B.K.K Memorial Trust, New Delhi V. CIT, Haryana

ITA 6088/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3720 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-06-2011
• Assessment Year: misc
• Appeal Filed On: 31-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA
• Keywords: Gift; Charitable institution; Opportunity of being heard
• Section: 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI DELHI BENCH A : NEW DELHI DELHI BENCH A : NEW DELHI DELHI BENCH A : NEW DELHI BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND SHRI A.D.JAIN, JUDICIAL MEMBER SHRI A.D.JAIN, JUDICIAL MEMBER SHRI A.D.JAIN, JUDICIAL MEMBER SHRI A.D.JAIN, JUDICIAL MEMBER ITA NO.6088/DEL/2010 ITA NO.6088/DEL/2010 ITA NO.6088/DEL/2010 ITA NO.6088/DEL/2010 ASSESSMENT YEAR : N.A. ASSESSMENT YEAR : N.A. ASSESSMENT YEAR : N.A. ASSESSMENT YEAR : N.A. B.K.K.MEMORIAL TRUST, B.K.K.MEMORIAL TRUST, B.K.K.MEMORIAL TRUST, B.K.K.MEMORIAL TRUST, H.NO.59, SECTOR H.NO.59, SECTOR H.NO.59, SECTOR H.NO.59, SECTOR- -- -14, 14, 14, 14, ROHTAK. ROHTAK. ROHTAK. ROHTAK. PAN NO.A PAN NO.A PAN NO.A PAN NO.AABTB4402C. ABTB4402C. ABTB4402C. ABTB4402C. VS. VS. VS. VS. COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, ROHTAK, ROHTAK, ROHTAK, ROHTAK, HARYANA. HARYANA. HARYANA. HARYANA. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.S.SINGHVI, CA. RESPONDENT BY : MS.ANUSHA KHURANA, SR.DR. ORDER ORDER ORDER ORDER PER A.D.JAIN, JM : PER A.D.JAIN, JM : PER A.D.JAIN, JM : PER A.D.JAIN, JM : THIS IS ASSESSEES APPEAL AGAINST LEARNED CITS OR DER DATED 26.11.2010 PASSED U/S 12AA(1)(B)(II) OF THE INCOME- TAX ACT. 2. WHILE REJECTING THE ASSESSEES APPLICATION FOR R EGISTRATION U/S 12AA OF THE ACT, THE LEARNED CIT, VIDE THE IMPUGNED ORDER, OBSERVED, INTER ALIA , THAT THE AIMS AND OBJECTS OF THE APPLICANT TRUST SHOWED THAT IT HAD A NUMBER OF OBJECTS; HOWEVER, NO ACTIVITY HA D BEEN CARRIED OUT IN RELATION TO ANY OF THE SAID OBJECTS FOR THE SAKE OF GENERAL WELFARE OF THE PUBLIC DURING FY 2008-09, RELEVANT TO AY 2009-1 0; THAT IN ACCORDANCE WITH SELF EMPLOYERS SERVICE SOCIETY VS. CIT 247 ITR 18 (KERALA), WHEN A SOCIETY DOES NOT CARRY OUT ANY ACT IVITY TO ATTAIN ANY OF ITS OBJECTS IN THE FIRST YEAR, IT DOES NOT DESERVE REGISTRATION U/S 12AA OF THE ACT; THAT THE TRUST HAD MADE FDRS WITH BANKS, O F `2,18,30,042/-; THAT THE TRUST ALSO HAD A HUGE BANK BALANCE; THAT T HE MAIN MOTIVE OF THE TRUST WAS THUS TO EARN INCOME BY WAY OF INTERES T; THAT THE TRUST WAS LIKE A PRIVATE DISCRETIONARY TRUST WHERE SHRI PRIKS HIT KATYAL, HIS SON, HIS MOTHER, SMT.SANGEETA KATYAL AND HIS BROTHER SHRI GA URAV KATYAL WERE ITA-6088/DEL/2010 2 TRUSTEES IN THE PREVIOUS TRUST DEED, DUE TO WHICH, IT WAS REJECTED ON 5.5.2010; THAT THOUGH IN THE SUPPLEMENTARY DEED, SM T.SHRUTI BHAGAT, SMT.DARSHANA DHINGHRA AND SHRI SANJAY BHAGAT HAD BE EN ADDED AS NEW TRUSTEES, THE APPLICANT TRUST HAD FAILED TO EST ABLISH THEIR OBJECTIVITY WITH CORROBORATIVE EVIDENCE, THAT EVEN AS PER THE S UPPLEMENTARY TRUST DEED, THERE WAS NO PROVISION FOR INDEPENDENT INTERN AL CHECK ON THE DISCRETIONARY FUNCTIONING OF THE TRUST AND HAD ALSO NOT BEEN STIPULATED IN THE DEED THAT THE TRUST PROPERTIES WOULD BE HELD IN THE NAME OF THE TRUST ITSELF, RATHER THAN IN THE NAMES OF THE TRUST EES; THAT APROPOS THE TRUST FUNDS, NOTHING SPECIFIC HAD BEEN MENTIONED AN D IT HAD BEEN SIMPLY STATED THAT NOTHING CONTAINED IN THE DEED SH ALL BE DEEMED TO AUTHORIZE THE TRUSTEES TO DO ANY ACT WHICH MAY IN A NY WAY BE CONSTRUED AS A VIOLATION OF OR CONTRARY TO THE PROV ISIONS OF LAW RELEVANT TO PUBLIC TRUSTS OR PUBLIC CHARITABLE INSTITUTIONS; THAT THE TRUST WAS THUS SUSCEPTIBLE TO USE FOR PURPOSE OTHER THAN CHARITABL E ONES; THAT THE OBJECTS OF THE TRUSTS WERE NOT