9911796707
TMI Blog2019 (9) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... raph (B) of this order, we find that the trust is expressly declared to be a public charitable trust in paragraph (6) of the trust deed. It is nowhere the case of the ld. CIT(E) that the applicant did not comply with procedural requirements prescribed under sub-Rules (1), (2) and (3) of Rule 11AA of I.T. Rules. Moreover, in view of the foregoing paragraph (C.1) of this order, we find that further documents or information called for by the ld. CIT(E) were provided by the applicant trust. When the applicant has limited financial resources (₹ 19,000/- in this case), the mere fact that the applicant has not spent substantial amount for charitable work cannot be held against the assessee so far as the approval under section 80G of the Income Tax Act is concerned. Unless the learned CIT(E) expresses his satisfaction that one or more conditions laid down in Clauses (i) to (v) of Section 80G(5) of Income Tax Act are not fulfilled; the learned CIT(E) is required to grant approval under section 80G of I.T. Act, when the applicant has complied with procedural requirements prescribed under sub-Rules (1), (2) and (3) of Rule 11AA of I.T. Rules. We are of the view that the learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. NOW THIS DEED THEREFORE WITNESSETH AND IT IS HEREBY DECLARED BY THE EXECUTANT TRUSTEE/ SETTLOR IS AS FOLLOWS: 1) The name of the Trust shall be JUSTBE FOUNDATION 2) The Head office of the Trust shall be at Delhi but the trustees are at liberty to transfer it and open branches at such other place or places as they may decide. 3) Trustees: There shall be not less than two and not more than five trustees at any time, who altogether, shat, constitute the Board of Trustees provided that the following shall constitute the first Board of Trustees who have given their consent to become trustees: 1. Ms. Lavanya Anirudh Verma, D/O Mr. H. Rajamani, R/O F-001 Yamuna Apartments, Alaknanda, New Delhi 110019 2. Ms. Mayoori Sangameshwar Hanagodimath, D/O Late Mr. Sangameshwar Hanagodimath, R/O 520 Sarita Vihar, Pocket A, new Delhi 110 076 Ms. Lavanya Anirudh Verma, Chairperson of the Boardof Trustees, shall hold office for life and shall preside over all the meetings of the Board and shall have a casting vote in the event of a tie of votes amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding bridge schools, remedial schools and tuition centres), colleges, technical and/ or otherinstitutions, libraries, reading rooms, lecture halls, studygroups, public museums, galleries or paintings, and/ or other works of art or collection of natural history and to grant aid for the promotion of science or literature or fine arts or diffusion of useful knowledge or economic and scientific inventions and designs and to grant aid, support and maintain persons and institutions engaged therein. OTHER OBJECTS I) To establish an award and/or reward, financial or otherwise for the deserving people in the field of Social service, Communal harmony, brotherhood and peace, within the trust and larger community in society m) To construct, repair or maintain such places and buildings to provide shelter to the needy public such as orphanages, shelter homes and/ or to give aid in cash or kind for marriage of poor children or to orphans or abandoned or poor or needy persons, n) To arrange / establish / rent andmaintain centers and to support and/ or partner any institution technical or otherwise to help support beneficiaries (financially or otherwise) as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... theassets or otherwise of the Foundation by way of bank overdraft, loan or otherwise, as may be necessary for the benefit of the Foundation and for more effectively carrying out the objects of the Foundation and to authorize one or more of the Trustees to execute such documents, deed, papers, etc. as may be necessary in connection therewith. f. The trustees shall cause to be maintained true andcorrect account of all assets and liabilities and money received or expenses incurred and get the accounts audited by a Chartered Accountant. The first accounts of the Foundation shall be closed on 31st March 2018 and thereafter annually on 31st March each year. g. The trustees shall meet atleast two times in every calendar year. h. To appoint Constituted Attorneys or Agents with all or any of the powers vested in them under those present and from time to time remove such Attorneys or agents and to appoint other or others in his or their place. i. To appoint Trustee, Secretary, Manager, Treasurer, Clerks or other Officers or employees to look after and manage the Foundation Properties and to allot to such Secretary, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BOVE WRITTEN. 