JPP ALUMNI FOUNDATION,PUNE vs. COMMISSIONER OF INCOME TAX(EXEMPTION) PUNE, PUNE

IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH “A”, PUNE

BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER

आयकर अपील सं. / ITA No.1424/PUN/2024

JPP Alumni Foundation,
510, Sadashiv Peth, Hatti
Ganpati, Pune- 411030. PAN : AAFCJ1183P
Vs. CIT, Exemption, Pune
Appellant

Respondent

आदेश / ORDER

PER VINAY BHAMORE, JM:

This appeal filed by the assessee is directed against the order dated 30.06.2023 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.
2. There is a delay of 176 days in filing of the present appeal. In this regard, the assessee company has furnished application for condonation of delay duly supported with an affidavit. We are satisfied with the reasons mentioned in application for condonation of delay and in the interest of justice as well as with the consent of Assessee by : Shri Abhay Avachat
Revenue by : Shri Amol Khairnar

Date of hearing
: 17.02.2025
Date of pronouncement : 28.03.2025
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Ld. DR, we condone the delay of 176 days and admit the appeal for adjudication.
3. Facts of the case, in brief, are that the assessee is a non-profit company registered under the provisions of section 8 of the Companies Act, 2013. The asseseee company filed application for registration in Form No.10AB under clause (iii) of section 12(1)(ac) of the IT Act on 30.12.2022. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 15.03.2023
requesting the assessee to upload certain information/clarification.
The desired information was furnished by the assessee. On verification of said information, Ld. CIT, Exemption, Pune found that object nos.17 to 24 are prima-facie commercial in nature and not for charitable purposes. In response to above notice, the assessee company furnished reply and assured that the company will get the memorandum of association amended. After considering the reply of the assessee, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the 3
provisional registration granted u/s 12AB read with section 12A(1)(ac)(vi) of the IT Act by observing as under :-
“The response of the assessee has been carefully perused. The assessee has contingent that the objects of the company and other lawful things are to distinct things. Though, it is understood that the other lawful things are defined separately than the objects, the very body of MoA at 3B clearly specifies such other lawful things to be necessary for furtherance of objects of the company. It is needless to mention that the objects and the means to achieve the said objects are expected to go hand in hand especially when aimed at arriving a charitable purpose.
A careful perusal of all the objects especially from object no. 17 to object no. 20 and the ones mentioned at Sl. No. 23 and 24 clearly indicates that the same can clearly construed to be the objects aimed at commercial intent. The object no. 17 provides to sell, manage, improve, develop, exchange, loan, let, sublet, mortgage and even dispose off any property of the company. The object no. 18 provides for purchase or otherwise acquired contract and sub-contract. The object no. 19
directly provides acquisition for patents, rights and trademarks. The object no. 20 again provides for acquisition, holding, purchase and convergence in stocks, shares and securities. Object no. 24 goes to the extent of creation of the fund for redemption of debentures or redeemable preference shares.
The way these objects and the activities for furtherance of the objects have been termed and worded is clearly indicative of a futuristic commercial intent. The very fact that the assessee company in the submission itself has stated to amend the MoA by deleting some of the clauses is a sufficient reason to establish that a sizeable number of the MoA have clearly drifted away from the charity and charitable purpose as defined in IT Act, 1961. The objects and other lawful things in its present form and forming part of the MoA can't be stated to be the ones aimed at charitable purpose. Hence, the undersigned is of the belief that the same do not qualify to be registered u/s 12AB of the IT Act,
1961. In view of the discussion above, the application filed by the assessee trust u/s 12A(1)(ac)(iii) of the IT Act, 1961 is hereby rejected and the provisional registration granted is also cancelled.”