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TMI Blog2017 (5) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and hence not applicable to the relevant AY 2011-2012. 3. Whether on the facts and circumstances of the case and in law, the Ld CIT (A) failed to appreciate the fact that all the changes in the Memorandum of Association has changed the nature of the assessee trust which become charitable trust to religious charitable trust. 4. Whether on the facts and circumstances of the case and in law, the Ld CIT (A) was right in ignoring the decision in the case of Allahabad Agriculture Institute vs. Union of India (291 ITR 116, 119) (All.) wherein it has been clearly held "however, where the objects of the trust or institution, which were the basis for grant of registration, are altered after such grant of registration, the very foundation of the registration having been removed by a voluntary act of the assessee, the registration would not survive. 5. Whether on the facts and circumstances of the case and in law, the Ld CIT (A) failed to appreciate the fact that the section 10(22) has been omitted w.e.f 1999 and hence the deduction under the aforesaid section was not allowable to the assessee. 6. Whether on facts and circumstances of the case and in law, the Ld CIT (A) failed to app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of the proviso to section 2(15) are attracted. But the facts are that the word 'Mumbai' was never there with the name of the Trust. In support, Ld AR brought our attention to certain valid documents ie 12A Registration Certificate issued by the DIT (E), Return of Income, Assessment Order copy etc. Regarding PAN-India presence, there is no change in its objects and the core object continues to be the education ie primary, secondary and higher education. Vocational education is aimed at a transit group with the object of education and it is another mode of imparting of education to those who cannot go for formal education. Further, on the issue of not spending 85% of the income for objects of the trust within the prescribed limits during the year, it is the claim of the assessee that the AO erroneously calculated the said 85% and erred in not computing the same after considering the expenditure on the capital assets. Assessee relied on judicial precedents on the subject. CIT (A) appreciated the above contention of the assessee and allowed exemption u/s 11 of the Act. Aggrieved with the said decision of the CIT (A), Revenue is in appeal before the Tribunal. 4. Before us, Ld DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee replying to each of such findings. AO alleged that the assessee is into commercial education, changed the name of the trust, failed to inform the Charity Commissioner and the DIT(E), claim of exemption u/s 10(22) or 10(23)(vi) or 11 of the Act etc, volition of the provisions relating to non application of 85% of the total receipts during the year etc. 7. Replying to the said allegations, we find the assessee submitted that the amendments to the objects of the trust in principle are aimed at the PAN India presence and without compromising on the education - charity as the principle object of the trust. The fact of not commercializing any of the charitable educational projects was also emphasized uncompromisingly. Referring to the allegation of change in name of the trust, assessee submitted that the name of trust has always been "Sri Rajasthani Seva Sangh" and the same was never changed in any form at any time. In support, assessee relied on the Registration u/s 12A dt 26/5/1973. Referring to the fact of intimation of the amended objects to the DIT (E), assessee submitted that there has never been any such requirement under the law till 31.3.2017 till the insertion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations on the exemption u/s 11 of the I T Act is not relevant for the year under the appeal. In view of the above, the findings of the AO for denying exemption u/s 11 of the IT Act for the AY 11-12 are held to be invalid and there is no other material on this issue requiring further consideration because the appellant has confined its activities under the existing approved memborandum registered u/s 12A of the Act". 8.1. Further, the issue of application of accumulation of total receipts to the extent of 85%, we find the contents of para 4.14 are relevant and the read as under: "4.14 the discussion made by the AO in para 3.4 of the assessment order referring to accumulation of income from year to year is considered by AO in proving the profit motive involved in the operation of the appellant. However, since appellant is claiming exemption u/s 11 of the I T Act 1961 in reference to educational activities, the existence of surplus and profit motive irrelevant in view of Circular no 11/2008 dt 19.12.2008. As for as the issue of required application of 85% of income and accumulation of income within the prescribed limits during the year is concerned, there is no such finding given b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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