CHARITABLE; THAT UND ER THE HEAD POWER OF THE BOARD OF TRUSTEES, IT HAD BEEN STIPULATED T HAT THE BOARD OF TRUSTEES SHALL HAVE THE POWER TO CONVERT THE TRUST PROPERTY, ACQUIRE IMMOVABLE PROPERTY, SELL, CHARGE, RENT OUT OR OTHER WISE ALIENATE THE ASSETS INCLUDING IMMOVABLE PROPERTY FOR PROTECTING OR IMPROVING THE TRUST PROPERTY OR FOR ANY OF THE OBJECTS OF THE TRU ST; THAT THIS STIPULATION WAS NOTHING BUT A PROVISION FOR THE DIRECT TRANSFER OF THE ASSETS/INCOME OF THE TRUST FOR PERSONAL/NON-CHARITABLE PURPOSES O F THE BOARD OF TRUSTEES WHICH CONSISTED ONLY OF SHRI PRIKSHIT KATY AL, SMT.SANGEETA KATYAL, SHRI GAURAV KATYAL, SMT.SHRUTI BHAGAT, SMT. DARSHANA DHINGHRA AND SHRI SANJAY BHAGAT; THAT AS PER THE TRUST DEED, SIX SETTLERS CUM TRUSTEES HAD AUTOCRATIC OR DISCRETIONARY POWERS TO REMOVE WITHOUT ANY NOTICE OR REASON A TRUSTEE OTHER THAN THE SETTLER; THAT UNDER TRUST FUND, IT HAD BEEN STIPULATED THAT THE TRUSTEES SHA LL HOLD THE TRUST FUND AND ADDITION THERETO; THAT THE STIPULATION IN THE T RUST DEED FOR SUBSIDIZED LOW RATE OF INTEREST INDICATED THAT TH E INTENTION OF THE ITA-6088/DEL/2010 3 TRUST WAS NOT CHARITABLE FROM THE VERY BEGINNING; T HAT THE TRUST HAD NOT FURNISHED ANY DOCUMENTARY EVIDENCE REGARDING THE ID ENTITY AND CAPACITY TO MAKE INITIAL INVESTMENT IN THE TRUST BY THE TRUSTEES; AND THE TRUST HAD NOT DISCLOSED THE FULL FACTS REGARDING TH E AMOUNT OF INITIAL INVESTMENT BY EACH TRUSTEE EVEN THE COPIES OF RET URNS OF INCOME OF THE TRUSTEES HAD NOT BEEN FURNISHED. 3. CHALLENGING THE IMPUGNED ORDER, THE LEARNED COUN SEL FOR THE ASSESSEE HAS CONTENDED THAT THE LEARNED CIT HAS ERR ED IN REJECTING THE APPLICATION FILED BY THE ASSESSEE TRUST FOR REGISTR ATION U/S 12AA OF THE ACT, HOLDING THAT THE AIMS, OBJECTS AND TERMS OF TH E TRUST DEED ARE NOT OF A CHARITABLE NATURE; THAT FOR THE PURPOSE OF REG ISTRATION OF A TRUST, THE ONLY THING TO BE CONSIDERED BY THE CIT IS THAT THE OBJECTS AND ACTIVITIES OF THE APPLICANT ARE OF A CHARITABLE NAT URE; THAT IN THE PRESENT CASE, NO FINDING HAS BEEN RECORDED BY THE LEARNED C IT, TO THE EFFECT THAT, EITHER THE OBJECTS OR THE ACTIVITIES OF THE A PPLICANT TRUST ARE NOT CHARITABLE IN NATURE; THAT AS AVAILABLE FROM THE BA LANCE SHEET OF THE ASSESSEE TRUST, FOR THE PERIOD FROM 14.9.2008 TO 31 .3.2009 (COPY AT PAGE 29 OF THE ASSESSEES PAPER BOOK, APB, FOR SH ORT), THE ASSESSEE HAD PURCHASED LAND DURING THIS YEAR, WHICH WAS THE FIRST YEAR OF THE ASSESSEE TRUST; THAT THE PURCHASE OF THE LAND WAS O UT OF FUNDS COLLECTED; THAT IN THE NEXT YEAR, AS PER THE BALANC E SHEET FOR THE PERIOD FROM 1.4.2009 TO 31.3.2010 (COPY AT APB-32), SCHOLA RSHIPS WERE AWARDED TO NEEDY STUDENTS, WIDOW DONATION WAS DISBU RSED AND FURTHER LAND WAS PURCHASED; THAT BOTH THESE BALANCE SHEETS WERE PLACED BEFORE THE LEARNED CIT; THAT HOWEVER, THE LEARNED C IT DID NOT TAKE THEM INTO CONSIDERATION; THAT THE LEARNED CIT HAS E RRED IN OBSERVING THAT THE TRUST WAS LIKE A PRIVATE DISCRETIONARY TRU ST, IGNORING THAT THE POWERS AND DUTIES OF THE OTHER TRUSTEES, ARE ONLY R EGULATORY, BESIDES THE FACT THAT THIS ASPECT IS TO BE EXAMINED BY THE AO U/S 11 TO 13 OF THE ACT, AT THE TIME OF ASSESSMENT AND NOT WHILE GR ANTING REGISTRATION; ITA-6088/DEL/2010 4 THAT THE LEARNED CIT HAS ERRED IN OBSERVING THAT TH E PROPERTIES ARE IN THE NAMES OF THE TRUSTEES, EVEN WHEN CONVEYANCE DEE DS WERE PLACED BEFORE HIM AND IT IS CLEAR THEREFROM THAT THE PROPE RTIES ARE IN THE NAME OF THE TRUST AND NOT IN THE NAMES OF THE TRUSTEES; THAT THE LEARNED CIT HAS ERRED IN OBSERVING THAT THE STIPULATION THAT TH E BOARD OF TRUSTEES SHALL HAVE POWER TO CONVERT THE TRUST PROPERTY, TO ACQUIRE IMMOVABLE PROPERTY, SELL, CHARGE, RENT OUT OR OTHERWISE ALIEN ATE THE ASSETS, IS NOTHING