TaxTMI 
TaxTMI 
2020 (7) TMI 278
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....the impugned order dated 30.09.2019 passed by the Commissioner of Income - tax (Exemption), New Delhi on the grounds inter alia that :- "1. That the Ld. CIT has erred in rejecting the application filed by the Welfare Fund u/s 12A (a) of the Income Tax Act. 2. That the Ld. CIT has erred in holding that the applicant has not established genuineness of the activities of the fund when the memorandum and other documents clearly established the same. 3. That the Ld. CIT has erred in denying the approval u/s 80G of the Act holding that the charitable activities of the Fund could not be substantiated when the activities of the fund were apparent form the memorandum." 2. Assessee by filing separate application sought to....
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....Undisputedly, section 23 of the Advocates Welfare Fund Act, 2001 provides that notwithstanding anything contained in the Income Tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on income, profits and gains, the income accrued to the fund constituted under sub-section (1) of section 3 shall be exempt from income-tax. 7. The ld. AR for the appellant contended inter alia that the appellant, being a charitable institution, is entitled for registration u/s 12AA as well as exemption u/s 80G of the Act but the ld. CIT(E) has erred in rejecting the application illegally on the ground that balance sheet and income & expenditure account for AY 2018-19 were not furnished; that the ld. CIT (E) is only to ....
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....ineering Educational Society 315 ITR 428 (Uttaranchal), CIT vs. A.R. Trust 402 ITR 161 (Allahabad), Shri Nathji Education Foundation vs. CIT ITA No.809/LKW/2014, Self Employers Service Society vs. CIT 247 ITR 18 (Kerala) and Kirti Chand Tarawati Ch. Trust vs. DIT 232 ITR 11 (Delhi). 9. Ld. CIT (E) vide impugned order has rejected the registration sought for by the appellant u/s 12AA and section 80G of the Act on the sole ground that financials for FY 2018-19 have not been furnished despite called for. It is the case of the ld. AR for the appellant that it is not a valid ground to reject the application moved by the appellant. So, now the question arises for determination in this case is :- "as to whether appellant, Advocate Welf....
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.... exempt from any tax liability u/s 11 of the Act. Operative part of the judgment (supra) is extracted for ready perusal as under :- " In other words, the dominant purpose of a State Bar Council as reflected by the various obligatory functions is to ensure quality service of competent lawyers to the litigating public, to spread legal literacy, promote law reforms and provide legal assistance to the poor while the benefit accruing to the lawyer members is incidental. It is true that sub s. (2) provides that a State Bar Council may constitute one or more funds for the purpose of giving financial assistance to organise welfare schemes for the indigent, disabled or other advocates ; but it is an optional or discretionary function to be ....
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....haritable within the meaning of section 2(15) of the Act as has been held by Hon'ble Apex Court in the identical facts and circumstances in a case of Bar Council of Maharashtra (supra), further scrutiny of the financials of the appellant are not required because it is otherwise within the purview of AO to examine at the time of assessment if the appellant is entitled to exemption u/s 11 of the Act. 14. Hon'ble Kerala High Court in Sree Anjaneya Medical Trust vs. CIT 382 ITR 399 held that, "no examination of modus of the application of the funds of the trustee committee or an examination of the ethical background of its settler is called for while considering an application for registration. The stage for consideration of the releva....
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....ncement of charitable activities, registration u/s 12AA of the Act cannot be denied because the statute does not prohibit or enjoin the Commissioner from registering a trust solely based upon its objects without any activity in case of a newly registered trust. 17. In view of the matter, we are of the considered view that the ld. CIT(E) has erred in declining the registration u/s 12AA of the Act on the ground that financials of FY 2018-19 have not been furnished by the appellant." 11. Furthermore, the appellant had furnished financials of FYs 2016-17 & 2017-18 but the ld. CIT (E), without making any adverse findings on the same, proceeded to reject the registration on the ground that financials of FY 2018-19 have not been furnis....