity need not be confined to the poor. The philanthropic purpose of serving the poor is better served, when its facilities are made available or put to use for earning income from well to do patients. What is barred is private profit as held by the Supreme Court in P.C. Raja Ratnam Institution vs MCD 181 ITR 354. There are also a catena of decisions in which varied objects of general public utility and not merely educati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, this objection of the Assessing Officer that the situs of the trust shows that the essential condition regarding application of income within India only, is not fulfilled, is seen to be based on only presuppositions and surmises without any reference to any concrete facts. There is no material that has been brought on record by him to show that the appellant was carrying out any activity outside India or that the corpus of the appellant was located outside India. This view is also contrary to the legal view that so long as the income derived from property has been applied for charitable or religious purposes in India, a charitable origination is not prohibited from incurring expenditure outside India." 9. The third ground for denying exemption u/s. 11 to the assessee by Assessing Officer is, the trustees are the Directors of the companies from which the assessee has purchased windmills. Thus, the trustees of the assessee trust have substantial interest in the companies manufacturing windmills. The Commissioner of Income Tax (Appeals) discarded these findings of the Assessing Officer with following observations: "4.3.16. In the present case, it is not denied that substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer to discharge the onus of application of sec. 13(1)(c) for denying the benefit of sec. 11, it has to be held that in the face of the fact that no evidences have been brought on record by the Assessing Officer to hold the payment to Suzlon and Enercon as undue or excessive, the finding that there is some infringement of sec. 13(1)(c) is erroneous. The Assessing Officer has failed to bring on record adequate materials which can support his findings." 10. The last and fourth ground for refusing to grant exemption u/s. 11 by Assessing Officer is, excessive remuneration/perquisites paid to Shri G.M. Pillai, Director General of the assessee. Undisputedly, Shri G.M. Pillai is an employee of the assessee trust and not its trustee. Therefore, the provisions of section 13(2)(c) are not attracted. The Commissioner of Income Tax (Appeals) after ascertaining the facts has observed as under: "4.3.18. I have considered the submissions made and find myself unable to accept the conclusion drawn by the Assessing Officer on this aspect of the matter. In the first place, the Director General is a professional who has been hired by the appellant to manage the affairs of the trust. He is an em ..... X X X X Extracts X X X X X X X X Extracts X X X X
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