Malik Hasmullah Islamic Educational and Welfare Society v. CIT

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The Tax Publishers2013 TaxPub(DT) 1110 (Luck-Trib) : (2012) 138 ITD 0519 : (2013) 153 TTJ 0635 : (2013) 085 DTR 0302 INCOME TAX ACT, 1961 --Charitable/Religious trust--Registration under section 12AAFor benefit of particular religious community--Assessee-society sought for registration as charitable educational institution under section 12AA. It was registered with principal object to establish schools for Muslim boys and girls for providing Islamic education. Commissioner denied registration on the ground that assessee-society was established for benefit of a particular religious community and, therefore, could not be considered as a charitable institution under sections 11 and 12 as per provision of section 13(1)(d). *Held:* For granting registration under section 12AA, Commissioner was required to satisfy himself about the objects of the trust and genuineness of the activities carried on. Commissioner had nothing to prove that objects of trust were not charitable or the activities were not carried out in pursuance of the objects. Commissioner had invoked provisions of sections 11, 12 & 13 for denial of registration. Such sections are intended for exercise of jurisdiction by AO during assessment proceedings and Commissioner was not competent to invoke the provisions of such sections for declining registration under section 12AA. Therefore, the order of Commissioner was set aside and he was directed to grant registration to assessee-society. Income Tax Act, 1961 Section 13 Income Tax Act, 1961 Section 12AA In The ITAT, Lucknow a Bench S. K. Yadav, J.m. & Mehar Singh, A.m. Malik Hasmullah Islamic Educational and Welfare Society v. CIT IT Appeal No. 735 (Lucknow) of 2011 A.Y. 2012-13 3 July 2012 Appellant by : H. Rahman Respondent by : R. K. Ram ORDER *Mehar Singh, A.M.* This is an appeal filed by the assessee society against the order of Commissioner, dated 24-11-2011, passed under section 12AA of the Act (in short referred to as 'the Act'. The learned Authorised Representative contended before the Bench that the impugned order, passed by learned Commissioner, is contrary to the provisions of section 12A read with section 12AA of the Act. The learned Commissioner merely placed reliance on irrelevant consideration of section 11 to 13, for the purpose of denying registration under section 12AA of the Act. It was, further, highlighted by learned Authorised Representative that the definition of charitable purpose, as contemplated under section 2(15) of the Act, has been completely ignored by the learned Commissioner. Similarly, it was stated that the objects of the assessee appellant are in consonance with the definition of charitable purposes, as provided under section 2(15) of the Act. In view of this, it was prayed that the impugned order passed by learned Commissioner be quashed and Commissioner be directed to grant registration under section 12AA of the Act. 2. Learned Departmental Representative. on the other hand placed reliance, on the order of Commissioner. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1110 (Luck-Trib) : (2012) 138 ITD 0519 : (2013) 153 TTJ 0635 : (2013) 085 DTR 0302

INCOME TAX ACT, 1961

--Charitable/Religious trust--Registration under section 12AAFor benefit of particular religious community--Assessee-society sought for registration as charitable educational institution under section 12AA. It was registered with principal object to establish schools for Muslim boys and girls for providing Islamic education. Commissioner denied registration on the ground that assessee-society was established for benefit of a particular religious community and, therefore, could not be considered as a charitable institution under sections 11 and 12 as per provision of section 13(1)(d). Held: For granting registration under section 12AA, Commissioner was required to satisfy himself about the objects of the trust and genuineness of the activities carried on. Commissioner had nothing to prove that objects of trust were not charitable or the activities were not carried out in pursuance of the objects. Commissioner had invoked provisions of sections 11, 12 & 13 for denial of registration. Such sections are intended for exercise of jurisdiction by AO during assessment proceedings and Commissioner was not competent to invoke the provisions of such sections for declining registration under section 12AA. Therefore, the order of Commissioner was set aside and he was directed to grant registration to assessee-society.

Income Tax Act, 1961 Section 13

Income Tax Act, 1961 Section 12AA

In The ITAT, Lucknow a Bench

S. K. Yadav, J.m. & Mehar Singh, A.m.

Malik Hasmullah Islamic Educational and Welfare Society v. CIT

IT Appeal No. 735 (Lucknow) of 2011

A.Y. 2012-13

3 July 2012

Appellant by : H. Rahman

Respondent by : R. K. Ram

ORDER

Mehar Singh, A.M.

This is an appeal filed by the assessee society against the order of Commissioner, dated 24-11-2011, passed under section 12AA of the Act (in short referred to as 'the Act'. The learned Authorised Representative contended before the Bench that the impugned order, passed by learned Commissioner, is contrary to the provisions of section 12A read with section 12AA of the Act. The learned Commissioner merely placed reliance on irrelevant consideration of section 11 to 13, for the purpose of denying registration under section 12AA of the Act. It was, further, highlighted by learned Authorised Representative that the definition of charitable purpose, as contemplated under section 2(15) of the Act, has been completely ignored by the learned Commissioner. Similarly, it was stated that the objects of the assessee appellant are in consonance with the definition of charitable purposes, as provided under section 2(15) of the Act. In view of this, it was prayed that the impugned order passed by learned Commissioner be quashed and Commissioner be directed to grant registration under section 12AA of the Act.

2. Learned Departmental Representative. on the other hand placed reliance, on the order of Commissioner.