BUT A PROVISION FOR THE DIRECT TRANSFER OF THE ASSETS/INCOME OF THE TRUST FOR PERSONAL/NON-CHARITABLE PURPOSES; THA T WHILE DOING SO, LEARNED CIT HAS IGNORED THAT THE CLAUSE CONTAINED I N THE TRUST DEED IN THIS REGARD IS OF A GENERAL NATURE, TO PROTECT OR I MPROVE THE TRUST PROPERTY; THAT THE LEARNED CIT HAS ERRED IN OBSERVI NG THAT THE TRUSTEES HAVE AUTOCRATIC AND DISCRETIONARY POWERS TO REMOVE A TRUSTEE OTHER THAN A SETTLER; THAT THE LEARNED CIT HAS FAILED TO CONSIDER THE PROCEDURE FOR REMOVAL OF TRUSTEES BY THE BOARD OF TRUSTEES AN D WHERE SUCH REMOVAL BY THE BOARD IS NOT PROPER, BY AN ARBITRATO R AND THAT IN ALL CASES OF REMOVAL, A NOTICE HAS TO BE GIVEN BEFORE T AKING ACTION; THAT THE STIPULATION UNDER THE HEAD TRUST FUND THAT TH E TRUSTEES SHALL HOLD THE TRUST FUND HAS WRONGLY BEEN HELD TO BE DETRIMEN TAL TO THE CASE OF THE ASSESSEE TRUST, DESPITE THE FACT THAT THE CLAUS E IN THIS REGARD, AS CONTAINED IN THE TRUST DEED, IS A GENERAL CLAUSE SP ECIFYING THAT THE TRUSTEES SHALL HOLD THE TRUST FUND, TO THE EXCLUSIO N OF THE OUTSIDERS; THAT THE LEARNED CIT HAS ERRED IN OBSERVING THAT THE STI PULATION FOR SUBSIDIZED LOW RATE OF INTEREST INDICATES THAT THE INTENTION OF THE TRUST WAS NOT CHARITABLE FROM THE VERY BEGINNING; THAT TH IS WAS REGARDING LOAN TO BE GIVEN TO NEEDY STUDENTS FOR STUDIES AT N IL/SUBSIDIZED RATES; THAT IT HAS WRONGLY BEEN OBSERVED THAT THE ASSESSEE TRUST HAS NOT FURNISHED ANY DOCUMENTARY EVIDENCE REGARDING THE ID ENTITY AND CAPACITY TO MAKE INITIAL INVESTMENT IN THE TRUST BY THE TRUSTEES AND THAT FULL FACTS REGARDING THE AMOUNT OF INITIAL INV ESTMENT BY EACH TRUSTEE HAD NOT BEEN DISCLOSED; THAT COMPLETE DETAI LS IN THIS REGARD ITA-6088/DEL/2010 5 WERE DULY FURNISHED BEFORE THE LEARNED CIT, WHICH W ERE WRONGLY IGNORED; THAT, IN ANY CASE, THIS ASPECT OF THE MATT ER IS ALSO TO BE EXAMINED AT THE TIME OF ASSESSMENT AND NOT WHILE GR ANTING REGISTRATION; THAT ALL THE DETAILS PERTAINING TO EA CH AND EVERY OBJECTION RAISED BY THE LEARNED CIT WERE DULY FURNISHED BY TH E ASSESSEE TRUST BEFORE THE LEARNED CIT AND COPIES THEREOF STAND DUL Y FILED IN THE ASSESSEES PAPER BOOK (PARTICULAR PAGES POINTED OUT ); THAT IN THIS MANNER, THE LEARNED CIT HAS WRONGLY INTERPRETED THE VARIOUS CLAUSES OF THE TRUST DEED; AND THAT THE REGISTRATION HAS WRONG LY BEEN DENIED TO THE ASSESSEE TRUST ON WRONG PERIPHERAL OBSERVATIONS , NOT GERMANE TO THE GRANT OF REGISTRATION U/S 12AA OF THE ACT. IT HAS BEEN SUBMITTED THAT THE LEARNED CIT HAS WRONGLY RELIED ON SELF EM PLOYERS SERVICE SOCIETY, 247 ITR 18. RELIANCE HAS BEEN PLACED ON JUPITER MEDICAL RESEARCH CENTRE TRUST VS. DIRECTOR OF INCOME-TAX (E XEMPTION), 128 TTJ 118 (AHD.)(UO) AND DIRECTOR OF INCOME-TAX VS. GARDEN CITY EDUCATIONAL TRUST, 330 ITR 480 (KARN). 4. THE LEARNED DR, ON THE OTHER HAND, WHILE STRONGL Y SUPPORTING THE IMPUGNED ORDER, HAS SUBMITTED THAT IN THE PRESENT C ASE, THE CONDITIONS PRE-REQUISITE FOR REGISTRATION OF TRUST REMAINED UN FULFILLED INASMUCH AS THE OBJECTS OF THE TRUST HAVE NOT BEEN PROVED TO BE CHARITABLE AND THE GENUINENESS OF THE ACTIVITIES HAS NOT BEEN PROVED; THAT IN THE INITIAL YEAR, UNDENIABLY, THE ASSESSEE TRUST DID NOT CARRY OUT ANY ACTIVITY AND SO, AS RIGHTLY OBSERVED BY THE LEARNED CIT, IT DID NOT DESERVE REGISTRATION IN KEEPING WITH SELF EMPLOYERS SERVIC E SOCIETY (SUPRA); THAT THE MOTIVE OF THE TRUST BEING THAT OF EARNING INTEREST INCOME IS AMPLY CLEAR FROM THE FACT THAT THE TRUST HAD MADE F DRS OF `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`17,37,350/-. THUS, IT CANNOT BE SAID THAT NO ACTI VITY WAS CARRIED OUT BY THE TRUST DURING THIS PERIOD. FURTHER, AS PER T HE BALANCE SHEET FOR THE PERIOD FROM 1.4.2009 TO 31.3.2010 (APB-31), INTER ALIA , SCHOLARSHIPS