Income Tax Appellate Tribunal - Kolkata
Rp Sanjiv Goenka Group Csr Trust, ... vs Assessee on 4 March, 2016
I . T. A . N o s . 1 4 5 6 & 1 4 5 7 / KO L . / 2 0 1 5
Page 1 of 4
IN THE INCOME TAX APPELLATE TRIBUNAL,
KOLKATA 'A' BENCH, KOLKATA
Before Shri P.M. Jagtap, Accountant Member
and Shri S.S. Viswanethra Ravi, Judicial Member
I.T .A. Nos. 1456 & 1457/KOL/ 2015
RP-San jiv Goenka Group CSR Trust,.......... .....................................Appellant
CESC House,
Chowringhee Squ are ,
Kolkata-700 001
[PAN: AACTR 5263 J]
-Vs.-
Commissioner of Inc ome Tax (E xemptions),Kolk ata,....................Respondent
10B, Middleton Row,
Kolkata-700 071
Appearances by:
Shri D.S. Damle, FCA, for the assessee
Shri Rajat Subhra Biswas, CIT, D.R., for the Department
Date of concluding th e hearing : February 22, 2016
Date of pronouncing the order : March 04, 2016
O R D E R
Per Shri P.M. Jagtap :-
These two appeals filed by the assessee are directed against two separate orders passed by the ld. Commissioner of Income Tax (Exemptions), Kolkata both dated 30.09.2015, whereby he rejected the application filed by the assessee for grant of registration under section 12AA and consequently rejected the application of the assessee for grant of approval under section 80G(5)(vi).
2. The assessee in the present case is a Public Charitable Trust, which has been duly constituted under the Deed of Trust dated 07.02.2015. It filed an application with the Commissioner of Income Tax (Exemptions) for registration under section 12A in the prescribed Form No. 10A on 23.03.2015. The said application was, however, rejected by the ld.
I . T. A . N o s . 1 4 5 6 & 1 4 5 7 / KO L . / 2 0 1 5 Page 2 of 4 CIT(Exemptions) for the following reasons given in his impugned order passed under section 12AA of the Act:-
"On going through the Trust Deed submitted by the applicant Trust, dissolution clause was found to be as follows:-
"In case of dissolution of Trust, the remaining assets of the Trust, after meeting all the debts and liabilities, will be distributed and/or donated to such organisation(s), which are registered under section 12AA of the Income Tax Act, 1961".
This clause does not mention about the majority who will decide the dissolution of trust. Hence the Deed of the Trust is found to be defective. Hence, I am not satisfied with the applicant Trust as genuine".
3. Consequently the ld. CIT(Exemptions) also rejected the application filed by the assesese for grant of approval under section 80G(5)(vi) of the Act vide a separate order passed simultaneously. Aggrieved by the orders of the ld. CIT(Exemptions), the assessee has preferred this appeal before the Tribunal.
4. We have heard the arguments of both the sides and also perused the relevant material available on record. As agreed by the ld. Representatives of both the sides, the issue involved in the appeal of the assessee relating to the grant of registration under section 12AA is squarely covered in favour of the assessee by the decision of Mumbai Bench of this Tribunal in the case of Tara Educational and Charitable Trust -vs.- Director of Income Tax (Exemptions) rendered vide its order dated 18.07.2014 in ITA No. 1247/Mum./2013, wherein the order of the ld. DIT(Exemptions) rejecting the application of the assessee for registration under section 12A for the similar reasons as given in the present case was set aside by the Tribunal with a direction to grant registration to the assessee under section 12A for the following reasons given in paragraph no. 4 of the order:-
I . T. A . N o s . 1 4 5 6 & 1 4 5 7 / KO L . / 2 0 1 5 Page 3 of 4 "4. We have heard the argument s of both the sides and also perused the relevant mat erial availabl e on reco rd. It is observed th at the applicatio n filed by the assessee u/s 12A of the Act h as been rejected by the Id. DIT (Exemptions) mainly on the ground that the relevant T rust Deed does not contain the so-called "dissolut ion clause". As per the pro visions of sectio n 11 & 12 of the Act, income derived from pro perty hel d fo r charit able or religious purposes and income of Trusts or Instit utions from contributions are exempt from tax pro vided such Trusts o r Institutions are registered u/s 12A of the Act . The procedure for registration u/s 12A is prescribed in section 12AA of the Act which provides th at the Commissio ner, on the receipt of an application fo r regist ratio n of a Trust or Institut ion made u/s 12A, shall call for such info rmation from the Trust/Institutio n as he thinks necessary in order to satisfy himself about the genuineness of activities of th e Trust/Institutio n and may also make such inquiries as deemed necessary on this behalf. It further provide s that after satisfying himself about the objects of the Trust/Institutio n and the genuineness of its activit ies, the Commissioner shall pass an order in writing regist ering th e Trust/Institutio n u/s 12A and if he is not so satisfied, he shall pass an o rder in writing refusing to register the Trust/Institutio n. Th e scope of enquiry contemplated u/s 12AA of the Act thus is limited to the extent of Commissioner getting himself satisfied abo ut object of the Trust and the genuineness of its activities so as to grant o r refuse the regist ratio n u] s 12A of the Act. A peru sal of the impugned o rder of the Id. DIT (Exemptions), however, shows that he h as not reco rded any adverse comment or dis-satisfaction abo ut the object of the Trust o r genuineness of the T rust activities. He h as refused to grant the registration u/s 12A of the Act on th e ground th at its Trust Deed does not contain "dissolution clause". In our opinion, the Id. DIT (Exemptions) th us has clearl y gone beyond the sco pe of enquiry contemplated u/s 12A of the Act and h as refused t o grant the regist ration u/s 12A of the Act to the assessee Trust on a tot ally irrelevant ground without pointing out as to how he was not satisfied either about the object of the Trust o r the genuineness of its activit ies. We th erefore set aside the impugned order of the Id. DIT (Exemptions) and direct that the registration u/s 12A of the Act as applied by th e assessee T rust be granted" .
As the issue involved in the present case as well as the material facts relevant therein are similar, respectfully following the order of the Coordinate Bench of this Tribunal in the case of Tara Educational and Charitable Trust (supra), we set aside the impugned order of the ld. CIT(Exemptions) with a direction to grant registration to the assessee I . T. A . N o s . 1 4 5 6 & 1 4 5 7 / KO L . / 2 0 1 5 Page 4 of 4 under section 12A. The ld. CIT(Exemptions) is also directed to grant approval to the assessee under section 80G(5)(vi) as a necessary corollary.
5. In the result, both the appeals of the assessee are allowed.
Order pronounced in the open Court on March 04, 2016.
Sd/- Sd/-
(S.S. Viswanethra Ravi) (P.M. Jagtap)
Judicial Member Accountant Member
Kolkata, the 4 t h day of March, 2016
Copies to : (1) RP-San jiv Goenka Group CSR Trust,
CESC House,
Chowringhee Squ are ,
Kolkata-700 001
(2) Commissioner of Inc ome Tax (E xemption ), Kolkata,
10B, Middleton Row,
Kolkata-700 071
(3) Commissioner of Inco me-t ax (Exemptions), Kolkata
(4) Commissioner of Income Tax, Kolkata
(5) The Depart ment al Represent ative
(6) Guard File
By order
Assistant Registrar,
Income Tax Appellate Tribunal,
Kolkata Benches, Kolkata
Laha/Sr. P.S.