3. The applicant filed separate applications in Form Nos. 10A 10G, each dated 11.10.2017; the former application seeking registration under section 12AA of I.T. Act; and the latter seeking approval under section 80G of the Income Tax Act respectively; in the office of the ld. CIT(Exemption). The applicant also filed copy of financial statement (including receipt and payment account statement of affairs). Further, the applicant filed copies of banker s cheques amounting to ₹ 3,500/- and ₹ 2,500/- in favour of Shakun Stationary Mart (totalling ₹ 6000/-) as evidences in support of the contention that the applicant was engaged in charitable activities [by way of distribution of stationary for the new terms for orphaned girls in a Child Care institution for girls (NGO), and by way of giving of Bottles and Tiffin Boxes for orphaned boys in a Child Care institution for Boys (NGO)]. The ld. CIT(E), while granting registration to the assessee under section 12AA of the Income Tax Act; vide order dated 27.04.2018 however, denied the approval under section 80G of the I.T. Act vide a separate order also dated 27.04.2018. Rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vi. The registration u/s 12AA of the I.T. Act, 1961 does not automatically confer any right on the doners to claim deduction under section 80G. vii. The certificate cannot be used as a basis for claiming non deduction of tax at source in respect of investments etc., relating to the Trust/Institution. viii. All the Public Money so received including for Corpus or any contribution shall be routed through a Bank Account and such Bank Account Number shall be communicated to this office. ix. No change in the terms of Deed of the Trust shall be effected without due procedure of law i.e. by order of the jurisdictional High Court and its intimation shall be given immediately to this office. The registering authority reserves the right to consider whether any such alteration in objects would be consistent with the definition of charitable purpose under the Act and in conformity with the requirement of continuity of registration. x. No asset shall transferred without the knowledge of the undersigned to anyone, including to any Trust/Society/Non profit Company etc. xi. The registered offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant submitted that the only reason given by the ld. CIT(E) for denying approval under section 80G of the I.T. Act to the applicant was that the assessee had incurred only ₹ 6,000/- for charitable activities such as distribution of stationary items Bottles and Tiffin boxes for orphan boys. The learned counsel submitted that the applicant had limited financial resources at its disposal because of which it was not possible for the assessee to spend more amount for charitable work. Drawing the attention to the financial statement, the learned counsel submitted that at the relevant time when the ld. CIT(E) rejected the applicant s application for approval under section 80G of the I.T. Act, the total funds available with the applicant (including donations amounting to ₹ 18,000/-) was only ₹ 19,000/- out of which ₹ 6,000/- (excluding bank charges of ₹ 68/-) had already been spent, and that the applicant was left with only ₹ 12,832/-. The learned counsel further submitted that the applicant is facing enormous difficulty in obtaining donations because of denial of approval under section 80G of the Income Tax Act. The ld. Counsel made further reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been filed; 9. This the first application for Registration so no question of any rejection; 10. Contact numbers, e-mail address of the Trustees are enclosed. 11. The Trust requires registration u/s 12A and 80G exemption for receiving donations to fulfil its objects. The 80G Certificate shall be enable the Trust to carry out its charitable activities; 12. The Trust has not incurred any expenditure; 13. Certificate as required regarding infringement of proviso to s.2(15) of the Income Tax Act, 1961 is enclosed; 14. The Trust is existing for relief to the poor, education, medical relief and also advancement of other general public welfare. 15. Copy of PAN card of the Trust is enclosed. 16. ID proof of the main Trustee of the Trust is enclosed. Please refer to the discussions held on the last date of hearing on the above subject. Following further submissions are made: 1. Undertaking from the Founder Trustee with regard to distribution of funds on Dissolution of the Trust; amendment in the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (5) of section 80G shall be in Form No. 10G and shall be made in triplicate. (2) The application shall be accompanied by the following documents, namely:- i. Copy of registration granted under section 12A or copy of notification issued under section 10(23) or 10(23C); ii. Notes on activities of institution or fund since its inception or during the last three years, whichever is less ; iii. Copies of accounts of the institution or fund since its inception or during the last three years, whichever is less. (3) The Commissioner may call for such further documents or information from the institution or fund or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such institution or fund. (4) Where the Commissioner is satisfied that all the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are fulfilled by the institution or fund, he shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure; (v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority; (vi) in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