OF `41,100/- WERE GIVEN TO STUDENTS AND `30,000/- W AS DISBURSED AS WIDOW PENSION AND LAND WAS PURCHASED FOR `1,02,75,6 50/-. NEITHER OF THESE BALANCE SHEETS WAS CONSIDERED BY THE LEARNED CIT. 7. APROPOS THE OBJECTS OF THE TRUST, AS PER THE ORI GINAL TRUST DEED, THE FOLLOWING ARE THE OBJECTS OF THE TRUST:- THAT THE AIMS AND OBJECTS OF THE TRUST ARE AS UNDE R: (1) TO ESTABLISH, DEVELOP, MAINTAIN AND/OR GRANT, A ID IN CASH OR IN KIND TO RUN HOSPITALS, MEDICALS, EDUCATI ONAL INSTITUTIONS. MEDICAL DISPENSARIES, ALL KINDS OF E DUCATIONAL INSTITUTIONS (TECHNICAL, PROFESSIONAL ETC.), COLLEG ES, SCHOOLS, NURSING HOMES, MATERNITY HOMES, CHILDREN A ND WOMEN WELFARE CENTERS AND/OR SUCH OTHER SIMILAR CHARITABLE INSTITUTIONS IN INDIA FOR THE BENEFIT AN D USE OF THE GENERAL PUBLIC FOR COMMON WELFARE. (2) TO ESTABLISH, RUN, SUPPORT AND GRANT AND OR THE IR FINANCIAL ASSISTANCE TO SCHOOLS, LIBRARIES, READING ROOMS. UNIVERSITIES ALL TYPES OF HIGHER AND TECHNICAL EDUC ATIONAL INSTITUTIONS OF THE LIKE NATURE IN INDIA FOR USE OF THE STUDENTS AND THE EDUCATION AND DIFFUSION OF KNOWLED GE AMONGST THE COMMON PEOPLE. ITA-6088/DEL/2010 8 (3) TO ESTABLISH, MAINTAIN OR GRANT AID FOR THE ESTABLISHMENT AND/OR MAINTENANCE OF HISTORICAL PARK S, GARDEN, REST HOUSES, HISTORICAL MONUMENTS, BUILDING S FOR THE PROMOTION OF SCIENCE, ART, LITERATURE, MUSIC, D RAMA AND FINE ART AND OTHER INSTITUTIONS IN INDIA HAVING SIM ILAR OBJECTS FOR THE BENEFIT OF THE PUBLIC IN GENERAL. (4) TO GRANT AID OR RENDER ASSISTANCE TO OTHER PUBL IC CHARITABLE TRUST OR INSTITUTIONS. (5) TO GIVE STIPENDS, SCHOLARSHIP AND MONETARY AIDS TO THE POOR AND NEEDY STUDENTS AND SCHOLARS. (6) TO ADVANCE LOANS TO DESERVING STUDENTS FOR PURS UING THEIR STUDIES ON REASONABLE RATES OF INTERESTS OR I N ANY OTHER MANNER AS MAY BE DECIDED BY THE SETTLER OR TH E MANAGING TRUSTEE FROM TIME TO TIME. (7) TO OPEN, FUND AND MAINTAIN OR CONTRIBUTE TO THE OPENING AND MAINTAINING OF SUCH INSTITUTIONS AND TR AINING CENTERS WHERE WORK ON LIVING WAGES CAN BE PROVIDED TO POOR AND MIDDLE CLASSES PEOPLE AND AS MAY BE CONDUC TIVE TO THE DEVELOPMENT OF SUCH INDUSTRIES IN ANY PART O F INDIA UNION FOR THE BENEFIT FOR THE POOR. (8) TO OPEN, FUND, ESTABLISH OR FINANCE, ASSIST AND CONTRIBUTE FOR THE MAINTENANCE OF SANATORIUM ASYLUM S, HOSPITALS, MOBILE DISPENSARIES, MATERNITY HOMES, AN D ANY OTHER INSTITUTIONS FOR TREATMENT OF DISEASED AND DI SORDERS OF THE HUMAN BODIES. (9) TO OPEN, FUND, ESTABLISH, MAINTAIN AND ASSIST A SYLUMS FOR LAPPERS OF THOSE SUFFERINGS FROM CONTAGIOUS DIS EASES AND ALSO INSTITUTIONS FOR THE RELIEF OF THE DESTITU TE OR DISABLED PERSONS. (10) TO CONSTRUCT, BUILD AND MAINTAIN DHARAM SHALAS , SARAIES, HOSTELS, NIGHT SHELTER FOR PUBLIC USE OR B ENEFIT AND SHALL NOT INVOLVE THE CARRYING OF ANY ACTIVITIES FO R PROFIT. (11) TO ESTABLISH, MAINTAIN, RUN AND SUPERVISE BARA T GHAR, COMMUNITY CENTRES, CLUBS/SPORTS CLUBS/VYAYAM SHALAS ETC. FOR THE USE OF THE COMMON PEOPLE TO PROVIDE TH EM BENEFITS. ITA-6088/DEL/2010 9 (12) TO OPEN, FUND, ESTABLISH OR CONTRIBUTE FOR THE MAINTENANCE OF BLINDS, ORPHANAGES, WIDOW HOMES, LUN ATIC ASYLUMS, POOR HOUSES ETC. (13) TO DISTRIBUTE FOODS, BLANKETS, RAGE, QUILTS, G IFTS AND ALL KINDS OF COTTON OR WOOLEN CLOTHINGS TO THE POO R AND NEEDY PEOPLE. (14) TO HELP IN CASH OR IN ANY KIND TO THE INDIAN M ILITARY PERSONNEL AND THEIR FAMILIES WHO, FROM TIME TO TIME , MAKE SACRIFICES BECOME DISABLED AND LAY THEIR LIVES FOR THE CAUSE OF THE NATION. (15) TO SET UP INSTRUCTIONAL OR TRAINING CENTERS FO R IMPARTING INSTRUCTIONS AND TRAINING IN MEDICINE, BA NKING, COMMERCE, SOCIAL SERVICES, VILLAGE CONSTRUCTION WOR KS, SMALL SCALE INDUSTRIES AND SUCH OTHER SUBJECTS AS M AY BE DETERMINED FROM TIME TO