M/S GLOBAL HANDS FOR RURAL DEVELOPMENT,KANGRA vs. CIT (EXEMPTIONS), CHANDIGARH

Per Sanjay Garg, Judicial Member:

The above captioned appeals have been preferred by the assessee against the separate orders dated 28.04.2016 of Commissioner of Income Tax (Exemptions), [hereinafter referred to as ‘CIT(E)’], Chandigarh.

ITA Nos. 812 & 823/Chd/2016 Global Hands for Rural Development, Kangra 2

assessee trust claims itself to be a charitable trust with its aims and objects

to promote all aspect of social work and in particular to ensure

participation and coordination of volunteers of different disciplines in

development of communities in rural development. The objects further

intend inter alia to promote social and gender equality through social

awareness campaigns, to organize people against exploitation and social

evils especially those who are backwards, to promote the cause of national

integration and national reconstruction, to protect the cultural heritage and

to promote their scientific temper. The stated aims further profess to

establish, promote, set up, run, maintain, assist, financial support and or

aid to or help in setting up and / or running schools or other institutions,

orphanage, widow homes, lunatic asylum, poor houses or other

establishment for relief and / or help to poor, old and infirm people and /

or destitute. The Ld. Counsel for the assessee has submitted that the Ld.

CIT(E) has denied the registration u/s 12A to the applicant mainly on the

ground that the assessee could not demonstrate with convincing evidence

about the charitable activities carried out by the assessee trust since its

inception. Further, Ld. CIT(E) also doubted the infrastructure available to

the assessee for carrying out the activities including the running of a

orphanage house. The Ld. CIT(E) also observed that there was no

dissolution clause in the trust deed. The Ld. Counsel for the assessee has

further submitted that earlier the assessee trust was in its nascent years,

hence, could not demonstrate about the various activities carried out by it.

However, by the time, the trust has carried out various charitable activities

and further that it has also amended its deed to include the dissolution

ITA Nos. 812 & 823/Chd/2016 Global Hands for Rural Development, Kangra 3

clause. The Ld. counsel, therefore, has submitted that the applicant trust be

given an opportunity to demonstrate to the CIT(E) that it has been actually

carrying out the charitable activities.

the CIT(A).

assessee trust should be given an opportunity to demonstrate before the

CIT(E) about the charitable activities carried out by it till date. Further,

the applicant-trust also wants to furnish about the evidences of amendment

of trust deed regarding the dissolution clause and further to address the

arguments as to the effect of incorporation or non-corporation of the

dissolution clause in the trust deed. We, therefore, restore the issue to the

file of CIT(E) to decide it afresh. The Ld. CIT(E) will take into

consideration the charitable activities, if any, carried out by the assessee

till date and will also consider the other relevant submissions and will pass

an order regarding the entitlement of the assessee for grant of registration

u/s 12A of the Act, in accordance with law. It is directed that the assessee

will present itself before the CIT(E), as and when called for, and furnish

the necessary evidences and will not contribute in delaying the disposal of

the case. The Ld. CIT(E) will decide the application of the assessee within

three months from the date of receipt of the copy of this order.

of the parties have submitted that this appeal be also restored to the file of

the CIT(E) as this case can be adjudicated upon after decision of the

CIT(E) on the application for registration u/s 12A of the Act. Accordingly,

ITA Nos. 812 & 823/Chd/2016 Global Hands for Rural Development, Kangra 4

this appeal is also restored to the file of the Ld. CIT(E) for decision afresh

in accordance with law, to be adjudicated after the decision on the

application of the assessee for registration u/s 12A of the Act.

for statistical purposes.

Order pronounced in the Open Court on 26.03.2018.

Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 26. 03.2018 Rkk Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR