| The Tax Publishers2019 TaxPub(DT) 3519 (Del-Trib) : (2019) 178 ITD 0032 INCOME TAX ACT, 1961
Sections 12AA, 80G & 2(15)
When aims and objects of assessee were come under charitable activities in terms of section 2(15), then, merely because of the fact that the assessee had established to comply with CSR obligations, registration under section 12AA could not be denied, particularly when CSR activities were also charitable activities, thus, CIT(E) was directed to provide registration under section 12AA to the assessee and also granted approval under section 80G.
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Charitable trust - Registration Approval under section 12AA and 80G - Rejection on ground of non-charitable purpose -
Assessee company filed applications for registration under section 12AA and for approval under section 80G. CIT(E) rejected the applications on the ground that primary aim for forming the assessee under section 8 of Companies Act, 2013, was merely to comply with requirement of Corporate Social Responsibility (CSR) of its parent company. Further that, activities carried out by the assessee did not fall under any limb of charitable activities defined under section 2(15). The assessee's contention was that CSR activities were public charitable activities in terms of section 8 of Companies Act, 2013. Held: Aims and objects of the assessee were to establish and run educational institutions like schools, colleges, apprentice training, practical training classes, vocational training, boarding facilities, NGO, gurukuls, teaching classes, etc., which certainly come under the charitable activities in terms of section 2(15). Merely because of the fact that the assessee had established to comply with the CSR obligations, the registration under section 12AA could not be denied, particularly when CSR activities were also charitable activities. Therefore, the CIT(E) was directed to provide registration under section 12AA to the assessee and also grant approval under section 80G.
Followed:Nanak Chand Jain Charitable Trust v. CIT (Exemptions) (2018) 91 taxmann.com 197 : 169 ITD 534 (Delhi-Trib.) : 2018 TaxPub(DT) 1387 (Del-Trib);CIT v. ILLM Foundation Academy (2016) 75 taxmann.com 214 : 243 Taxman 285 (Punj. & Har.) : 2016 TaxPub(DT) 4214 (P&H-HC).
REFERRED : Process-Cum-Product Development Centre v. Addl. CIT (2019) 103 taxmann.com 191 : 175 ITD 517 (Delhi-Trib.) : 2019 TaxPub(DT) 1879 (Del-Trib); CIT (Exemptions) v. Shri Shirdi Sai Darbar Charitable Trust (Dharamshala) (2017) 81 taxmann.com 49 (P&H) : (2017) 247 Taxman 260 (P&H) : (2017) 395 ITR 567 (Punj. & Har.) : 2017 TaxPub(DT) 1169 (P&H-HC);Director of Income Tax (Exemption) v. Group Vocational Training Centre Trust [IT Appeal No. 199 of 2015, dated 23-2-2016].
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, DELHI 'B' BENCH
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