TIME. (16) TO GIVE AWARDS, CERTIFICATES AND ASSISTANCE IN CASH OR ANY KIND IN RECOGNITION OF MERITORIOUS WORK DONE IN THE FIELDS OF EDUCATION, MEDICAL, RESEARCH AND RELIEF, SOCIAL WELFARE, DEVELOPMENT OF KHADI AND VILLAGE COTTAGE INDUSTRIES, RELIEF TO THE POOR AND THE ADVANCEMENT OF ANY OTHER OBJECTS OR PUBLIC UTILITY AND/OR RENDERS SERV ICES TO THE PHYSICALLY HANDICAPPED PERSONS IN RURAL AND WEAKER SECTIONS OF THE SOCIETIES. (17) TO ENCOURAGE THE PEOPLE FOR EYE DONATION AND T O ARRANGE FOR BLOOD DONATION CAMP FOR THE WELFARE OF THE POOR, NEEDY AND COMMON PEOPLE. (18) TO ARRANGE FOR VOCATIONAL TRAINING TO THE POOR , WIDOWS, HELPLESS PERSONS SUCH AS TO THE SC/ST/OBC CANDIDATES AS WELL AS PHYSICALLY HANDICAPPED PERSON S PROVIDING TRAINING COURSES IN TYPE-WRITING, SHORT-H AND WRITING, COMPUTER OPERATING, STITCHING, TAILORING, CUTTING, WEAVING, KNITTING WOOLEN DRESSES AND OTHER RELATED TRAINING COURSES IN DIFFERENT STREAMS TO BECOME SEL F- EMPLOYED. (19) TO PROMOTE, ESTABLISH AND DEVELOP MEDICAL RESE ARCH CENTERS FOR DIFFERENT SYSTEMS FOR THE DEVELOPMENT A ND ADVANCEMENT OF MEDICAL FACILITIES AND RELIEF OF THE PATIENTS OF OUR COUNTRY. ITA-6088/DEL/2010 10 (20) TO GIVE STIPEND, MONETARY AIDS, FINANCIAL ASSI STANCE IN THE FORM OF FELLOWSHIP/SCHOLARSHIP/PRIZES/AWARDS TO THE EXCEPTIONALLY SCHOLARS IN VARIOUS FIELDS SUCH AS ENGINEERING, MEDICAL EDUCATION, SOCIAL WELFARE, SCI ENCE AND TECHNOLOGY, AGRICULTURE, ANIMAL HUSBANDRY, HEAL THS, POPULATION CONTROL ETC. (21) TO APPLY AND GET LAND/BUILDING/PREMISES BY PUR CHASE OR BY RECEIVING DONATIONS FROM THE GOVERNING AUTHOR ITY OR FROM THE PUBLIC TO FULFILL THE AIMS AND OBJECTIVES OF THE TRUST AND GENERALLY TO DO ALL SUCH OTHER ACTS, DEED S AND THINGS WHICH ARE NOT SPECIALLY MENTIONED HEREINABOV E BUT RELATED TO PROGRESS OF THE TRUST. (22) TO ESTABLISH AND MANAGE TEMPLES, ASHRAMS AND DHARAMSHALAS FOR THE BENEFIT OF DEVOTEES, PILGRIMS, TOURISTS AND STUDENTS GOING ON EDUCATIONAL COURSES. (23) TO SET UP PRINTING PRESS FOR PUBLISHING AND DISTRIBUTING TEXT AND NOTE BOOKS, STUDY MATERIALS T O PERSONS INTERESTED IN STUDYING YOGAS, VEDAS AND PHILOSOPHICAL BOOKS OF THE LIKE NATURE, STUDY MATER IAL FOR THE STUDENTS AND THOSE WHO ARE ATTENDING COMPETITIO N EXAMINATIONS. (24) TO START AND MANGE CENTERS FOR TRAINING OF YOU THS IN SELF-EMPLOYMENT AND JOB-ORIENTED COURSES AND SET UP GYMNASTIC/HEALTH CENTERS, STADIUM FOR PHYSICAL EXER CISES TO KEEP THE FITNESS OF BODY AND MIND OF GENERAL PUB LIC AND TO ORGANIZE, MANAGE AND CONDUCT SPORTS EVENTS IN VA RIOUS PARTS OF THE COUNTRY. (25) TO CONDUCT BHANDARAS AND LANGARS REGULARLY FOR THE POOR AND NEEDY PERSONS. (26) TO PROVIDE FREE WATER AND OTHER FACILITIES TO THE POOR AND WEAKER SECTIONS OF THE SOCIETY. (27) TO BORROW, RAISE LOANS FROM ANY PERSONS, BANK OR FINANCIAL INSTITUTIONS IN SUCH MANNER AS THE TRUSTE ES SHALL THINK PROPER OR CONVENIENT FOR THE FURTHERANCE OF O BJECTS OF THE TRUST AND FOR THIS PURPOSE THE TRUSTEES MAY SEC URE REPAYMENTS OF THESE LOANS IN ANY MANNER, AS MAY BE DECIDED FROM TIME TO TIME. ITA-6088/DEL/2010 11 (28) TO DO ALL NECESSARY THINGS FOR AND INCIDENTAL FOR THE ATTAINMENT OF ABOVE OBJECTIVES OF THE TRUST, FOR CO MMON WELFARE. (29) THE TRUSTEES SHALL BE ENTITLED AND BE AT LIBER TY TO ACCEPT GIFTS, VOLUNTARY CONTRIBUTIONS FROM AND PERS ON, FIRM OR CONCERN, INSTITUTIONS OR GOVERNMENT AND TO COLLE CT SUBSCRIPTIONS, DONATIONS OR AID FROM STATE GOVERNME NT, CENTRAL GOVERNMENT OR AUGMENT THE TRUST FUND AND US E SUCH MONEY FOR FULFILLMENT OF THE AIMS AND OBJECTS OF THE TRUST. (30) TO ORGANIZE SEMINARS ON SOCIAL JUSTICE, ECONOM IC UP LIFT MENT, TO RAISE DEMANDS FOR LEGAL RIGHTS AND PR IVILEGES FOR THE SC/ST/OBC, MINORITY CLASSES, AND WEAKER SEC TIONS OF THE