TaxTMI 
TaxTMI 
2025 (4) TMI 1252
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....ileged that are, but not restricted to widows, destitute, orphans, aged, disabled or handicapped, for maintenance or education for themselves to be self- reliant, independent and employed, including social security measure and other government schemes. 3. To promote health and generate awareness regarding various relevant health related issues affecting urban settlements and direct underprivileged and their dependents to specific public health intervention programs that they can benefit from. 4. To undertake publications in forms of reports, papers, books, monographs and journals, magazines, newspapers, periodicals, thesis, researches, writings. discoveries, documents, news and information. On various media including social and online as well as electronic media. 5. To work with global consultants, sector associations, professional societies and NGOs/civil society groups as well as experts from national and international agencies associated with research and development, training, skill development, assessment, certification, affiliation, course accreditation or other required specializations in the Sector. 6. To liaise and collaborate with vario....
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....any and to pay the necessary expenses for the same. 16. To raise funds or borrow with or without security in line with the objectives and repay the same. To deposit in banks or otherwise deal with the money or funds of the company and to subscribe for purchase, sell, hold, acquire, endorse and negotiate every way shares and securities of every description on the money market. 17. To alienate by way of sale, charge, mortgage, hypothecation, pledge, exchange, hiring out, gift or otherwise with or without security, the properties or funds of the company or any portion thereof including the marking or giving subscription(s), contribution(s) or assistance or there wise to charitable institution(s), educational, benevolent, social welfare or other institutional bodies, person(s) as from time to time may deem necessary. 18. To take financial assistance, take guarantee from any public charitable institutions, trusts, societies and other such organizations as the Board of Directors may deem it beneficial and in the interest of the company for furtherance of the objects of the Company and the doing of all such other lawful things as considered necessary for the fur....
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....he assessee paid tution fees to a university outside India of such student, it cannot mean that the such amount is utilised to apply for other charitable activities outside India. The Ld.AR placed reliance on the decision of Coordinate Bench of this Tribunal in case of Gem & Jwellery Export Promotion Council reported in 68 ITD 95, wherein it is submitted that an organisation carrying out with exhibition and promotional activities outside India and money is spent outside India but nevertheless the 'charitable purpose' is served in India. He also placed reliance on the following decision in support of his arguments:- "1. CIT V/s. Dawoodi Bohara Jamat [2014] 43 Taxmann.com 243 (SC): 364 ITR 31 (SC) 2. Shri Sachay Mataji Mandir Vikas Trust v/s. CIT(E) [2024] 165 Taxmann.com 306 (Rajkot-Trib.) 3. National Real Estate Development Council V/s. CIT (E) ITA/487/Ahd./2024" 3.3. On the contrary the Ld.DR submitted that the object in clause 12 clearly states that, it would provide support and carry out such developmental activities to other organisations in India and outside India in the social sector. The Ld.DR submitted that, sub clause 3A of section 11requires ....
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....proval was permanent in nature. 2) During the period from 01.04.2021 to 31.09.2023, this was the period of two step registration i.e. first provisional and subsequently regular registration. 3) Amended process w.e.f. 01.10.2023 where in only organizations who have not started any activity may apply for provisional registration and where the activity is commenced then direct application for five-year registration is permissible. 4.1. In the present facts of the case, the assessee, was incorporated on 28/07/2021 and filed its application under section 10A subsequently. Thus, the assessee falls under the new regime of registration process, seeking registration/approval from 01.04.2021 to 30.09.2023, w.e.f. 01.04.2021 under section 12AB of the Act. The key features of registration under the amended scheme from 01.04.2021 to 30.09.2023 under section 12AB are as under: (i) Concept of provisional registration introduced for charity institutions is applicable to all applying for the first time, irrespective of whether they are new or existing institutions. (ii) Concept of perpetuity of registration stands withdrawn under the new scheme and provisional....
