SVNIT ALUMNI ASSOCIATION SURAT CHAPTER,SURAT vs. CIT(EXEMPTION), AHMEDABAD

5. Appellant craves leave to add, alter or delete any ground(s) either before of in the course of the hearing of the appeal.”

3. The grounds of appeal

raised by the assessee in are as follows:

1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption), Ahmedabad has erred in rejecting Application for registration u/s 80G(5)(iii) of the Income Tax Act, 1961.

2. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Exemption), Ahmedabad has erred in not granting adequate opportunity of hear and passed the order, hence, the principal of natural justice is not abide.

3. On the facts and in the circumstances of the case as well as law on the subject, the appellant Trust is qualifying for registration u/s 80G(5)(iii) of the Income Tax Act, 1961.

4. It is therefore prayed that the CIT(Exemption) should be directed passed u/s 80G of the Income Tax Act, may please be set aside to the file of the CIT(Exemption) with appropriate direction.

5. Appellant craves leave to add, alter or delete any ground(s) either before of in the course of the hearing of the appeal.”

4. The fact of the case in brief are that the assessee filed an application for registration/incorporation in Form No.10AB u/s 12A(1)(ac)(iii) of the Act on &1077/SRT/2024 SVNIT Alumni Association Surat Chapter 29.03.2024. The assessee-trust had been granted order of provisional approval in Form No.10AC on 27.09.2023 under sub-clause (vi) of clause (ac) of sub- section (1) of section 12A of the Act for the period commencing from AY.2024- 25. In respect of the application filed by the assessee-trust in Form No.10AB, the assessee-trust was asked by CIT(E) to file details and documents vide notice dated 03.07.2024 and 09.09.2024. In response to the said notices, the assessee filed part details. On perusal of details and objectives of the applicant as mentioned in the Memorandum of Association (MoA), it was found that the objectives/objects of the applicant are for the benefit of the member of trust, i.e., past and former students of SVNIT. Hence, show cause notice was issued by the CIT(E) on 09.09.2024, which is at para 6.2 of the order. Reply of appellant is a para 6.3 of the order. The appellant submitted the main aims and objects of the association shall be to take measures, do all acts, deeds and things to improve and maintain the social, economic, physical and moral, cultural life and upliftment of general public without any discrimination. The trust is encouraging poor students in tribal area regularly. The CIT(E) did not find reply of the assessee as acceptable. He observed that the trust has been formed as association to protect the interest and welfare of its member, which can hardly be considered as charitable in nature, particularly when essence of altruism is absent for the same. He held that the objects are not for the benefit of public at large. The object is related to mutually beneficial activities for the upliftment of the career of each member of the association. The &1077/SRT/2024 SVNIT Alumni Association Surat Chapter members of the Alumni Association are also office bearer of the association. The other objects of the association are also for the benefit of members and not for the benefit of public at large. In view of the objects in MoA, the CIT(E) was of the opinion that objects are not for general public utility and are not for charitable purposes as defined u/s 2(15) of the Act. Hence, assessee was not eligible for registration u/s 12A of the Act. Therefore, application filed in Form No.10AB u/s 12A(1)(ac)(iii) of the Act was rejected and provisional registration was also cancelled.

4. Aggrieved by the order of CIT(E), the assessee filed appeal before the Tribunal. The learned Authorized Representative (ld. AR) submitted a paper book giving various details including the Memorandum of Association, activities of SVNIT Alumni Association, undertakings of the trust, audit report of the association for the year 31.03.2024, provisional registration u/s 12A(1)(ac)(vi) and 80G(5)(vi). The ld. AR also relied on the decisions in the cases of (i) Shah Gulabchand Shree Parshwanath Trust vs. CIT(E), 165 taxmann.com 731 (Surat – Trib.), (ii) Shree Bhandari Gnyati Mandal vs. CIT(E), (Ahd – Trib.) and (iii) Parul University Alumni Association vs. CIT(E), (Ahd – Trib.). The ld. AR submitted that the CIT(E) has rejected the application for registration only on the basis of one object out of the 15 objects of the association. The objects are to be seen as whole and not in isolation. The ld. AR has submitted an analysis of the objectives of the trust and argued that only object at Sr. No.15 may be &1077/SRT/2024 SVNIT Alumni Association Surat Chapter considered as being for the benefit of the Alumni. He, therefore, requested to set aside the order of the CIT(E) and allow registration to the appellant. The analysis submitted by the ld. AR is as under: This Analysis is for representative purpose and can be add/altered and is/for Preliminary analysis purpose 1. To conduct all kinds of programs to Education, General encourage students to research in the field of public utility science, engineering and technology 2. To provide financial assistance and General public utility, scholarships to poor and needy current and education former students and others to encourage them in their research. To help all those who want to do research in the field of science, engineering and technology in all ways.

7. To conduct cultural recreational and health Education, General activities for the members and students of the public utility college 8. To organize educational and exploratory Education tours for the members and students of the college 9. To fulfil social responsibilities towards society General public utility 10. To honour and reward former students who General public utility have achieved special achievement in any field and to provide a platform for discussion and consideration among them 11. To promote entrepreneurship and innovation Education &1077/SRT/2024 SVNIT Alumni Association Surat Chapter among students 12. To persuade alumni to participate in activities General public utility that contributes to the development of the college and society 13. To make efforts to solve the difficulties and General public utility, problems encountered in the field of education education and activities to promote it 14. Providing employment opportunities to General public utility students and showing their problems 15. To carryout such functions as may be lawfully General public utility expedient to carry out the objects of the Association and in the interest of the Alumni 5. On the other hand, learned Commissioner of Income-tax - Departmental Representative (ld. CIT-DR) for the revenue submitted that the Bench may take appropriate decision.

8. Facts of the case are that assessee had filed Form No.10AB u/s 80G(5) of the Act on 27.10.2023. The date of registration in this case was 01.12.2021. The applicant had been granted provisional approval on 16.12.2022 in Form No.10AC under clause (vi) of first proviso to section 80G(5) of the Act for the period commencing from AY.2022-23. Vide notice dated 12.01.2024, the CIT(E) intimated the applicant that the date of commencement of activities should be six months prior to date of filing of Form 10AB. He requested as to &1077/SRT/2024 SVNIT Alumni Association Surat Chapter why the application filed in section 80G(5)(iii) in Form 10AB should not be treated as not filed and be not rejected. The appellant did not file any response to the above notice of the CIT(E). Thereafter, the CIT(E) observed that appellant was required to file application in Form 10AB on or before 30.09.2022, which it failed to submit. As the application was not filed before 30.09.2022 within the extended time limit as per Circular No.8 of 2022, the application was rejected without going into the merits of the case. The provisional approval was also cancelled.