TaxTMI 
TaxTMI 
2011 (3) TMI 352
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.... of Bombay Public Trust (BPT) Act. The assessee had however not filed any fresh application for registration under section 12A which had been granted only with respect to the original objects. In view of the changes in the objects, the original registration under section 12A did not survive. Reference was made to judgment of Hon'ble High Court of Allahabad in case of Allahabad Agricultural Institute v. Union of India [2007] 291 ITR 116/163 Taxman 67. The DIT(E) therefore asked the assessee to explain as to why the application for grant of approval under section 80G should not be rejected. The assessee explained that the trust had been created in 1945 when the BPT Act had not been enacted. The trust had been formed with the object of running a Vidhyarthi Bhavan (Hostel) for accommodating the students belonging to the Modh community. After demise of the original trustees, the new trustees thought it fit to open admission to all the students without any reservation as to caste and creed. The scheme was therefore prepared in consultation with the Charity Commissioner and the new objects approved by the Charity Commissioner were incorporated in the trust deed which read as under : &n....
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....to alter the objects in the trust deed itself. (b) once a trust had been founded with certain objects, those objects could not be deleted even by the founder of the trust though it was possible to add some other charitable objects without any detriment to the original objects. (c) the object of the trust can be amended with the approval of the Hon'ble High Court." 5. It was thus clear that the objects could not be added or deleted except under the above circumstances. The assessee had also not complied with the requirement in the statutory form No. 10A as per which the assessee had to give an undertaking to communicate forthwith any alteration in objects of the trust or in the rules governing the institution. This undertaking was also not fulfilled and change was intimated only after 15 years vide letter dated 23-12-2009. The intimation was given only after the show cause was issued by the DIT(E). He did not accept the plea of the assessee that the registration granted under section 12A could be cancelled under section 12AA(3) only if the activities of the trust were not genuine or were not been carried out in accordance with the objects of trust. ....
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....al changes made in the objects of trust. As regards the intimation regarding changes in the objects, as provided in the form No. 10A, it was submitted that the assessee was not aware of the said provision. Moreover it was also pointed out that there was no time limit prescribed for intimating the changes and therefore there was no violation of the provisions as the intimation was ultimately given. It was further pointed out that there were no statutory provisions for such intimation and intimation was mentioned only in the form No. 10A. It was submitted that rule could not go beyond the law. Reliance was placed on the judgment of Hon'ble High Court of Madras in case of M.C.T. Muthiah Chettiar Family Trust v. 4th ITO [1972] 86 ITR 282. The trust had otherwise been found in order as observed by DIT(E) himself and the registration under section 12A having not been cancelled, the claim of the assessee of renewal under section 80G could not be rejected. The Learned AR placed reliance on the following judgments in support of the case : (i) In case of Asstt. CIT v. Surat City Gymkhana [2008] 300 ITR 214/170 Taxman 612 (SC) (ii) Bharatia Vidhyapeeth v. ....
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....en submitted that there was no statutory requirement of intimating the changes. The requirement of intimation was provided only in the form No. 10A which was not a statutory requirement. Therefore registration could not be denied only for not intimating the changes. It has also been submitted that even after changes the objects remained charitable and there was no changes in the original object which was only enlarged and made applicable to all students. Moreover it has also been pointed out that registration granted under section 12A had not been cancelled and was still in force and therefore the assessee was entitled for renewal of exemption under section 80G. 9. We have considered the various aspects carefully. The objects in this case had been changed under section 50A(1) of the BPT Act. We have perused the said provisions. Under section 50A(1), the Charity Commissioner either on his own or on an application made in writing by two or more persons having interest in a public trust and after giving the trustees an opportunity of being heard can frame a scheme for management or administration of such public trust. Thus section 50A(1) empowered the Charity Commissioner only for ....
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.... held that the registration granted under section 12A was not valid and thus did not grant exemption under section 11 of the Income-tax Act. The decision of the Assessing Officer was challenged in a writ petition under article 226 of the Constitution. The Hon'ble High Court noted that there were wholesale changes in the objects. The number of objects had been increased to 14 from 6 objects in the original deed. The High Court also observed that the trust could not show that the revised objects were practically the same or were charitable. It was under these circumstances that the writ petition of the assessee was dismissed. It was held that the order of Assessing Officer did not call for interference by the court in the exercise of equitable and discretionary jurisdiction under article 226. The case of the assessee is different. There were practically no changes in the objects. The original object of providing hostel accommodation remained the same. Only the scope was enlarged to all students. The only new object was medical aid to poor which was also charitable. Thus the objects continued to be charitable. Therefore the judgment of Hon'ble High Court of Allahabad relied upon by th....