Loading judgment…
No AI summary yet for this case.
Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.
आदेश/Order
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 23.05.2019 of the Commissioner of Income Tax (Exemptions), Chandigarh [hereinafter referred to as ‘CIT(E)’].
The assessee in this appeal has contested the action of the CIT(E) in rejecting the application of the assessee for registration as a -Chd-2019 Madhav Helping Hands Foundation, Patiala 2 Charitable Trust u/s 12A of the Income Tax Act, 1961 (in short 'the Act'). The Ld. CIT (E) has rejected the application of the assessee solely on the ground that the assessee trust has been established for the purpose of discharge of Corporate Social Responsibility by its controlling company.
Admittedly, the aims and objects of the assessee trust are to provide any type of vocational skills, training, emotional skill training, to promote spiritual, physical, mental, educational development and uplifts of adults and children of all ages without any distinction of caste, creed or religion and in the interest of general mankind, to aid or establish, take over or collaborate with any institution or school or association, for physical mental, spiritual, educational development, uplift of intellect or its development, to aid or establish any institution or adopt means for imparting and/or promotion of any art, science or other field of education.
Now it is settled law that merely because of the fact that the applicant company has been established to comply with the CSR obligations, the registration u/s 12AA of the Act cannot be denied, particularly when CSR activities are charitable activities as defined under the Act. Reliance in this respect can be placed in the case of ‘Escorts Skill Development vs CIT (Exemptions), Chandigarh’ (Del – ITAT 2019 ITL 3498 : (2019) 178 ITD 32 and ‘Nanak Chand Jain -Chd-2019 Madhav Helping Hands Foundation, Patiala 3 Charitable Trust v CIT’ (2018) 91 taxmann.com 197 (Delhi-Trib).
The Ld. Departmental Representative could not rebut that the aims and objects of the assessee society are charitable in nature.
In view of this, the findings arrived at in the above cited case laws are squarely covered and applicable to the case of the assessee. Accordingly, the impugned order of the CIT (E) is set aside and the Ld. CIT (E) is directed to grant registration to the assessee trust u/s 12A of the Act.
In the result, the appeal of the assessee stands allowed.
Order pronounced on 02.03.2021