MEERABO GLOBAL FOUNDATION,BANGALORE vs. CIT, BANGALORE

PDF · subscribers
ITA 129/BANG/2015Status: DisposedITAT Bangalore31 August 20154 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee had fulfilled all the necessary requirements and the CIT(Exemption) had wrongly concluded that the applicant was not interested. The Tribunal set aside the CIT's order and directed him to re-examine the Trust Deed.

What were the facts?

The assessee, Meerabo Global Foundation, applied for registration under Section 12A of the IT Act. The CIT(Exemption) rejected the application, citing defects in the Trust Deed and lack of diligence from the applicant.

What were the issues?

Whether the Trust Deed contained the necessary clauses for registration, and whether the assessee demonstrated sufficient diligence in pursuing the application.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AA(1)(b)(ii)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(4)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

  • CIT v. B.N. Bhattacharya & Another
    118 ITR 461 · 1997 · SC
    1,656 citing
  • 106 ITR 653
    106 ITR 653 · SC
    5 citing
  • 257 ITR 301
    257 ITR 301 · HC
    5 citing
  • 286 ITR 688
    286 ITR 688 · HC
    5 citing

Income Tax Appellate Tribunal, BANGALORE BENCH ‘A’, BANGALORE

Before: SMT. ASHA VIJAYARAGHAVAN, JM & SHRI S. RIFAUR REHMAN, AM

For Appellant: Shri Satish R Mody, Advocate
For Respondent: Smt Neera Malhotra, CIT

This appeal has been filed by the assessee against the order of the CIT(Exemption), Bangalore dated 29-12-2014 passed u/s 12AA(1)(b)(ii) of the IT Act, 1961, wherein the application for registration of the trust was rejected.

2.

The assessee M/s Meerabo Global Foundation has filed an application on 03-06-2014 for registration of charitable or religious trust or institution u/s 12A of the IT Act, 1961.

3.

The CIT(Exemptn.), Bangalore held that the application filed is defective and the copy of the Trust Deed filed is defective in a much as the necessary clauses required to be incorporated in the Deed are not forth coming. It was observed by the CIT(Exemptn.) that the necessary clauses to be incorporated in the Deed are 1) Investment clause 2) Account clause 3) Amendment clause 4)

Dissolution clause 5) Irrevocability clause 6) Beneficiary clause and 7) Utilization clause. In this connection, the applicant was afforded opportunities of being heard by the CIT(Exemptn.)

4.

The CIT(Exemptn.) has held as under;

“ The non-compliance to the statutory requirements, it is clear that the applicant is not interested in prosecution of this application and therefore, deserves to be dismissed on this account alone. The law assists those who are vigilant and not those who sleep over their rights. This principle is embedded in the well known dictum “Viglantus non-dormantibus subveniunt”. Courts in several cases cases have upheld this dictum. Lack of diligence and follow up on the part of the assessee has been frowned upon by various courts a under; 106 ITR 653 (SC) 118 ITR 461(SC) 286 ITR 688 (MP) 257 ITR 301(Delhi) S130 Tax man 61 (Mad.)

The application for registration u/s12AA is hereby stands rejected.

Aggrieved, the assessee preferred an appeal before the Income-tax Appellate Tribunal.

The learned counsel for the assessee took us through the Trust Deed produced at pages 19 to 48 of the paper book. He further pointed out the various clauses which are incorporated in the Deed which have been overlooked by the CIT(Exemptn.)

On the request from the Bench, the learned counsel has produced the details as under; Sl.Nos. Paper book Page no. Clause No. of Trust Deed 1. Investment Clause 41 23 2. Account Clause 41 21 3. Amendment Clause 48 35 4. Dissolution Clause 47 34(e) 5. Irrevocability Clause - A Trust is always irrevocable unless specifically provided 6. Beneficiary Clause 27 4(a) 7.Utilization Clause 27 4

We find that the assessee has fulfilled all the requirements and the CIT(Exemptn.) has wrongly observed that the applicant is not interested in prosecution of his application, especially when all the details have been given by the applicant.

In these circumstances, we set aside the issue to the CIT(Exeptn.)and direct him to examine the indenture of Trust in order to grant registration u/s 12A of the IT Act, 1961.

8.

In the result, the appeals filed by the assessee are allowed for statistical purposes.

Order pronounced in the open court on the 31st August, 2015.

More judgments on Section 12A

All 6,064 judgments and leading authorities on Section 12A →

Recent GST High Court judgments

Search GST case law →