TaxTMI 
TaxTMI 
2022 (1) TMI 1446
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....de amendment in its object clause by inserting two new objects for which no prior permission was sought from, nor any intimation was given to the Commissioner of Income-tax (Exemption). Further, the assessing officer observed that assessee was formed for benefit of a particular community and thus attracted section 13(1)(d) of the Act. When the assessee was called upon to explain why exemption under section 11 should not be withdrawn, in response, assessee submitted that the new objects were in line with the main objects of the trust, i.e. to carry on activities for the benefit of Daivadnya Community and there was no provision in the Act for seeking prior permission or intimation for changes in the object clause. After considering the submissions of the assessee, assessing officer rejected the contentions of the assessee and he held that in view of the fact that assessee did not seek any fresh registration after insertion of new objects, according to him, which was mandatory, the trust deed was not covered in the ambit of section 11 of the Act. He observed that the registration granted by Commissioner of Income-tax (Exemption) has ceased to be operative in the relevant assessment ye....
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....he same were inserted in the Trust Deed after the approval was obtained from the Charity Commissioner. The amended objects are within the scope of the general objects of the Trust for which it is formed and therefore, even after the amendment so made, the basic and fundamental character of the Trust was not altered or changed in any manner. b. There is no provision in the Act to obtain any prior permission for any amendment of the objects of the Trust, nor is there any specific provision requiring the assessee to intimate the Department about the amendment in the Objects of the Trust it is important to note that the Finance Act, 2017, has brought an amendment in Section 12A, effective from AY 2018-19, by inserting a new sub-clause (ab) in sub-section (1) of Section 12A, requiring the trust/ institution to file an application to the CIT within 30 days of the adoption/modification of the objects of which do not conform to the conditions of registration. However, this provision was not In force in A Y 2012-13, i.e. the year under appeal. This legislative development also vindicates the appellant's stand that there was no statutory requirement at the relevant time to intimate the....
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....was earlier raised during the proceedings u/ s. 80G(5), when detailed submissions were made as per our letter dated 21.3.1990. After considering these submissions and having been satisfied that the Trust was not created for any particular religious community or caste and thus not violating section 80G(5)(iii) of the Act, renewal certificate was granted on 6.12.1994 and thereafter. d. Since then there is no change in the facts and circumstances of the case. Therefore, this fundamental fact accepted by the Department in the past has to prevail as per the principle of law laid down by the Hon'ble Supreme Court in Radhasoami Satsang vs. CIT [1992] 193 !TR 321 (SC) , 3. It is further submitted that reliance placed by the Ld. A.O. on the judgment in Allahabad Agricultural Institute v. Union of India (291 ITR 116, 119) is misplaced because in that case the objects were altered by the assessee in wholesale manner and some of the new objects were not charitable in nature and that the judgment was passed in a Writ Petition filed by the assessee seeking stay of demand while the appeal was pending before the CIT(A); thus, the observations were made by the Court in the limited context o....
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....the Ld. CIT (Exemption), Mumbai, had dropped the proceedings u/s.12AA(3) of the Act for cancellation of registration U/S.12A, which was initiated on the very same grounds raised by the Ld. AO for denying exemption u/s. 11 in the assessment order. (d) The Ld. CIT(A) failed to appreciate that even otherwise registration u/s 12A could not be cancelled for non-intimation to the CIT (Exemption} about amendment in the Objects Clause of the Trust Deed, which was carried out way back in 1986. (e) The Ld. CIT(A) failed to appreciate that the appellant-trust was not created or established for a particular religious community or caste so as to disqualify u/s,13(1)(b) from claiming exemption u/s.11, and even otherwise, section 13(1)(b) has no application to the appellant-trust since it was established prior to 1.4.1962. Your appellant, therefore, prays that exemption u/s.11 be allowed to the appellant for Rs. 7,66,168/-, and the addition be deleted. 2. Denial of exemption u/s.11(lA) for LTCG: Rs. 1,72.26,7057- On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in sustaining disallowance of exemption u/s.11(1A) in respect of LTCG computed by the L....
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....rought to our notice page 4 of the order of Ld. CIT(A) in which Ld.CIT(A) has recorded the same. The Ld.AR submitted that when the CIT (Exemption) has dropped the proceedings based on the information received from the assessing officer and the same assessing officer has no power and jurisdiction to deny the benefits available to the assessee when the registration was deemed to be in force. 7. With regards to grounds 2 & 3 raised by the assessee, Ld.AR submitted that this issue may be restored to the assessing officer once the Hon'ble Bench decides the issue in favour of the assessee in ground 1. 8. On the other hand, the ld.DR relied on the orders of lower authorities. 9. Considered the rival submissions and material placed on record. We observe from the record that assessee was granted registration u/s 12A on 25/04/1975 and in the year 1986 assessee made certain modifications and amended the objects of the trust. The same were approved by the Commissioner of Charities which were placed on record. During assessment proceedings, assessing officer observed that assessee has amended the object clause without intimating the CIT (Exemption). According to the assessing officer, it vio....