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Showing contexts for: charitable trust objects in New Shreyas Education Society, Mumbai vs Cit (E) , Mumbai on 4 October, 2019Matching Fragments
5. erred in holding that the activities of the Appellant Trust are not in accordance with objects of the Trust on the ground that principal object of the Trust was to run school, and till now Appellant has never run school nor took permission to run school, without appreciating that building premises has been used by Charitable Trust for running school for over 42 years;
6. should have appreciated that Appellant has carried out its charitable activities in
4|Page I T A N o . 5 8 0 8 / Mu m / 2 0 1 8 accordance with object of the trust and has used properties held under the trust only for its charitable objects pertaining to education;
11. The learned Counsel stated that various old document which were not available with the New Trustee, which could not be compiled due to shortage of time has been compiled and titled as additional evidence before the Tribunal vide letter dated 05.06.2019 as per Rule 29 of the Income tax Appellate Tribunal Rules, 1963. The CIT(E), at the stage of registration or modification in object, is not supposed to inquire into the conduct of charitable or other activities to be performed by a trust or institution which has submitted application for registration. It was contended that the CIT(E)'s powers during the time of granting registration or modification of object is restricted and CIT(E) shall only examine whether the application has been submitted in accordance with the requirement of the statue. The CIT(E) cannot inquire into conduct of charitable activities performed by the Trust, which is to be done subsequently by the AO. During the FY 2017-2018 there was change proposed in the objects of the trust and as per the requirement of section 12A(1)(ab) of the Act, which was inserted with effect from 01.04.2018 vide Finance Act, 2017, the Trust was required to obtain approval of the CIT(E) on change in object of the Trust. The relevant section 12A(1)(ab) of the Act is reproduced as under.
19. The trustees held discussions with different schools like Deutscher Schulverein in Bombay (DBS) School, for starting of school for fulfilling objects of its trust and also for purpose of raising funds/resources for utilizing it for charitable objects. Discussion with DBS school materalised and Trust let out on leave and license basis its premises to DBS school for running school on Ground and from 2nd to 5th Floor for imparting education to children and it was also agreed with the DBS School that to meet their requirement and specification they could refurbish the 2nd to 4th floor and then 5th floor (Copy of the agreement entered into with DBS School with trust is at pages 391 to 446 of the assessee's paper book) and agreement entered into by DBS School with Umiya Enterprises for refurbication of premises as per their requirement is at pages 384 to 390 of the assessee's paper book).
• American Hotel & Lodging Association Educational Society (301 ITR 86) (SC) • Queen's Education Society (372 ITR 699) (SC)
25. CIT(E) in its order has stated that the assessee has by way of amending the objects has removed its primary object of Starting of School and activities not being carried out in accordance with objects is itself a ground for cancellation of existing registration under section 12AA (3). Which is factually incorrect and Trust has enlarged its object to provide other charitable activities including imparting of education.