TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 260
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....2.2015 under S.7 of the Companies Act, 2013 read with Rule 8 of the Companies (Incorporation) Rules, 2014, for promotion of charitable objects as per its Memorandum of Association(MOA). The assessee company made applications on 23.3.2015 before the Commissioner of Income-tax (Exemption), in prescribed Form 10 for registration under S.12AA of the Income Tax Act,1961 and in Form No.10G for approval under S.80G of the Act. 3. The Commissioner of Income-tax(Exemption), however, refused to grant registration under S.12AA of the Act. He also simultaneously denied the approval sought under S.80G(5) of the Act on the ground that dissolution clause as specified in the Memorandum of Association (MOA) indicates that there is no intention on the part ....
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....ompany but shall be given or transferred or transferred to some other institution or institutions having objects. similar to the objects of the company to be determined by the members of the company to be determined by the members of the company at or before the time of dissolution and in default thereof by the High Court of Judicature that has or may acquire jurisdiction in the matter" 2.1 A perusal of the said clause indicates that there is no intention on the part of the society to transfer the assets to another society, which is also having registration u/s.12AA of the I.T. Act. 3. Further, as seen from the objectives incidental or ancillary to the attainment of the main objects of MoA, the objective clause (6) is mentioned as under....
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....r the second objection of the Commissioner of Income-tax(Exemption) founded on the incidental objects , which according to the Commissioner revealed the assessee's intention to carry out its activities outside India, the learned Authorised Representative asserted that this objection is also not sustainable in view of the decision of the Mumbai Bench of the Tribunal in the case of Critical Art and Media Practices V/s. Commissioner of Income-tax (Exemption), Mumbai (2015) 153 ITD 644 (Mum) and Hyderabad Bench of the Tribunal in International Bhakti Vedanta Institute Trust V/s. DIT(Exemptions), Hyderabad. (2014) 42 Taxmann. Com.330. 6. Learned Departmental Representative, Shri Siri Kumar, on the other hand, relied upon the order of the Commis....
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....ders of the authorities below. In clause X of Memorandum of Association on page 5 and clause 52 of Articles of Association on page 10, it is clearly mentioned the conditions of windingup/ dissolution, which is reproduced hereunder:- "If upon winding up or dissolution of the company there remains, after satisfaction of all the debts and liabilities any property whatsoever the same shall not be distributed amongst the members of the company but shall be given or transfer to such other company having object similar to the objects of this company, to be determined by the members of this company at or before the time resolution or in default in thereof, by the high court of judicature that has or may acquire jurisdiction in the matter." The....
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....operty whatsoever the same shall not be distributed amongst the members of the company but shall be given or transfer to such other company having object similar to the objects of this company". For this purpose, the assessee shall produce original Memorandum and Articles of Association of the Institution to the ld Commissioner of Income-tax, Jamnagar who will verify the object clause and if upon verification he found that the object clause contained in the aforesaid winding up or dissolution clause, in that event he will grant the registration to the assessee-trust u/s 12AA of the Income-tax Act, 1961. The assessee is an Educational and Charitable Trust and issuance of registration u/s 12AA is a primary condition for the start of the chari....
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.... and Media Practices (supra) is in favour of the assessee. In that case, under similar circumstances, the Tribunal came to the conclusion that registration cannot be denied merely because the assessee's activities are extended outside India. Relevant portion of the said decision of the Tribunal reads as under- "13. Keeping in view of the above submissions, in our view, the second ground on which the registration is rejected needs to be relooked by the Ld. DIT(E). In view of our above observations, we hold that if the activities otherwise are charitable and fall in the definition of charitable purposes as defined under section 2(15) of the Act and further the property is held wholly and exclusively under trust for charitable and religious p....