TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 175
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....Public Trusts Act, 1950 and Societies Registration Act, 1860. The assessee trust was constituted vide Memorandum of Association dated 15-01-2007. The assessee made first application for registration u/s. 12A of the Act on 01-06-2007. The said application of the assessee was not disposed of by the Commissioner of Income Tax. Despite the fact that the assessee sent reminder to Commissioner of Income Tax on 05-03-2009 to decide the application, the said application remained unattended. In the meantime assessment orders u/s. 143(3) for the assessment years 2010-11 and 2011-12 were passed on 14-03-2013 and 14-11-2013, respectively treating as if registration has been granted to the assessee u/s. 12AA of the Act. The assessee filed second applica....
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....on under Right to Information Act, 2005 to know the status of application filed on 01-06-2007. The Central Public Information Officer (CPIO) vide order dated 21-02-2013 passed under Right to Information Act informed that the application of the assessee for grant of registration u/s. 12A dated 01-06-2007 has not been disposed of. The order dated 21-02-2013 passed under Right to Information Act is at page 98 of the paper book. Thereafter, on 29-05-2013, the assessee made second application for grant of registration u/s. 12A of the Act. The Commissioner of Income Tax sought further information and certain documents from the assessee vide communication dated 14-10-2013. The assessee promptly responding to the queries raised by the Commissioner ....
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....rated by the assessee while carrying out charitable activities is not the relevant factor to determine whether registration u/s. 12A has to be granted or rejected. In support of her submissions, the ld. Counsel for the assessee has placed reliance on the following decisions : i. Chief Commissioner of Income Tax Vs. St. Peter's Educational Society, 385 ITR 66 (SC); ii. Queen's Educational Society Vs. Commissioner of Income Tax, 372 ITR 699 (SC); iii. Visvesvaraya Technological University Vs. Assistant Commissioner of Income Tax, 384 ITR 37 (SC); iv. Director of Income Tax (Exemption) Vs. M/s. Lala Lajpatrai Memorial Trust, 69 taxmann.com 158 (Bombay). 4. On the other hand Shri K.K. Mishra representing the department vehemently suppo....
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.... date. As per the provisions of section 12AA(2) of the Act, the order granting or refusing registration should be passed before the expiry of 6 months from the end of the month in which the application was received. It is a well settled law that if the application for grant of registration u/s. 12A is not disposed of within the stipulated time, it shall be deemed that the registration is granted to the assessee. Recently, the Hon'ble Apex Court in the case of Commissioner of Income Tax and Others Vs. Society for the Promotion of Education (supra) has reiterated this position. 6. The ld. Counsel for the assessee has pointed that during the course of assessment proceedings for assessment years 2010-11 and 2011-12 it was brought to the notice....
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.... been decided. Therefore, deemed registration has been granted to the assessee. The Commissioner of Income Tax ignoring all these facts and the scope of enquiry has rejected the application of the assessee merely on the ground that the assessee has generated surplus of Rs. 50,32,296/- in financial year 2009-10 and Rs. 66,47,645/- in financial year 2010-11 i.e. relevant to assessment years 2010-11 and 2011-12, respectively. The Commissioner of Income Tax has further observed that the assessee has not paid taxes for the said assessment years. Since, the Assessing Officer had accepted that the assessee has been granted deemed registration u/s. 12AA and no demand was raised, there was no question of paying any taxes on the surplus generated by ....
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....da Charitable Trust Vs. Director of Income Tax (Exemptions) (supra) we are of the considered opinion that the Commissioner of Income Tax has erred in rejecting the application of the assessee by merely referring to the quantum of surplus generated by the assessee during the course of charitable activities being carried out. 10. The Hon'ble Jurisdictional High Court in the case of Director of Income Tax (Exemption) Vs. M/s. Lala Lajpatrai Memorial Trust (supra) has held : "16. It is well-settled principle of law that the test to determine as to what would be a charitable purpose within the meaning of section 2 (15) of the Act, is to ascertain what is the dominant object of the activity; whether it is to carry out a charitable purpose or t....