TaxTMI 
TaxTMI 
2021 (10) TMI 963
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....d has been granted registration U/s 12 A of the Act. 3. The Appellant craves leaves to add, alter or modify the aforesaid ground and craves leaves to file additional grounds. 2. Briefly stated facts of the case are that M/s International Centre for research on Women Ltd. ('ICRW') is a non-profit organisation with the object of promoting social and economic development with women's full participation and is incorporated as a limited company under section 25 of the Companies Act, 1956. The said company is registered for the purpose of section 12AA and section 80G of the Act. The provisions of Payment of Gratuity Act, 1972 are applicable in the case of 'ICRW' and therefore to protect the financial interest of its employees, the 'ICRW' setup this trust namely 'ICRW Group Gratuity Trust' i.e. the assessee. This trust applied for online application on 23/08/2017 in form No.10A before the Ld. CIT(E) for seeking registration under section 12AA of the Act. The assessee filed trust deed and another documents as desired by the Ld.CIT(E). After examination of objects of the trust, the Ld.CIT(E) observed that trust's aims and objectives is only for the worker/employee of the 'ICRW' ....
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....rival submission of the parties on the issue in dispute and perused relevant material on record. As per section 12AA(1)(b) of the Act, for registering the trust or institution, the competent authority must satisfy about the object of the trust or institution and genuineness of its activities. As per section 12AA(1)(a)(ii) of the Act, the competent authority may satisfy about the compliance of such requirement of any other law for the time being in force by the trust or institution, as material for the purpose of achieving its objects. In the case before us, the application for registration under section 12AA of the Act has been rejected by the appropriate authority on the ground that object of the trust is only for the benefit of worker/employee of the company who has created the trust and does not appear to be for the general charitable cause. 6. The assessee has filed a copy of trust deed before us, which is available from page 6 to page 18 of the paperbook. 7. On perusal of the trust deed we find that the managing director of the company 'ICRW', is the managing trustee of the assessee trust. On page 8 of the paperbook, the object of the trust have been recorded as under: ....
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....e community as per old rules of the community staying in Ahmedabad". It is common ground that the word " old rules" do not represent the correct translation of the original word in Gujarati which is Riwaj meaning custom. The learned judges of the High Court also, who are conversant with that language, have proceeded on the basis that the correct rendering of the aforesaid word is custom or usage. That is why according to the High Court the definition comprises two classes of members of Rana caste residing in Ahmedabad, one class consisting of those who are natives of Ahmedabad while the other class consists of such persons who are admitted by the Rana caste according to the old custom or usage of the community. The reason which prevailed with the High Court for treating the second class as not being united with the first class by a common characteristic or attribute was that its members have to be accepted by the community according to the old custom or usage and that the entry of the members of this class into the Rana caste residing in Ahmedabad was dependent on the decision of the caste to (1) 55 I.T.R. 722. (2) 61.T.R. 427. admit them. We are altogether unable to concur in the ....
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.... of a British limited company or any of its subsidiary or allied companies. It was held by the House of Lords by a majority that though the group of persons indicated was numerous, the nexus between them was employment by particular, employers and accordingly the trust did not satisfy the test of public (1) [1945] Ch. 123. (3) [1951] A.C. 297. (2) 27 T.C. 431. 750 benefit requisite to establish it as charitable. This is what Lord Simonds observed - "A group of persons relationship which takes a group nexus between them is their personal relationship to a single propositus or to several propositi, they are neither the community nor a section of the community for charitable purposes". The personal element of personal relationship which takes a group out of sestion of the community for charitable purposes is of the nature which is, to be found in cases of the aforesaid type. We cannot possibly discover a similar element of personal nature in the members of the Rana community who settle in Ahmedabad and have been accepted by the Rana community of that place as members of that community. As regards the acceptance of such persons as m....