SOCIETY. (31) AT THE TIME OF DEATH OF ANY POOR PERSON THE CREMATION EXPENSES MAY BE BORN BY THIS TRUST. (32) TO ARRANGE COLLECTIVE MARRIAGES OF POOR GIRLS AND BOYS. (33) TO HELP AND ASSIST THE POOR FAMILIES OF ANY CA STE, COLOUR, CREED AS WELL AS ANY RELIGION. (34) TO APPLY AND GET LAND/BUILDING BY PURCHASING O R BY RECEIVING THE SAME BY DONATION, GIFT/CONTRIBUTION F ROM THE GOVERNMENT CONCERN TO FULFILLMENT OF THE AIMS AND OBJECTIVES OF THE TRUST. (35) TO CARRY OUT ANY OTHER KIND OF ACTIVITY IN THE INTEREST OF THE PUBLIC AND THE TRUST. (APB-7 TO APB-10) 8. AS PER THE AMENDED TRUST DEED, THE AIMS AND OBJE CTS OF THE TRUST ARE :- AIMS AND OBJECTS OF THE TRUST ITEM NO.6 TO ADVANCE LOANS TO DESERVING STUDENTS FO R PURSUING THEIR STUDENTS ON REASONABLE RATES OF INTE RESTS OR IN ANY OTHER MANNER AS MAY BE DECIDED BY THE SETTLE S OR THE MANAGING TRUSTEE FROM TIME TO TIME. ITA-6088/DEL/2010 12 ITEM NO.7 TO OPEN, FUND AND MAINTAIN OR CONTRIBUTE TO THE OPENING AND MAINTAINING OF SUCH INSTITUTIONS AND TR AINING CENTERS WHERE WORK ON LIVING WAGES CAN BE PROVIDED TO POOR AND MIDDLE CLASSES PEOPLE AND AS MAY BE CONDUC TIVE TO THE DEVELOPMENT OF SUCH INDUSTRIES IN ANY PART O F INDIA UNION FOR THE BENEFIT FOR THE POOR. ITEM NO.9 TO OPEN, FUND, ESTABLISH, MAINTAIN AND AS SIST ASYLUMS FOR LAPPERS OF THOSE SUFFERINGS FROM CONTAG IOUS DISEASES AND ALSO INSTITUTIONS FOR THE RELIEF OF TH E DESTITUTE OR DISABLED PERSONS. ITEM NO.13 TO DISTRIBUTE FOODS BLANKETS RAGE, QUILT S, GIFTS AND ALL KINDS OF COTTON OR WOOLEN CLOTHINGS TO THE POOR AND NEEDY PEOPLE. ITEM NO.29 THE TRUSTEES SHALL ENTITLED AND BE AT LI BERTY TO ACCEPT GIFTS, VOLUNTARY CONTRIBUTIONS FROM AND PERS ON, FIRM OR CONCERN, INSTITUTIONS OR GOVERNMENT AND TO COLLE CT SUBSCRIPTIONS, DONATIONS OR AID FROM STATE GOVERNME NT, CENTRAL GOVERNMENT OR AUGMENT THE TRUST FUND USE SU CH MONEY FOR FULFILLMENT OF THE AIMS AND OBJECTS OF TH E TRUST. (APB-20 TO APB-21) 9. PERTINENTLY, THE LEARNED CIT HAS NOT MADE ANY OB SERVATION THAT ANY OF THE ABOVE OBJECTS OF THE TRUST IS NOT CHARIT ABLE IN NATURE. 10. APROPOS ASSESSEES ACTIVITIES, THE ASSESSEE, IN ITS REPLY DATED 20.9.2010 (APB-35 TO APB-38) TO THE LEARNED CIT, HA S SPECIFICALLY STATED AS UNDER:- ACTIVITIES AS TO ACTIVITIES, THE TRUST HAS START ED THE PROCESS OF ESTABLISHING AN ENGINEERING COLLEGE BY A CQUIRING LAND FOR THIS PURPOSE. BOOKS OF ACCOUNT, BILLS, VO UCHERS & PROCEEDING BOOK INDICATE THAT THE ACTIVITIES FOR CR EATING INFRASTRUCTURE NECESSARY FOR IMPARTING EDUCATION FO R WELFARE OF THE PUBLIC HAVE BEEN STARTED FROM THE VE RY BEGINNING IN THE FIRST YEAR OF ITS CREATION AND THE ACTIVITIES ARE GENUINE, NOT SHAM. AS TO THE ACTIVITIES PERFOR MED IN THE SECOND YEAR OF ITS CREATION I.E. FY 2009-10, TH E BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT AND RECEIPT A ND ITA-6088/DEL/2010 13 PAYMENT ACCOUNT REVEAL THAT THE SOCIAL AS WELL AS EDUCATIONAL ACTIVITIES HAVE BEEN PERFORMED IN THE I NTEREST OF GENERAL PUBLIC. 11. THUS, THE ASSESSEE HAS ALL THROUGH MAINTAINED T HAT THE ACTIVITIES FOR CREATING INFRASTRUCTURE NECESSARY FOR IMPARTING EDUCATION FOR WELFARE OF THE PUBLIC HAD BEEN STARTED IN THE FIRST YEAR ITSELF AND THAT SUCH ACTIVITIES WERE GENUINE ACTIVITIES. REFERENCE WAS MADE TO THE BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT AND R ECEIPT AND PAYMENT ACCOUNT. HOWEVER, THE LEARNED CIT HAS IGNO RED THESE AVERMENTS OF THE ASSESSEE. 12. APROPOS THE POWERS OF THE TRUSTEES, THESE ARE C ONTAINED AT APB- 12 AND ARE AS FOLLOWS:- POWERS AND DUTIES OF OTHER TRUSTEES : 1. THE BOARD OF TRUSTEES MAY APPOINT ONE OR MORE TRUSTEES AS AND WHEN REQUIRED. 