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TMI Blog2015 (9) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... e objects in the Trust Deed. In our considered opinion, having regard to the aforesaid fact situation, it would be inappropriate to construe the amendments of 1957 and 1979 as insertions of any new objects of the assessee Trust, rather the amendments only seek to provide enabling powers to the Trust to accomplish its original objects which are in the fields of educational purpose, medical purpose, relief of poverty and objects of general public utility not involving carrying on any activity for profit. In fact, Hon’ble Bombay High Court in the case of Deccan Gymkhana vs. CIT,(2002 (8) TMI 23 - BOMBAY High Court ) as well as Commissioner of Income-Tax, New Delhi Versus Federation of Indian Chambers of Commerce And Industry [1981 (4) TMI 9 - SUPREME Court] has laid down that a distinction has to be made between the ‘purpose’ of a Trust and the ‘powers’ conferred upon the Trustees as being incidental to accomplish the purpose of the Trust. In our considered opinion, the amendments in 1975 &1979, which have been noticed above only seek to enable the Trustees to carry out activities for accomplishing the purpose of the Trust which we have found earlier to be for a ‘charitable purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taxable income. 4. The CIT(A) however, set aside the order of the Assessing Officer and concluded that the denial of exemption under section 11/12 of the Act was not justified, having regard to the facts and circumstances of the case. Notably, the CIT(A) noticed that the assessee Trust was already registered under section 12A for more than 40 years which had not been cancelled; that the original objects of the assessee Trust were charitable which have not been deleted/changed; that even the amendments in the objects remain charitable and do not cause any detriment to the original objects as mentioned in the original Trust Deed; that it is a case where the original objects of providing medical relief, educational help, relief to poor and other objects of general public utility continue to remain the same and only their scope has been enlarged; that the amendments in the objects were carried out in 1975 and 1979, which were duly registered with the Charity Commissioner; and, that in scrutiny assessment for A.Ys 2007-08 and 2008-09, the exemption under section 11/12 of the Act was not denied by the Assessing Officer For all the above reasons, the CIT(A) has allowed the plea of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer in scrutiny assessment for the assessment years 2004-05,2007-08 and 2008-09 allowed the exemption under section 11/12 of the Act. Ld. Representative for the assessee also relied upon the decision of the Mumbai Bench of the Tribunal in the case of Mehta Jivraj Makandas Parikh Govindaji Kalyanji Modh Vanik Vidyarthi Public Trustvs. Director of Income Tax (Exemption),131 ITD 462 (Mum) for the proposition that there is no statutory requirement of intimating the change in objects to the DIT(Exemption). It is further pointed out that the Mumbai Tribunal in the case of Mehta Jivraj Makandas Parikh Govindaji Kalyanji Modh Vanik Vidyarthi Public Trust (supra) has duly considered the judgment of the Hon ble Allahabad High Court relied upon by the Assessing Officer in the case of Allahabad Agricultural Institute Another (supra) and after following the ratio of the judgement of Hon ble Supreme Court in the case of CIT vs. Surat City Gymkhana, 300 ITR 214(SC) held that registration under section 12A of the Act was a fait accompali to hold back the Assessing Officer from further probe into the object of the Trust. Ld. Representative for the assessee emphasized that the original ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. The registration granted to the assessee under section 12A of the Act can be cancelled only as per the statutory requirements, which prescribe that either the activities being carried out are not genuine or that they are not being carried out in accordance with the objects, meaning thereby that the amended objects being pursued are noncharitable. 7.3 In fact the decision in the case of Board of Control for Cricket in India. vs. ITO (supra) relied upon by the Ld. Departmental Representative before us is a case where the amendments in the Memorandum of Association were found to be substantial and material changes and, therefore, the Tribunal opined that such activities were required to be examined by the income tax authorities so as to enable the assessee to continue availing the benefits of section 11/12 of the Act. Notably, in this context, the impugned order of the Assessing Officer does not contain any adverse finding as to whether the additions in the objects have rendered the activities of the assessee as non-charitable. 7.4 In our considered opinion, a mere non-intimation of the amendments in the Trust Deed to the Department cannot ipso-facto lead to cancell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involving an activity for profit. In the amendment made in 1979, it was incorporated that assessee would also promote rural development, including the programme of promoting socio and economic welfare and up-lift in rural areas. 7.8 In the background of the above analysis of the changes in the object clause, in our view, there is no change in the tone and tenor of the objects pursued by the assessee in a real sense. In fact, our aforesaid analysis of the changes in the Trust deed, do not reflect that the objects of the assessee Trust has undergone changes but the amendments are merely enabling clauses which provide only means or power to achieve objects in the Trust Deed. In our considered opinion, having regard to the aforesaid fact situation, it would be inappropriate to construe the amendments of 1957 and 1979 as insertions of any new objects of the assessee Trust, rather the amendments only seek to provide enabling powers to the Trust to accomplish its original objects which are in the fields of educational purpose, medical purpose, relief of poverty and objects of general public utility not involving carrying on any activity for profit. In fact, Hon ble Bombay High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schools with hostel facilities in backward areas. It was also specifically noted that the Trust was running 190 bedded General hospital at Dissa, where poor people were being treated. Similarly, in the assessment order for assessment year 2007-08 passed under section 143(3) of the Act dated 11/12/2009, the Assessing Officer has noticed the activities of the assessee in the field of education, income generation for Angadwadies, de- addiction and other social and economic fields. The Assessing Officer has also noticed that assessee has carried out various projects during natural calamities, apart from the activities of running Angadwadies in villages, High Schools in backward areas and the providing of medical facilities to the poor people. Therefore, the fact situation in the present case, which the AO has also accepted in the scrutiny assessment in past, does not reflect any charge that the activities of the assessee as consequence of the amendment in the Trust Deed of 1975 and 1979 have been of noncharitable nature. Thus, the decision in the case of Board of Control for Cricket in India stands on a different footing and, is of no help to the Revenue in the present case. 8. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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