TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 640
X X X X Extracts X X X X
X X X X Extracts X X X X
....s) ought to have appreciated that the activities carried on are of general public utility. 4. Brief facts of the case are that the assessee is a section 8 company and was incorporated on 30.07.2020 with the object to promote social welfare, education, culture and arts and run programs for such purposes, to design and execute rural development programs, to promote the protection of the environment and undertakes programs for this purpose, eradicate hunger, poverty and malnutrition, promoting healthcare, promotion of education etc. In the Form 10AB dated 30.04.2024 also the foundation has mentioned its objects as relief of poor, education, medical relief, preservation of environment (including watersheds, forest and wildlife) and advancement of any other objects of general public utility. The ld.CIT(E) issued a notice dated 05.08.2024 Seeking certain details in support of the application filed inform 10AB for registration u/s. 12AB of the Act. In response the assessee filed it's detailed reply on 04.10.2024 by providing the following details (Page No.15-30 of Paper book): 1. The objectives of the company 2. Activities carried out the company 3. Details of the trustees 4. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that previous year; 7. The applicant trust activities cannot be held as education as it is not providing any service in the nature of education to general as per the decision of the Hon'ble Supreme Court in the case of Municipal corporation of Delhi Vs Children Book Trust held that the imparting of education must involve public benefit as to fall within the meaning of charitable object. Therefore, education to fall within the limb of "charitable purpose" under section 2(15) should be for advancement of public and not merely for few specific persons. 8. Since, the foundation is actually engaged itself as recruiting agency for its funding company (M/s. RKM Powergen Private Limited) which unable to face the resistance from local population against its coal based power project, the activities of the foundation cannot also be considered as preservation of environment as claimed by it in its written submission. 3.7. No General Public Utility: Object of general public utility means an object of public utility which available to the general public as distinct from any section. In the instant case, the foundation is actually engaged in recruiting and training people for the benef....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g company M/s. RKM Powergen Private Limited, the assessee employed the unskilled people residing locally to carry out rural development projects in Ucchpinda, Kotmi, Singhitarai and other nearby villages, Jangir of Champa District, state of Chhattisgarh and activities includes afforestation, water conservation by desilting water bodies and tank bunds and repair works has been carried out schools and dispensaries in and around the power plant and nearby villages. 10. Further, the ld.AR submitted the books of accounts of the assessee has been audited and same has been submitted to both Registrar of Companies and Income Tax department (page No.88 - 167 of the paper book). The ld.AR also stated that the assessee has submitted the complete the details before the ld.CIT(E) about the objectives of the assessee, activities carried out and the CSR initiative proposed by the CSR fund contributing Company (M/s. RKM Powergen Private Limited) as detailed below: The assessee is funded by R.K.M Powergen Private Limited (RKM), which operated a coal based mega power plant in Jangir, - Champa District, State of Chhattisgarh. The project is unable to employ local people who lack the skills and edu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ement of any other object of general public utility, and the preservation of the environment. The activities of the Foundation would constitute an object of general public utility. Details of expenditure and income are given below: CSR Contribution Received: (Rs. In '000) Financial Year Contribution received Salaries Other Expenses Amount Spent 2021-2022 6,919.78 6900.70 22.81 6923.31 2022-2023 22,973.26 22433.10 107.35 32,540.45 2023.2024 23,529.07 23159.07 410.26 23569.33 Foundation has further carried out Women self-empowerment activities such as conducting Training Program on Costume Jewellery Entrepreneurship, Mushroom farming in Kekarabhat village. Details of CSR activities carried out in each village during the year Financial year 2022- 23 and 2023-24 is attached as Annexure -1 Sample copies of works executed by foundation is attached as Annexure-2. We shall be pleased to submit further particulars that may be required in this regard." In light of the above arguments the ld.AR prayed for setting aside the order of the ld.CIT(E) and direct to grant the registration u/s. 12AB of the Act. 11. Per contra the ld.DR relied on the ....