2025 (7) TMI 975

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.... Income Tax Act, 1961 [hereinafter referred to as the 'Act']. 2. Appellant with whom the application was filed sought for further details, which were supplied. It is recorded in the order of 27.11.2012 passed by appellant that the settlors/trustees of applicant trust never appeared for hearing. 3. After considering the documents, appellant rejected the application by holding that applicant trust did not qualify as a Public Charitable Trust under Section 12A of the Act. 4. The four grounds on which the application was rejected are that: (a) Though the Trust Deed was executed on 22.07.1991, for the first time an application under Section 12AA of the Act was filed only on 31.05.2012, almost over twenty years later. ....

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....e Trust' with effect from 31.05.2012". 6. The appeal came to be admitted on 10.04.2014 and the following substantial question of law was framed:- "Whether on the facts and in the circumstances of the case, the Tribunal was right in directing the DITE to grant registration under Section 12AA?" 7. In our view, the ITAT was justified in allowing the appeal. 8. Section 11 of the Act deals with income from property held for charitable or religious purposes. Section 12 of the Act deals with income of trusts or institutions from contributions and particularly received by a trust created wholly for charitable or religious purposes. Section 12A of the Act provides for the conditions for applicability of Sections 11 and 12 of th....

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....ng for tax exemption. (b) (i) Just because lineal descendants of the Founder Trustee shall ipso facto become life trustees and one among them shall be the Managing Trustee, it cannot mean that assessee trust is not formed for the benefit of general public. (ii) In our view, this clause has been inserted only because family members of the Founder Trustee would control and manage the trust more efficiently. If the beneficiaries were only the family members, then perhaps appellant could have formed such an opinion, though we do not subscribe to the view that in every case it has to be so. It will depend on facts and circumstances of each case. (c) (i) On the additional powers given to the Board of Trustees by way of ....