2. THE TRUSTEE SHALL HAVE RIGHT TO SERVE THE TRUST BY FULFILLING THE AIMS AND OBJECTS OF THE TRUST ON BEH ALF OF THE BOARD OF TRUSTEES AND IN FAVOR OF THE BENEFICIARY A S PER AIMS AND OBJECTIVES AND RULES AND REGULATIONS OF TH E TRUST; 3. THAT IF ANY TRUSTEE VIOLATES OR DENIES THE DUTIE S AND DO UNLAWFUL ACTS WHICH IS BEYOND THE RULES OF THE T RUST, HE WILL BE FULLY LIABLE FOR ALL COSTS, DAMAGES, LOSSES FOR THE SAME. 4. BOARD OF TRUSTEES MAY REMOVE ANY TRUSTEE/TRUSTEE S OTHER THAN THE THREE FOUNDER TRUSTEES WITHOUT PRIOR INTIMATION/NOTICE TO THE SAID TRUSTEE AND WITHOUT C ITING ANY REASON. IF THE WORK OF THE ANY TRUSTEE IS NOT SATI SFACTORY AND/OR AGAINST THE PUBLIC POLICY AND TRUST INTEREST S HE SHALL BE IMMEDIATELY REMOVED FROM THE TRUST. 5. THE TRUSTEES WILL SERVE THE TRUST AS PER DIRECTI ON OF THE BOARD OF TRUSTEE AND THE TERMS AND CONDITIONS O F THE TRUST. ITA-6088/DEL/2010 14 6. THE TRUSTEES WILL FOLLOW ALL THE TERMS AND CONDI TIONS OF THE TRUST AND THEY WILL SAVE THE TRUST ACCORDING LY. 7. THE OFFICE OF THE TRUSTEE SHALL BECOME VACANT ON THE HAPPENING OF THE FOLLOWING EVENTS: A. DEATH OF TRUSTEE. B. PHYSICAL OR MENTAL INEFFICIENCY OF A TRUSTEE. C. RESIGNATION OF THE TRUSTEE. D. ON BEING RENDERED INCAPABLE TO PERFORM THE DUTIE S OF THE TRUST. E. IN BEING CONVICTED OF ANY SERIOUS CRIMINAL OFFEN CE INVOLVING MORAL TURPITUDE. F. ON BEING ADJUDGED INSOLVENT. (APB-12) 13. FIRSTLY, IT IS NOT THE LEARNED CITS PURVIEW TO GO INTO SUCH ASPECTS WHILE CONSIDERING THE REGISTRATION OF A TRUST. AS NOTED ABOVE, U/S 12AA, THE ONLY THING IS TO BE SEEN IS THE CHARITABLE OBJE CTS AND THE GENUINE ACTIVITIES OF THE TRUST. OTHERWISE TOO, IT IS SEEN THAT THE POWERS OF THE TRUSTEES EVINCE THAT IF ANY TRUSTEE VIOLATES THE DU TIES AND COMMITS UNLAWFUL ACTS BEYOND THE RULES OF THE TRUST, HE WOU LD BE FULLY LIABLE FOR THE SAME. THE BOARD OF TRUSTEES HAS BEEN EMPOWERED TO REMOVE TRUSTEES OTHER THAN THE FOUNDER TRUSTEES, IF THEIR WORK IS NOT SATISFACTORY AND/OR AGAINST PUBLIC POLICY AND THE I NTEREST OF THE TRUST. WE FIND NOTHING WRONG WITH SUCH POWERS OF THE BOARD OF TRUSTEES. OBVIOUSLY, IF A TRUSTEE ACTS AGAINST THE INTEREST O F THE TRUST OR AGAINST PUBLIC POLICY, HE INVITES REMOVAL FROM THE POST. 14. SO FAR AS REGARDS THE OBJECTION THAT THE PROPER TIES ARE IN THE NAMES OF THE TRUSTEES, THE LEARNED CIT HAS NOT TAKE N INTO CONSIDERATION THE CONVEYANCE DEEDS FILED AT APB-37, 52, 99, 114 A ND 122, COPIES WERE DULY FURNISHED BY THE ASSESSEE TRUST BEFORE TH E LEARNED CIT. AS PER THESE CONVEYANCE DEEDS, THE PROPERTIES ARE IN T HE NAME OF THE TRUST AND NOT IN THE NAMES OF THE TRUSTEES. ITA-6088/DEL/2010 15 15. CONCERNING THE POWER OF THE BOARD OF TRUSTEES T O CONVERT THE TRUST PROPERTY, THIS AGAIN IS A MATTER TO BE GONE I NTO AT THE TIME OF ASSESSMENT. FURTHER, THE POWER IN THIS REGARD IS A GENERAL POWER FOR FACILITATING THE PROPER FUNCTIONING OF THE TRUST. 16. THE PROCEDURE OF REMOVAL OF TRUSTEES (APB-23) I S ALSO SUCH THAT IF THE WORK OF ANY TRUSTEE IS NOT SATISFACTORY OR AGAI NST PUBLIC POLICY AND THE INTEREST OF THE TRUST, THE BOARD OF TRUSTEES MA Y REMOVE HIM BY GIVING ONE MONTHS NOTICE (AS PER AMENDED TRUST DEE D). IF THE RESPONSE OF THE ASSESSEE IS NOT FOUND SATISFACTORY, THE MATTER IS TO BE REFERRED TO AN ARBITRATOR. HERE ALSO, NOTHING WRON G IS FOUND. 17. THE STIPULATION THAT THE TRUSTEES SHALL HOLD TH E TRUST FUND IS ALSO PROPER. SANS THE CLAUSE IN THIS REGARD IN THE TRUS T DEED, THERE WOULD BE NO PROVISION AS TO WHO WOULD HOLD THE FUNDS OF T HE TRUST. 18. IT IS THE OBJECT OF THE TRUST TO ADVANCE LOANS TO DESERVING STUDENTS FOR PURSUING THEIR STUDIES AT NIL/SUBSIDIZ ED LOW RATES AND THE LEARNED CIT HAS GONE WRONG IN OBSERVING THAT THIS I NDICATES THE INTENTION OF THE TRUST NOT TO BE CHARITABLE FROM TH E BEGINNING. 