AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (9) TMI 909
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....gistration, the very foundation of registration having been removed by voluntary act of the assessee. The registration does not survive." 3. The respondent assessee is a Trust registered under section 12A of the Act and is carrying out charitable activities for more than 40 years as it has been set up vide Trust Deed dated 19/3/1969. In the return of income filed for the assessment year under consideration assessee claimed exemption under section 11/12 of the Act. The Assessing Officer has denied the exemption under section 11/12 to the assessee on the ground that the objects of the assessee Trust have been amended after the grant of Registration under section 12A of the Act without getting itself re-registered with the Director of Income Tax(Exemption) under section 12A of the Act after such amendments in the objects. As a consequence of the denial of exemption under sections 11/12 of the Act the gross total income of the assessee determined at Rs. 16,46,14,071/- was held to be taxable income. 4. The CIT(A) however, set aside the order of the Assessing Officer and concluded that the denial of exemption under section 11/12 of the Act was not justified, having regard to the facts....
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....der, wherein reliance has been placed on the judgement of the Hon'ble Allahabad High Court in the case of Allahabad Agricultural Institute & Another vs. Union of India And Others,291 ITR 116(All) to contend that where the objects of the Trust or institution, which were the basis for registration have been altered after grant of such registration, the registration granted would not survive. 6. On the other hand, Ld. Representative for the assessee vehemently defended the order of the CIT(A) by pointing out that the change in the objects in the present case does not cause any wholesale change in objects so as to defeat the charitable purpose of the Trust. He pointed out that assessee continues to be registered with the DIT(Exemption) under section 12A of the Act and on the basis of such registration its recognition under section 80G of the Act has been renewed every three years and that even after amendments carried out in the Trust Deed in 1975 and 1979 the Assessing Officer in scrutiny assessment for the assessment years 2004-05,2007-08 and 2008-09 allowed the exemption under section 11/12 of the Act. Ld. Representative for the assessee also relied upon the decision of the Mumbai ....
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....ted 27/11/1973. 7.2 There is no denying the fact that so far as the objects contained in the original Trust Deed dated 19/3/1969 are concerned, they are charitable in nature because not only assessee was granted registration under section 12A of the Act on 27/11/1973 but it has also been allowed exemption under section 11/12 of the Act. The moot question is as to whether assessee can be said to be a charitable institution even after the amendment to the Trust Deed dated 20/3/1975 and 19/7/1979. The aforesaid point is relevant because in the impugned order of assessment there is no finding by the Assessing Officer that the activities added in 1975 and 1979 do not fall within the purview of charitable purpose. In fact the only basis for the Assessing Officer to have denied the exemption under section 11/12 of the Act is the failure of the assessee to intimate the amendments of 1975 and 1979 and reregister with the DIT(Exemption) for the purposes of section 12A of the Act. The registration granted to the assessee under section 12A of the Act can be cancelled only as per the statutory requirements, which prescribe that either the activities being carried out are not genuine or that th....
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....e original deed in the context of giving donations to hospitals and charitable dispensaries, etc. This aspect was extended in the amendment of 1975 to include running and managing of hospitals, Panjarapoles, etc., notably, in the original Trust Deed also, objects of the assessee included the sphere of schools, colleges, educational institutions, etc. 7.6 Thirdly, in the original Trust Deed the assessee envisaged help by way grants and contributions to institutions carrying on the work of public charitable purpose in India. In the amendment made in 1975 such activities was supplemented by incorporating the activity of giving loans alongwith the activity of giving grants and contributions to institutions carrying on work for public charitable purposes in India. 7.7 Lastly, in the original Trust Deed assessee was having activity of providing grants and contributions to institutions established for carrying on an object of general public utility not involving an activity for profit. In the amendment made in 1979, it was incorporated that assessee would also promote rural development, including the programme of promoting socio and economic welfare and up-lift in rural areas. 7.8 In t....
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....therein. In the case of Board of Control for Cricket in India (supra), the Tribunal found the amendments to the Memorandum of Association as being substantive, which included amendment of rules and regulations providing for promotion of commercial interests towards administration of IPL Championship League, etc. Quite clearly in the present case, there is no such fact situation and for that matter, there is no charge against the assessee that the amendments of 1975 and 1979 have resulted in carrying on of any commercial activity by the assessee. Rather, in the present case, in the assessment finalized u/s. 143(3) of the Act on 7/11/2006 for assessment year 2004-05, the Assessing Officer allowed exemption to the assessee under section 11/12 of the Act. While doing so, the Assessing Officer has specifically noted that the activities of the assessee are in the field of education and health and running of Angadwadies in 600 villages and five High Schools with hostel facilities in backward areas. It was also specifically noted that the Trust was running 190 bedded General hospital at Dissa, where poor people were being treated. Similarly, in the assessment order for assessment year 2007....