TaxTMI 
TaxTMI 
2008 (9) TMI 467
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.... on large organisations" proposed to be undertaken by the appellant. (iii) that the appellant is a new entity waiting for funds to commence their operations and the funds would be available only after securing registration. (iv) Thus the order of the Director of IT is vitiated as it does not evidence that any of the above features were properly analysed and dealt in the determination of the issue. Further, it also reveals that the impugned order suffers from non-application of mind. On this ground alone the impugned order is liable to be set aside. (v) The Director of IT ought to have not come to an erroneous conclusion that the appellant did not commence activities, when such an issue was never raised either in the notice dt. 24th Sept., 2007 or thereafter at the time of personal hearing and subsequently also. Thus rejecting the application on a ground, which was never raised during the entire proceedings of consideration of the appellant's application would clearly amount to violation of principles of natural justice. Further, even the letter dt. 7th Sept., 2007 of the Director, which sought for additional information, was very quiet about issues such as vagueness in object cl....
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....on under s. 2(15) for the reason that research studies are undertaken as an object of general public utility. It was contended before the learned Director of IT (Exemptions) that the result of the research studies are proposed to be published in appropriate academic and management forums. The object of the appellant is to promote globally, a distinctive "Indian perspective of the aspects of business-to-business markets". The beneficiaries of the research studies are the stakeholders namely, the members of ISBM, the sponsors, the trade and industry, the academia consisting of faculty and research students. Such benefits would flow to the public at large without any discrimination, caste, creed or colour. 4. The learned Director of IT (Exemptions) in para 4 of his order has mentioned that the applicant has made a claim for registration under s. 12A, being an institute imparting education. It was further observed that the activities have not begun. As per the learned Director of IT (Exemptions). the purpose of the research is also not clear. It is also not clear as to who will be the beneficiaries of the research. The objects as per the memorandum of association are general and not a....
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....SBM-India plans to offer Ph.D. level programmes in business to business marketing. Such programmes would also be conducted electronically by some of the world's leading scholars so that world-wide access is provided to the doctoral students doing research carriers in business to business marketing. In league with ISBM, USA, ISBM-India would also conduct MBA, executive MBA and other related academic courses to the executives already in employment so that their experience and the academic research of ISBM could be blended for the benefit of the trade and industry at large. The learned Authorised Representative submitted that registration under s. 12A was sought by placing reliance on the fact that research studies are undertaken as an object of general public utility. The definition of charitable purpose as contained in s. 2( 15) of the IT Act includes advancement of any other object of general public utility. The learned Authorised Representative therefore argued that the learned Director of IT (Exemptions) was not justified in rejecting the application by considering that the object of the institute is only education. The learned Authorised Representative thereafter drew our attent....
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.... Hanumanthe Gowda Charitable Trust vs. Director of IT (Exemptions) (2006) 203 CTR (Kar) 533 : (2006) 285 ITR 327 (Kar) had an occasion to consider the scope and nature of enquiry to be conducted by the CIT at the time when the application for registration is to be considered. The CIT on receipt of an application for registration is required to call for such documents or information from the applicant in order to satisfy himself about the genuineness of the activities of the trust or institution. The CIT is not to look into the source of income but he has to see whether such income is applied for charitable or religious purposes. The satisfaction of the CIT should be regarding the application of the income of the trust for the religious and charitable purposes, which only entitles the assessee to claim exemption. For arriving at such satisfaction primarily, he has to look at the objects of the trust, when the same is reduced into writing in the form of trust deed. If on the date of the application the trust has received income from its property, then the CIT has to find out how the said income has been expended and whether it can be said that the income is utilised towards charitabl....