TaxTMI 
TaxTMI 
2011 (5) TMI 574
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....The assessee moved an application, seeking registration under section 12A of the Act on 2.7.2008. In the proceedings which followed, one Ms Vinita Bhimbhat, Managing Trustee & Ms Sucheta Shah, attended the proceedings before the DIT(E) and made submissions in supports of eligibility for registration, but, as noted by the Director of Income tax (Exemption), "failed to produce the certificate of Charity Commissioner". This observation was made by the Director of Income Tax (E) in the background that the assessee is a company registered under section 25 of the Companies Act and the learned Director was of the view that the Charity Commissioner's certificate was a condition precedent for the assessee being granted registration under section 12A....
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....uineness of its activities the condition precedent to grant registration in this case is not satisfied. In view of the above, I refuse to register the applicant trust." 3. The assessee is aggrieved and is in appeal before us. 4. We have heard the rival contentions, perused the material on record and duly considered factual matrix of the case as also the applicable legal position. 5. The grievance of the assesse indeed deserves to be upheld. We find that so far as learned Director's reliance in the case of Bhraman Madhav Murthi Mandal vs Joint Charity Commissioner Maharasthra(supra) is concerned, this judicial precedent only deals with the question as to whether a company, even if it owns property as a trustee in trust for a ....
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.... The learned CIT has also given one more reason that it is not comprehensible as to why not the assessee got itself registered as a society, if the motive of the assessee was to do activities of ublic charity. This reason given by the CIT is found, in our considered view, to be improper. It is not necessary that in order to do public charity, any one association is to be registered as a society or a trust. In the case of CIT vs. Agricultural Produce and Market Committee (supra), the Hon'ble Bombay High Court - Nagpur Bench has held that there is no requirement under the Act that an institution constituted for advancement of any object of general public utility must be registered as a trust. Therefore, in the present case before us, mere bec....