TaxTMI 
TaxTMI 
2016 (9) TMI 1064
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....nsfer. Thus, a notice was issued to the assessee vide letter dt.20.01.2015, fixing the case for hearing on 23.02.2015 and asking the assessee to produce its original Memorandum of Association (MoA) for verification and furnish detailed information on specific points. 3. The CIT(E) noted that as per the MoA in the case of the assessee, it has got 16 objects. CIT(E) raised query on the nature of the objects and classification of the same under different heads such as Medical relief, Education & Relief of poor etc. Assessee filed reply filed vide letter dt.23.02.2015, wherein it was submitted that object No. 4 falls under Religious, objects nos.5, 8, 12 & 15 fall under Education. It was stated that object no.16 falls under Medical and object nos.6, 9 & 14 fall under Relief of the poor. It was submitted that the remaining object nos. 1, 2, 3, 7, 11 & 13 fall under General Public Utility. CIT(E) observed that the explanation is not satisfactory and hence, not acceptable. The CIT(E) observed that in fact, from those 16 objects as per the MoA, (English translation of which was filed during the course of assessment proceedings), it is noticed that the dominant objects in the case of the a....
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....case of the assessee society is spreading of Christianity, which is of religious nature. Under these circumstances, the actual purposes and also the main object in the case of the assessee are not verifiable, and hence, having regard to the provisions contained in Sec.12AA(1(b) of the Act read with subclauses (i) & (ii) there under, the assessee in this case, in CIT(E)'s view, is not eligible for registration u/s.12AA. 3. 3 In view of the above observations, the CIT(E) rejected the application filed by the assessee in Form No. 10 seeking registration u/s 12AA of the Act. As such, the other application in Form N0. 10G filed by the assessee for approval u/s.80G(5)(vi) is also rejected. 4. Aggrieved with the above order, the assessee is in appeal before us raising the following grounds of appeal: 1. On the facts and circumstances of the case, the learned Commissioner of Income Tax (Exemptions) Hyderabad grossly erred in rejecting the application for registration u/s 12AA of the Income Tax Act, 1961. 2. The learned Commissioner of Income Tax (Exemptions) Hyderabad, has erred in rejecting the application on the ground that the dominant objects of the society are not ascertainable....
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....ilitate training in Agriculture, Animal breeding, Milk, Poultry, Fisheries Industries and to strive for development of the same. I) To strive for establishing Primary, Middle, Higher Education and Technical Education Establishment and to strive for the development of the same. m) To undertake the program of plantation of trees and strive for the development of trees. n) To strive for housing, roads, water sources development, electricity, sanitation programmes in the village. o) To strive for the welfare of physically handicapped people by establishing Ashrams for them. p) To strive for ensuring good health to the Cattle by providing Medical facilities in the Villages. Ld. AR submitted that all the above objects fall within the definition of Section 2 (15) of the Income Tax Act. 5.1 The ld. AR stated that the Id. Commissioner of Income Tax (Exemptions) Hyderabad has not commented anything adversely about the Charitable nature of the objects of the society. The Id. Commissioner of Income Tax (Exemptions) Hyderabad simply stated that the dominant objects of the society are not ascertainable on one hand and on the other hand the dominant activity in the case of the assessee soci....
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....nefit of exemption in terms of section 11 and 12 is a question which has to be examined by the assessing officer at the stage when it is urged and not by the CIT when such question is not before the CIT. It is hereby clarified and emphasized that while registration in accordance with the provisions of section 12A by itself, will not automatically confer the benefits of section 11 and 12 on a trust, but the trust will get the benefit only on complying with the requirements of sections 11 and 12 of the Act, which compliance can be examined by the assessing authority, while processing the return filed by the trust. 5.5 Ld. AR stated that hence it is not in the purview of the Id. Commissioner of Income Tax (Exemptions) Hyderabad to check and verify the expenses at the time of granting the registration u/s 12AA of the Income Tax Act, 1961, which act falls under the purview of the Assessing Officer. Even for argument sake, if the checking of the expenses and income falls under the purview of the Commissioner of Income Tax (Exemptions) Hyderabad, at the time of granting the registration u/s 12AA of the Income Tax Act, then also the income pointed out by the Commissioner of Income Tax (E....
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....ply to the facts of the case on hand. The department has not brought any contrary decision to our notice. In our opinion, in the circumstances under consideration, the DIT (E), should not have rejected the application of the assessee for registration u/s 12AA of the Act on this reason . ........ (Emphasis supplied)" 5.7 In addition to the above the ld. AR relied on the following case laws: 1. CIT v Jaipur Charitable Trust 811TR 1 (Del) 2. Zenith Tin Works Charitable Trust V ITO 102 ITR 119 (Bombay) 3. CIT V Ahmedabad Rana Caste Association 88 IATR 354 (Guj) 4. CIT v Chandra Charitable Trust 294 AITR 86 (Guj) 6. On the other hand, ld. DR relied on the order of the CIT(E) as well as relied on the decision of the ITAT Cochin Bench in the case of Tellicherry Minority Welfare Trust Vs. CIT, ITA No. 137/Coch./2009, dated 29/04/2011. 7. Considered the submissions of both the parties and perused the material facts on record as well as the order of CIT(E) and case laws submitted before us. There is no dispute that the assessee has mixed objects thereof charitable as well as religious. But the fact is that the CIT(E) has refused to grant registration because he has analysed o....