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Showing contexts for: charitable trust objects in Credit Guarantee Fund Trust For Micro ... vs Dcit (E) , Mumbai on 24 November, 2023Matching Fragments
(i) the objects of the Trust are covered within the meaning of charitable purpose and the Trust was granted registration u/s. 12A of the Act. The Hon'ble ITAT has held in the appellant's own case for AY 2010-11, AY 2011-12 and AY 2014-15 that the proviso to section 2(15) of the Act cannot be invoked in appellant's case and that it is eligible for the benefits of sections 11 and 12 of the Act.
(ii) There is no change in the activity undertaken by the appellant trust during FY 2017-18 as compared to the previous years in respect of which cancelation of registration was restored. Thus, there is no reason for invoking the provisions of section 2(15) of the Act as said facts are already decided by the appellate authorities and accepted by the Income Tax Department in preceding year.
(iv) the services rendered by the appellant Trust are purely incidental or subservient to the main objects of the Trust which is a "charitable purpose" and that the fees received by the trust is only to recover the administrative operational cost and not to earn any profit or as a business activity.
(v) that the amended proviso to section 2(15) w.e.f. 01.04.2016 does not affect the position of the appellant trust as it does not carry on any trade, commerce or business as held by the Hon'ble ITAT vide order dated 20.01.2017 in appellant trust's own case in ITA No. 6282/Mum/2014 for AY 2010-11.
(1) that the assessee trust having charged substantial guarantee fee is not into any charitable activities and (2) that he has invoked proviso to section 2(15) of the Act also.
14. The Ld. A.R. for the assessee challenging the denial of benefit of section 11 & 12 of the Act by invoking the proviso to section 2(15) of the Act contended inter-alia that proviso to section M/s. Credit Guarantee Fund Trust For Micro And Small Enterprises 2(15) of the Act cannot be invoked in case of the assessee it being a charitable trust granted registration under section 12A of the Act and identical issue has already been decided in favour of the assessee in assessee's own case for A.Y. 2010-11, 2011-12 & 2014- 15; that there is no change of activities undertaken by the assessee during the year under consideration vis-a-vis earlier years; that assessee's trust has no profit motive whatsoever so as to hit by proviso to section 2(15) of the Act, rendering of services to trade, commerce or business; that services rendered by the assessee trust are purely institutional or subservient to the main objects of the trust which are "charitable purposes"; that objects of the trust are to be considered for the benefit of underprivileged class of people and also falls within the meaning of relief to poor referred to in section 2(15) of the Act and the Central Board of Direct Taxation (CBDT) has issued circular vide circular No.11/2008 dated 19.12.2008 clarified that newly inserted proviso to section 2(15) of the Act will not apply in respect of 1st three limbs of section 2(25) of the Act i.e. relief of the poor, education or medical relief; that the Ld. CIT(A) has erred in not following the order passed by the Tribunal in assessee's own case for A.Y. 2010-11, 2011-12 & 2014-15 wherein it is held that proviso to section 2(15) of the Act cannot be invoked in case of the assessee.
17. When we examine the contentions raised by the Ld. A.Rs for the parties to the appeal it has become clear on record that on the basis of objects of the activities of the assessee trust is a charitable trust as this issue has been decided by the Tribunal vide order dated 28.05.2014, which has been confirmed by the Hon'ble Bombay High Court vide order dated 02.08.2017 available on record at page 77 of the paper book. So the findings returned by the Ld. CIT(A) in the impugned order that "the assessee trust is not carrying out any charitable activity" are not sustainable. Moreover, the Ld. CIT(A) has not given any reason for this finding rather intermingled this finding with the issue if the claim of the assessee for exemption under section 11 is hit by proviso to section 2(15) of the Act. Now the sole question arises for determination in this case is as to whether: