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3. Before us, the ld. Counsel for the assessee has submitted that the ld. CIT (Exemptions) has not disputed the charitable nature of objects of the Trust, even by considering the objects the registration under section 12AA(1)(b) was granted to the assessee. Since the assessee trust was yet to commence the activity, therefore, the approval under section 80G(5) was denied. The ld. Counsel has submitted that when the ld. CIT (Exemptions) has not found any violation of provision of section 80G(5) then the approval cannot be denied solely on the ground that the assessee has not carried out any activity. In support of his contention, he has relied upon the decision of Visakhapatnam Bench of the Tribunal dated 06.12.2017 in case of Mattapali Chalmayya Charitable Trust vs. CIT (E) in ITA No. 234/VIZAG/2017 and submitted that the Tribunal held that if the activities of the assessee trust are genuine at the stage of commencement of the institution, registration has to be Badri Narain Kanta Devi Katta Charitable Trust, Jaipur.

has also relied upon the decision of Hon'ble Delhi High Court in case of Kirti Chand Tarawati Ch. Trust vs. DIT, 105 Taxman 686 (Delhi) and submitted that the Hon'ble High Court has upheld the order of refusing the approval under section 80G when the activities of the Trust/Institution were not carried out as per the objects though registration under section 12AA was granted to the said Institution. He has supported the impugned order of the ld. CIT (Exemptions).

5. We have considered the rival submissions as well as the relevant material on record. The ld. CIT (E) has not disputed the objects of the assessee trust being charitable in nature. These objects have been reproduced by the ld. CIT (E) in the impugned order and based on these objects, the registration under section 12AA was granted vide even date order by the ld. CIT (Exemptions). The only objection on which the approval under section 80G(5) was denied has been discussed in para 4 & 5 of the impugned order as under :-

5. As discussed above, no significant activity has been started by the applicant as per the objects. Thus, the basic condition u/s 80G is Badri Narain Kanta Devi Katta Charitable Trust, Jaipur.

not fulfilled. Considering this, the case is not fit for granting exemption u/s 80G at this stage."

Thus it is clear that the ld. CIT (Exemptions) has not doubted the charitable nature of the objects of the assessee trust but since no significant activity has been started by the assessee, it was held that the condition under section 80G(5) is not fulfilled. It is pertinent to note that if there is a substantial gap between the registration under section 12AA and the application for approval under section 80G, then the mere grant of registration under section 12AA will not automatically create a right of getting approval under section 80G(5) of the Act but the ld. CIT (Exemptions) has to see whether the activity of the Trust has been carried out as per objects and for achieving the objects of the assessee trust. In the case in hand, the assessee applied for registration under section 12AA as well as approval under section 80G(5) of the Act on the same date vide two separate applications both dated 15th February, 2018. Therefore, there was no new development to be verified by the ld. CIT (E) after grant of registration under section 12AA for the purpose of granting approval under section 80G(5) of the Act. Once the objects of the assessee trust are found to be charitable, then non-start of the activity by the assessee trust cannot be a reason for denial of approval when on the basis of same set of facts, the registration under section 12AA was granted by the ld. CIT (E). The situation would have been different if registration was granted on the basis of the objects of the Trust and subsequently the trust has started its activity and on verification if it was found that the activities of the assessee trust are not being carried out as per the Badri Narain Kanta Devi Katta Charitable Trust, Jaipur.