TaxTMI 
TaxTMI 
2015 (9) TMI 707
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....dment to the trust deed is carried out through civil court. 2. There is a delay of 587 days in filing the aforesaid appeal. The assessee has filed a petition seeking condonation of delay, explaining the cause of delay. The learned authorised representative submitted before us, after the order was passed, the assessee approached the civil court. He submitted, in pursuing the matter before the civil court considerable time was spent which resulted in delay in filing the aforesaid appeal. The learned authorised representative submitted, as the delay is caused due to bona fide reason and not due to inaction, negligence or laches on the part of the assessee it may be condoned. The learned Departmental representative opposed the condonation of d....
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....ax Appellate Tribunal, the learned Director of Income-tax (Exemptions) initiated proceedings again. 5. In course of the proceedings, the assessee submitted the amended trust deed and other documents to demonstrate that activities of the trust are confined to within India. The learned Director of Income-tax (Exemptions), however, was not convinced with the explanation of the assessee. He was of the view that any amendment to the trust deed has to be through civil court having jurisdiction over the matter. In this context, he relied upon a decision of the hon'ble Supreme Court in case of CIT v. Kamla Town Trust [1996] 217 ITR 699 (SC). Thus, the learned Director of Income-tax (Exemptions) held that only after the assessee carries out suc....
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....mendment to trust deed. 8. We have considered the submissions of the parties and perused the orders of the Revenue authorities as well as other material on record. We have also applied our mind to the decisions relied upon by the parties. As can be seen, the assessee is not only registered under section 12AA of the Act, but, in the impugned order the learned Director of Income-tax (Exemptions) has, in fact, granted approval under section 80G(5)(vi) to the assessee, though, putting a condition that such approval will be effective from the date of amendment to the trust deed is approved by civil court having jurisdiction over the matter. Therefore, there cannot be any dispute to the fact that not only the assessee's objects and activitie....
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....on or fund derives any income, such income would not be liable to inclusion in its total income'. Thus what is to be seen is whether any income would not be liable to inclusion in its total income and not whether because of certain defaults prescribed in section 11 or 13, the trust is not actually held eligible for exemption under sections 11 and 12 of the Act. Once the condition laid down in rule 11AA as also in sub-clauses (i) to (v) of sub-section (5) of section 80G are complied with, the trust is, eligible for registration under section 80G(5)(vi) of the Act. 14. In this case, the approval under section 80G of the Act was denied by the Director of Income-tax (Exemptions) only on the reason that the object clause contains the claus....
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.... matter. In our view, such observation of the learned Director of Income-tax (Exemptions) is not strictly in compliance to the directions of the Income-tax Appellate Tribunal in the order dated February 3, 2012. It is also relevant to note that the learned Director of Income-tax (Exemptions) is also satisfied that the assessee is eligible for approval under section 80G(5). As far as the decision of the hon'ble Supreme Court in the case of CIT v. Kamla Town Trust [1996] 217 ITR 699 (SC), it is relevant to mention that the hon'ble Andhra Pradesh High Court in the case of DIT (Exemptions) v. Ramoji Foundation [2014] 364 ITR 85 (AP) taking note of the said decision has held that in a case where the trust is empowered under the trust dee....