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.... into regular registration. The application for conversion is to be filed in Form 10AB at least 6 months before the expiry of the provisional registration period or within 6 months of the commencement of its activities, whichever is earlier. For Converting provisional registration into final registration, procedure is identical to what it was prevailing prior to 01.04.2021, under section 12AB(1)(b)(i). That is, the Ld.PCIT/CIT shall call for such documents or information or make such inquiries as he thinks necessary in order to satisfy himself about genuineness of the activities of the trust or institution and the compliances of other laws. The relevant provisions are as under: (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall,- a) where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five years; b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub- clause (iv) or sub-clause (v) 66[or item (B) of sub-clause (vi)] of the said clause,- i....
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....nce from the Assessing Officer under the second proviso to sub-section (3) of section 143 for any previous year; or (c) such case has been selected in accordance with the risk management strategy, formulated by the Board from time to time, for any previous year, the Principal Commissioner or Commissioner shall- (i) call for such documents or information from the trust or institution, or make such inquiry as he thinks necessary in order to satisfy himself about the occurrence or otherwise of any specified violation; (ii) pass an order in writing, cancelling the registration of such trust or institution, after affording a reasonable opportunity of being heard, for such previous year and all subsequent previous years, if he is satisfied that one or more specified violations have taken place; (iii) pass an order in writing, refusing to cancel the registration of such trust or institution, if he is not satisfied about the occurrence of one or more specified violations; (iv) forward a copy of the order under clause (ii) or clause (iii), as the case may be, to the Assessing Officer and such trust or institution. Explanation.-For the pu....
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....lation of registration/approval: a) The following issues related to the process of approval or registration, or cancellation or withdrawal thereof, have been noticed, namely:- i) Registration or approval of non-genuine trusts or institution under automated approval system: First and second provisos to clause (23C) of section 10 of the Act were substituted by new provisos by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01.04.2021. These provisos provided that the application for the approval of any trust or institution under the first regime, shall be made to the jurisdictional Principal Commissioner or Commissioner and such Principal Commissioner or Commissioner shall grant approval after examination of the application. Earlier such applications were required to be filed before the prescribed authority. Similarly, provisions of clause (ac) of sub-section (1) of section 12A provide that application for the trusts or institution under the second regime shall be made to the principal Commissioner or Commissioner. The provisional registrations or provisional approval or re-registrations or approvals in certain cases, un....
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....s 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income- (a) income derived from property13 held under trust wholly13 for charitable or religious purposes13, to the extent to which such income13 is applied13 to such purposes in India13; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apart16 is not in excess of 17 [fifteen] per cent of the income from such property;" 4.4.3. Hon'ble Delhi High Court in case of DIT (E) vs. National Association of Software and Services Companies reported in (2012) 208 Taxman 178 interpreted natural grammatical meaning of the words "to the extent to which such income is applied to such purposes in India" appearing in section 11(1)(a) of the Act. Courts have held that, the words „in India‟ appearing in section 11(1)(a), qualifies only the words 'such purposes', would not only be contrary to the plain grammatical meaning of section but also render the provisions of section 11(1)(c) redundant and otiose. Further the Courts have held that, if it was a....
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....ved that the trust deed provided, at the discretion of the trustees, to give 45 per cent of the income to the University of Athens. It was thus held that, the trust was eligible for exemption even though it provided for application of income abroad. However, the portion of income actually applied abroad or accumulated for application abroad was not exempt. B. Hon'ble Delhi High Court that in case of Digamber Jain Society for Child Welfare v. DGIT (Exemptions)reported in (2010) 228 CTR 517 that, existence of other objects can not affect the charitable status of a Trust or NGOs. Hon'ble Allahabad High Court in the case of Ewing Christian College Society v. CCIT reported in [2009] 318 ITR 160 held that, the objective to serve the church and nation would not mean that the society was not existing solely for educational purposes; therefore, any additional object clauses normally should not affect the charitable status of a trust/institution/NGO. C. Similarly, Hon'ble Andhra Pradesh High Courtin CWT v. Trustees of the Nizam's Religious Endowment Trust reported (1977) 108 ITR 229 relied by the Ld.AR, it was held that, the charitable or religious expenditure incurred in I....