TaxTMI 
TaxTMI 
2017 (3) TMI 671
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....ation for registration U/s 12AA as this is bad in law and liable to be quashed. 2. The ld. CIT(E), Jaipur is not justified in considering the trust as a cooperative society and rejecting the application for registration based on the same fact. 3. The ld. CIT(E) has erred in making rejecting of application for registration based on incorrect understanding of objectives and activities of the trust as this is bad in law and liable to be quashed. 4. The aforesaid grounds are mutually exclusive and without prejudice to each other." In ITA No. 187/JP/2016 and 189/JP/2016, the grounds of appeal are also as above. Grounds of ITA No. 186/JP/2016 "1. In the facts and circumstances of the case and in law, the ld. CIT(E), Jaipur has erred in rejecting the application for registration U/s 80G as this is bad in law and liable to be quashed. 2. The aforesaid ground is mutually exclusive and without prejudice to each other." In the other appeals i.e. ITA No. 188/JP/2016 and 190/JP/2016, the assessees have taken identical grounds mentioned above. 4. Briefly stated facts of the case are that these assessees have filed applications in Form No. 10A seeking registration U/s 12AA of the A....
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....s achieved by providing support to poor women in different SHGs in terms of helping them with get Bank Credit and providing training/education and services to improve their livelihoods. 1.1.ii The benefit is not limited to the members of the appellant trusts. On the contrary the beneficiaries are public at large. The concept of Self Help Groups has been explained above. There is no limit of Self Help Groups affiliated to the appellant trusts. Mentioned below are the details of SHGs which are affiliated/registered with the trusts and its Members to whom benefit of the efforts of the appellant trust percolates. Appellate Trust No. of SHGs Associated/ Affiliated No. of Members Paper Book KMM 164 1,977 PB-I, Pg. :32-35 CMM 155 1,863 PB-I, Pg.: 22-24 JMM 151 1,758 PB-II, Pg. : 15-17 1.1.iii The Trust always motivates poor women to form SHGs. 1.1.iv When these women are empowered, educated and trained vocationally the benefit is passed on to their family including children. Thus, the benefit multiplies and society at large is benefited. 1.1.v Ld. CIT(E) failed to appreciate the modern concept of empowering women through formatio....
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....bers at Self Help Groups buying individually. The markup is to recover the cost incurred by the trusts. 1.2.iii Merely because a charitable institution established for the purpose of upliftment of the rural women was making surplus from the current income. It cannot be assumed that these were formed with the object of earning profit and that its activity is commercial in nature. Reliance is placed on the ratio laid down by the Hon'ble Supreme Court in the case of Peter's Educational Society(2016) 287 CTR (SC) 132. In this order, Hon'ble Supreme Court followed its own judgment in the case of Queen's Educational Society (2015) 275 CTR 449 (SC). 2. It is submitted that where the purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of charitable purpose would be fully satisfied even if an activity for profit is carried on in the course of the actual carrying out of the primary purpose of the trust or institution. Hon'ble Karnataka High Court in the case of Gayatri Women Welfare Association (1993) 203 ITR 389 (Kar) held that the trust was a charitable institution and was entitled to exemption under section 11.In this....
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....nefit. In view of the above, ld. CIT(E) may be directed to grant registration under section 12AA to all the appellate trusts. Regarding registration U/s 80G the ld. AR of the assessee has submitted that in view of the submissions made above and owing to the activities carried out by the appellant trusts, they are entitled to registration under section 12AA. As a result they are also entitled to registration under section 80G. In view of the above, ld. CIT(E) may be directed to grant registration under section 80G to all the appellate trusts. 6. At the outset, the CIT DR has vehemently supported the orders of the ld. CIT(E) and prayed to confirm the orders passed by him in all the appeals. 7. We have heard the rival contentions of both the parties, perused the material available on the record and also gone through the order of the ld. CIT(E). In this case, the assessee trust filed an application for registration U/s 12AA of the Act. Registration U/s 12AA is being granted when the competent authority satisfies itself about the objects of the Trust or Institution and genuineness of activities of the same. The aims and objects of this assessee trust are as under:- The ld. AR of t....