9911796707
TMI Blog2025 (3) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration as prayed, kindly be granted. 3. The Id. CIT (Exemption) further erred in law as well as on the facts of the case in denying registration sought u/s. 12AA of the Act on the ground that the appellant failed to obtain registration under the FCRA Act, is legally unfounded and unsupported by the facts on record. Such finding is contrary to the provisions of law and facts on record hence, the Id. CIT (Exemption) Jaipur kindly be directed to grant registration as prayed for. 4. The Id. CIT (Exemption) further erred in law as well as on the facts of the case in denying registration sought u/s. 12AA of the Act on the ground that the appellant failed to satisfy about the genuineness of the activity and that did not fulfil the conditions under the provision. Such finding is contrary to the provisions of law and facts on record hence, the Id. CIT (Exemption) Jaipur kindly be directed to grant registration as prayed for. 5. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing. 2. The brief facts of the case are that the assessee trust applied in Form No. 10AB of the Act vide dated: 30.09.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i), - (A) Pass an order in writing registering the trust or institution for a period of five years; or (B) If he is not so satisfied, pass an order in writing, - (I) in a case referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (v) of clause (ac) of sub- section (1) of section 12A rejecting such application and also cancelling its registration; (II) In a case referred to in sub-clause (iv) or in item (B) of sub-clause (vi) of sub-section (1) of section 12A, rejecting such application, after affording a reasonable opportunity of being heard. 4. The relevant provisions reproduced (supra) in bold and underlined, is an attempt by us to analyze the provision in proper perspective of Law in the light of Judicial Pronouncement of Hon'ble Apex Court, specifically the citations being relied upon by the Ld. CIT (E), Jaipur, i.e. [2012] 20 taxmann.com 46 (A.P.) Aurora Educational Society vs. CCIT, relevant paras are reproduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon by the Ld. CIT (E), Jaipur is from the court of Hon'ble Apex Court as under: [2022] 143 taxmann.com 276 (SC) New Noble Educational Society vs. CCIT, relevant paras are reproduced as under: "It is held that wherever registration of trust or charities is obligatory under state or local laws, the concerned trust, society, other institution etc. seeking approval under section 10(23C) should also comply with provisions of such state laws. This would enable the Commissioner or concerned authority to ascertain the genuineness of the trust, society etc. This reasoning is reinforced by the recent insertion of another proviso of section 10(23C) with effect from 1-4- 2021. [Para 76]" 7. Again referring our considered opinion as discussed (supra) vide para 5, this citation relied upon by the Ld. CIT (E), Jaipur is again w.r.t. an educational institution and our findings (supra) again confirmed. It is also observed that in both the citations discussed (supra) also discussed and relied upon the judicial precedents applicable to educational institutions only. None of the precedents discussed in the case of Aurora Educational Society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered under new Haryana Registration & Regulation of Societies Registration Act, 2012. The Tribunal held that aims and objects of assessee were of general public utility as well as to provide education and were covered by provisions of section 2(15). If the activities of assessee were charitable in nature, registration of assessee couldn't be denied merely on fact that it was not registered under Societies Act. In the light of above, objection of the Ld. CIT (E), Jaipur is dismissed and further directed that registration can't be denied on this ground. In the result relevant ground raised by the assessee is allowed. 10. Another Objection in this appeal is violation of Violation of Foreign Contribution Regulation Act, 2010 (FCRA). We have gone through the Copy of trust deed filed by the assessee vide page 14-30 of the paper book and observed clause 5(25) of the aims and objects of the trust deed, wherein it is provided "To collect and receive donations, contributions, subscriptions, bequest, grant-in-aid, other aid assistance in cash or in kind from the Central/State Govt., Semi-Govt. authorities, public undertaking banks, financial institutions, boards, public and private ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, any additional foreign contribution, without prior approval of the Central Government: Provided further that if the person referred to in sub-section ( 1) or in this sub-section has been found guilty. (3) Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, specify-(i)the person or class of persons who shall obtain its prior permission before accepting the foreign contribution; or(ii)the area or areas in which the foreign contribution shall be accepted and utilised with the prior permission of the Central Government; or(iii)the purpose or purposes for which the foreign contribution shall be utilised with the prior permission of the Central Government; or(iv)the source or sources from which the foreign contribution shall be accepted with the prior permission of the Central Government. 12. Considering the provisions of relevant statute mentioned (supra), we restore the matter back to the file of the Ld. CIT (E), Jaipur and simultaneously directed the assessee trust to incorporate the relevant amendment in the trust deed mentioning that prior to receiving any foreign remittance whatever may be the form or nomencla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e genuine in the sense that they are in line with the objects of the Trust. In contrast, the position would be different where the Commissioner proposes to cancel the registration of a Trust under sub-section (3) of section 12AA. There the Commissioner would be bound to record the finding that an activity or activities actually carried on by the Trust are not genuine being not in accordance with the objects of the Trust. Similarly, the situation would be different where the trust has before applying for registration found to have undertaken activities contrary to the objects of the Trust. [Para 12]" [2012] 25 taxmann.com 376 (Del.) DIT vs. Foundation of Ophthalmic & Optometry Research Education Centre Facially the provision of section 12AA would suggest that there are no restrictions of the kind which the revenue is reading into in the instant case. In other words, the statute does not prevent or enjoin the Commissioner from registering a trust based only on its objects, without any activity, in the case of a newly registered Trust. The statute does not prescribe a waiting period, for a trust to qualify itself for registration. [Para 10] If the revenue's contentions are co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) CIT (E) vs. Rural Education and Women Welfare Society Sas Nagar held as under: "4. The Tribunal has noticed that the assets of the assessee, i.e., its land and building etc. had been created out of the donations received for the setting up of the school of the society and the objection of the CIT(E) that the assessee had amassed capital funds to the tune of Rs. 5.59 crores and fixed assets to the extent of Rs. 5.85 crores neither impinged on the objects nor the genuineness of the activities of the assessee. The object of the society is 'To Promote the Quality and Scope of Education in Rural Area and manage the affairs of Sadhu Singh Rural Public School, Mukand Pur.' Therefore, the contention of the assessee that the corpus got created from such donations as received for the setting up of the school had not been rebutted by producing any material to the contrary on record. Regarding creation of assets, the Tribunal had recorded nothing had been brought on record to show that the assets of the assessee were meant for any purposes other than its aims and objects which included managing the affairs of the school and that as per the balance sheets, the entire expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant allegedly being on creation of assets, rather than, on deployment of funds for education, does not render the claim for registration untenable, inasmuch as, even if this observation is taken, for the sake of argument to be correct, despite there being no basis for it spelt out in the order, nothing has been brought on record that the assets of the applicant are meant for any purposes other than its avowed aims and objects, which include managing the affairs of the school. Too it has not been refuted that as seen from the three balance sheets filed by the applicant, the entire expenditure incurred by it, has been for the purposes of the school only. Then, the assets of the applicant have also not been shown to be existing, much less utilized, for any purposes other than that of the school. Further, once again, as to how the question of application of income is germane to the grant of registration, is not evincible from the order." 5. In view of the above, no illegality or perversity could be pointed out by the learned counsel for the appellant-revenue which may warrant interference by this Court. No question of law, much less, the substantial question of law arises in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
