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TMI Blog2015 (10) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... tilize the income as per his sweet will. Prima facie, it appears that Dr. Bagaria, sole trustee has used this device to avoid the tax payment of his professional income. Whatever evidence available on record shows that object of the Trust is neither charitable nor genuine. Therefore, we uphold the order of the learned Commissioner of Income Tax, Jaipur-II, Jaipur. - Decided against assessee. - I.T.A. No. 990/JP/2011 - - - Dated:- 8-8-2014 - Shri R. P. Tolani And Shri T. R. Meena,JJ. For the Petitioner : Shri P.C. Parwal. For the Respondent : Shri Subhash Chandra. ORDER Per: T. R. Meena, A.M. This is an appeal filed by the assessee against the order dated 29/09/2011 of the learned C.I.T., Jaipur-II, Jaipur U/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng expertise in joint replacement in orthopedic department. As per income and expenditure statement of the Trust for the F.Y. 2010-11, there are total receipt of ₹ 14.23 lacs including ₹ 13,90,013 from consultancy charges, ₹ 31,000/- from donation and ₹ 2,122/- from interest. On the basis of details submission by the assessee, it was found that consultancy fees were received from M/s Parkel International Synchron P. Ltd, Banglore against the clinical research work. The research work was done by Shri Bhagwana Ram Bagaria, sole trustee and general surgeon. The research was related to medicine of orthopedic area and also to joint replacement of knee. The assessee did not submit bill/voucher or copy of agreement for rese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit. The Trust is nothing but is a shelter created by Dr. Bagaria through his father to shift his professional income to the Trust to avoid taxation. Thus the basic purpose of the Trust is not charitable but to provide tax benefit to the sole trustee Dr. Bagaria. As per Section 12AA of the Act for granting of registration, following condition is required to be fulfilled: a. The objects of the Society/association should be charitable in nature. b. The activities of the Society/association should be genuine. As per section 12AA(1)(a) of the I.T. Act, 1961: Commissioner of Income Tax shall:- a) Call for such documents or information from the Trust or instruction as he thinks necessary in order satisfy himself about the genuineness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned CIT has not granted registration U/s 12AA of the Act and accordingly, application was rejected by him. Now the assessee challenged the rejection order made by the learned CIT before us. 3. The learned counsel for the assessee submitted that the Trust activity is charitable as providing research work through expertise personal as per Trust deed in medicine of orthopedics and also replacement of knee. The main work has been assigned by M/s Parkel International Synchrom P. Ltd., Bangalore. The Trust has shown these receipts under the head consultancy charge, donation and interest in income and expenditure statement. The activity of the Trust are genuine, which can be proved by the Trust activity that Trust has organized various med ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough sole trustee Shri Bhagwana Ram Bagaria. It is a diversion of income to evade the tax, therefore, the learned CIT had rightly rejected the registration of Trust U/s 12AA of the Act. 5. We have heard the rival contentions of both the parties and perused the material available on the record. It is a fact that Shri Bhagwana Ram Bagaria is sole trustee of the assessee Trust for the life, is a qualified Doctor and an expert in joint replacement in orthopedic department. As per clause-12, the sole Trustee may at any time, dissolve the Trust and spend the entire income and corpus of the Trust for charitable purposes. This clause shows that trustee has given absolute power to dissolve the Trust and utilize the income as per his sweet will. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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