TaxTMI 
TaxTMI 
2021 (2) TMI 815
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....h a delay of 5 years and 10 months without any supporting evidence and instrument of formation of the Society and bye-laws. There was no response to the letters issued to the Society for production of the instrument of creation for the Society. The Society also did not file the instrument of creation of Society reflecting the bye-laws. A letter dated 05.04.2007 was sent to the assessee seeking the above details and the activities of Trust, donations, donors, etc. Since there was no response inspite of opportunity, the order dated 24.07.2007 was passed rejecting the application for registration based on the materials available on record as the Deed/Bye-laws did not have the necessary Clauses as enumerated in Page - 1 of the CIT order, which ....
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.... Income Tax Act? 3.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the mode of application of income, and funds and the mode of investment for the Society could be locked into only for assessment purposes and not at the time of considering the application for registration, overlooking the clear mandate provided in Section 12AA of the Income Tax Act?" 4.Mr.J.Narayanasamy, learned Senior Standing Counsel appearing for the appellant - Revenue submitted that the Hon'ble Supreme Court in the judgment reported in (1996) 84 Taxman 248 (SC) [Commissioner of Income-Tax Vs. Kamla Town Trust] held that the amendments to the Bye-laws/Deed will have only prospective effect and....
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....e Trust stands registered for the last ten years in pursuance of the impugned order of the learned Income Tax Appellate Tribunal. It was also open for the Revenue Authorities to take steps for cancellation of the registration, if there was any material against the Assessee Trust or they have violated the conditions of registration or the provisions of the Act in any manner. That course is even now open to the Revenue Authorities. We do not find any useful purpose to be served by now remanding the case back to the learned Commissioner of Income Tax to consider the said application under Section 12A of the Act afresh at this stage, as the said registration already stands granted about ten years back and therefore, we dispose of the present ap....
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....strument the assessee-trust is entitled to get its income exempted from tax under the relevant provisions of the Income-tax Act. In such proceedings, therefore, the order granting rectification of such instrument of trust would remain relevant. The Income-tax Officer will have to take the instrument as it exists in its amended form when it is pressed in service for framing the assessment concerning the relevant assessment year in which such rectified instrument holds the field. The assessee was a trust created by a trust deed dated October 27, 1941, executed by a company which had its registered office at Kanpur. The objects of the trust deed were to construct a settlement or colony for their workmen together with amenities in the shape o....
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....se 2(b)(iv) empowered the trustees to erect such other works, building and installations as the trustees may in their discretion think fit to provide for the advancement of any other similar object of general public utility. The Income-tax Officer issued notices to the assessee under section 34 of the Indian Income-tax Act, 1922, and section 148 of the Income-tax Act, 1961, for the assessment years 1949-50 to 1965-66. The assessments were completed. On appeal, the Tribunal dismissed the assessee's appeals for the assessment years 1949-50 to 1955-56 but allowed those for the assessment years 1956-57 to 1965-66 subject to the rider that the income derived from the trust property by the assessee would be exempt only within the limit perm....
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.... both sides, rejected the case of the assessee following the judgment of the Hon'ble Supreme Court of India in the case of Commissioner of Income-Tax Vs. Kamla Town Trust reported in (1996) 84 Taxman 248 (SC) and held that the rectification shall not have retrospective effect and would operate prospectively from the date when the rectification saw the light of the day. However, the Tribunal erroneously allowed the appeal observing that the order passed by the Hon'ble Supreme Court pertains to a Trust and the same is not applicable to the assessee's case which is a Society. The finding of the Tribunal cannot be sustained for the reason that the Tribunal should have only followed the principle laid down by the Hon'ble Supreme ....