19. APROPOS THE LEARNED CITS OBSERVATION THAT NO D OCUMENTARY EVIDENCE REGARDING THE IDENTITY AND CAPACITY OF THE TRUSTEES TO MAKE INITIAL INVESTMENT IN THE TRUST AND REGARDING THE A MOUNT FOR INITIAL INVESTMENT ACTUALLY MADE BY THE TRUSTEES, ATTENTION HAS BEEN DRAWN TO APB-130 TO 147, WHICH ARE THE CONFIRMATIONS OF THE DONORS FOR CONTRIBUTION TOWARDS THE CORPUS FUND OF THE TRUST. THEN, APB-148 TO 153 ARE THE COPIES OF PAN CARDS OF THE TRUSTEES. T HESE DOCUMENTS HAVE NOT AT ALL BEEN TAKEN INTO CONSIDERATION BY TH E LEARNED CIT WHILE MAKING THE OBSERVATION IN THIS REGARD. BE THAT AS IT MAY, EVEN THIS ITA-6088/DEL/2010 16 MATTER IS TO BE LOOKED INTO AT THE TIME OF ASSESSME NT AND IT IS NOT RELEVANT FOR THE PURPOSE OF GRANT OF REGISTRATION. 20. COMING TO THE CASE LAWS, THE FACTS IN SELF EMP LOYERS SERVICE SOCIETY (SUPRA) ARE NOT AT PARITY WITH THOSE ATTAI NING IN THE PRESENT CASE. THEREIN, NO CHARITABLE WORK WAS DONE BY THE SOCIETY DURING THE FIRST YEAR OF OPERATION AND THERE WAS ONLY A PROPOS AL TO CARRY ON THE CHARITABLE OBJECTS IN FUTURE. BESIDES, THE ACTIVIT IES OF THAT SOCIETY WERE ONLY FOR THE PURPOSE OF GENERATING INCOME FOR ITS M EMBERS. IT IS NOT SO HEREIN. AS NOTED HEREINABOVE, IN THE FIRST YEAR, L AND WAS PURCHASED FOR CARRYING OUT THE CHARITABLE EDUCATIONAL ACTIVITIES. SELF EMPLOYERS SERVICE SOCIETY (SUPRA) IS, THEREFORE, NOT APPLICA BLE AND HAS BEEN WRONGLY APPLIED BY THE LEARNED CIT. 21. IN JUPITER MEDICAL RESEARCH CENTRE TRUST (SUP RA), IT HAS BEEN HELD THAT MERELY BECAUSE ALL TRUSTEES ARE FAMILY ME MBERS, IT DOES NOT MEAN THAT THE TRUST IS NOT A PUBLIC TRUST AND MEREL Y BECAUSE THE ASSESSEE TRUST HAS NOT CARRIED OUT ANY ACTIVITY, IT WOULD NOT MEAN THAT THE TRUST HAS TOTALLY STOPPED ACTIVITY FOREVER AND FOR THAT SO, WITHDRAWAL OF REGISTRATION GRANTED ON THESE GROUNDS COULD NOT BE SAID TO BE JUSTIFIED. 22. IN JASODA DEVI CHARITABLE TRUST VS. CIT', 4 IT R (TRIB.) 547 (JP), IT HAS BEEN HELD THAT THE COMMISSIONER WAS NOT JUSTIFI ED IN REJECTING THE APPLICATION FOR REGISTRATION ON THE BASIS THAT THE TRUST HAD NOT CARRIED OUT ANY CHARITABLE ACTIVITY, WITHOUT APPRECIATING T HAT IT WAS CREATED ON 6.5.2009 ONLY AND WITHOUT AFFORDING AN OPPORTUNITY TO THE TRUST TO MEET THE OBJECTION REGARDING ITS ACTIVITIES. SELF EMPL OYERS SERVICE SOCIETY (SUPRA) HAS BEEN REFERRED TO THEREIN. ITA-6088/DEL/2010 17 23. IN GARDEN CITY EDUCATIONAL TRUST (SUPRA), IT HAS BEEN OBSERVED THAT WHILE REGISTRATION IN ACCORDANCE WITH SECTION 12 OF THE ACT IS A CONDITION PRECEDENT FOR CLAIMING THE BENEFITS U/S 1 1 & 12 OF THE ACT, REGISTRATION AS PER SECTION 12A BY ITSELF WILL NOT AUTOMATICALLY CONFER THE BENEFITS OF SECTION 11 & 12 OF A TRUST, BUT THE TRUST WILL GET THE BENEFIT ONLY ON COMPLYING WITH THE REQUIREMENTS OF SECTIONS 11 & 12 OF THE ACT, WHICH COMPLIANCE CAN BE EXAMINED BY THE AS SESSING AUTHORITY, WHILE PROCESSING THE RETURN FILED BY THE TRUST. IN THE PRESENT CASE, AS SEEN, THE GROUNDS FOR REFUSING REGISTRATIO N ARE THOSE AS CALL FOR EXAMINATION BY THE AO U/S 11 & 12 OF THE ACT AND NO T WHILE CONSIDERING REGISTRATION U/S 12AA OF THE ACT. 24. IN VIEW OF THE ABOVE, FINDING MERIT THEREIN, TH E GRIEVANCE SOUGHT TO BE RAISED BY THE ASSESSEE IS ACCEPTED AS JUSTIFI ED. ACCORDINGLY, THE ORDER OF LEARNED CIT IS REVERSED. CONSEQUENTLY, TH E LEARNED CIT IS DIRECTED TO GRANT REGISTRATION AS CLAIMED BY THE AS SESSEE TRUST. 25. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 10 TH JUNE, 2011. SD/- SD/- (G.E.VEERABHADRAPPA) (G.E.VEERABHADRAPPA) (G.E.VEERABHADRAPPA) (G.E.VEERABHADRAPPA) (A.D.JAIN) (A.D.JAIN) (A.D.JAIN) (A.D.JAIN) V VV VICE PRESIDENT ICE PRESIDENT ICE PRESIDENT ICE PRESIDENT JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 10.06.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR