9911796707
TMI Blog2015 (9) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... om the date the amendment to the trust deed is effected through the civil court having jurisdiction over the matter. In our view, such observation of the learned Director of Income-tax (Exemptions) is not strictly in compliance to the directions of the Income-tax Appellate Tribunal in the order dated February 3, 2012. It is also relevant to note that the learned Director of Income-tax (Exemptions) is also satisfied that the assessee is eligible for approval under section 80G(5). As far as the decision of the hon'ble Supreme Court in the case of CIT v. Kamla Town Trust [1995 (11) TMI 1 - SUPREME Court] it is relevant to mention that the hon'ble Andhra Pradesh High Court in the case of DIT (Exemptions) v. Ramoji Foundation [2015 (2) TMI 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ental representative opposed the condonation of delay. 3. Having considered the submissions of the parties, we are of the view that there is sufficient reason for condoning the delay as the assessee in pursuance to the directions of the learned Director of Income-tax (Exemptions) had approached the civil court which resulted in belated filing of the present appeal. Therefore, being satisfied with the bona fide reasons for delay, we condone the same and admit the appeal for hearing. 4. Briefly the facts are, the assessee is a trust registered under section 12A of the Act. The assessee applied in Form 10G on November 12, 2012 seeking approval under section 80G(5)(vi) of the Act. However, approval was not granted to the assessee vide ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions) held that only after the assessee carries out such rectification/ amendment through civil court having jurisdiction over the matter, grant of approval under section 80G(5)(vi) will be effective. Being aggrieved of the aforesaid observation of the learned Director of Income-tax (Exemptions), the assessee is before us. 6. The learned authorised representative submitted before us, there is no dispute to the charitable object of the assessee as the assessee is not only registered under section 12AA of the Act, but, the learned Director of Income-tax (Exemptions) has also granted approval under section 80G(5)(vi) subject to getting the rectification/amendment approved through civil court. The learned authorised representative submitted, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact that not only the assessee's objects and activities are charitable in nature but it has also fulfilled the conditions of section 80G(5). In the aforesaid factual background, it is to be examined, whether the learned Director of Income-tax (Exemptions) was justified in putting a condition on the assessee that amendment to the trust deed should be effected through the civil court. As can be seen, while disposing of the assessee's appeal in earlier round, the Income-tax Appellate Tribunal in I. T. A. No. 1343/Hyd/ 2011 dated February 3, 2012 not only has given a categorical finding that the assessee has made necessary amendment to the trust deed by confining its activities to India but has also observed that the assessee has ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) only on the reason that the object clause contains the clause that the activities of the trust and its objects will not be confined to India. To grant approval under section 80G of the Act, the Director of Income-tax (Exemptions) can examine whether or not the conditions set out in section 80G(5)(i) to (v) are satisfied. If the assessee has satisfied the above conditions, there is no reason to deny the approval under section 80G of the Act by the Director of Income-tax (Exemptions). More so, in the present case, the assessee has already made amendment to the trust deed whereby the clause 3.2 was amended as follows : 'the activities of the trust and its objects will be confined only to India.' Being so, as on date, there can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that in a case where the trust is empowered under the trust deed to make amendment there is no need to approach civil court. In the present case, a perusal of the trust deed, copy of which is at page 61 of the assessee's paper book, indicates that the trustees are empowered to make amendment to the trust deed. Therefore, the decision of the jurisdictional High Court (supra) squarely applies. In view of the ratio laid down by the hon'ble jurisdictional High Court as aforesaid, we are of the opinion that there is no need for the assessee to approach the civil court for amending the trust deed. In view of the above, we direct the learned Director of Income-tax (Exemptions) to grant approval to the assessee under section 80G(5)(vi) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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