| The Tax Publishers2020 TaxPub(DT) 1094 (Asr-Trib) INCOME TAX ACT, 1961
Section 12A
Merely because bank-account of assessee society was in the name of secretary of Sabha, it could not be said that bank account in the name of individual person, rather it was in the name of office bearer of assessee society. Therefore, rejection of application moved by assessee on the basis that bank accounts was in the name of Secretary and not in the name of society, was against the facts on record. Also, registration with Registrar of Societies is not a pre-condition for granting registration under section 12A. Therefore, merely on this basis that Registrar of Soceities had not informed about change in composition, could not be ground to refuse registrarion under section 12A. Further, trust deed not containing dissolution clause and head of society restricted to be from Shree Dhar Vaush could not be ground to refuse registration when the object of assessee society were charitable in nature and CIT(E) had not doubted activities of assessee for maintenance of Dharamshala and free Hospital, etc.
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Charitable trust - Regisration under section 12A - Refusal on the grounds that bank account was in the name of Secretary of Sabha and not society, no evidence had been filed regarding acceptance of change in composition of society by Registrar of Societies - Trust deed did not contain 'dissolution clause' and head of society restricted to be from Shree Dhar Vansh
Assessee society was an ongoing entity and had been in operation since 20-10-1970. The aims and objects of the society were inter alia to develop the place of Devi Ji to remove curse present at the abode of God; renovation of houses for benefit of travellers and to make efforts to avoid suffering of travellers to make place of Shree Dhar Baba Ji memorable to establish the statute of Shree Dhar Baba Ji at Devi Ji to make an office of Shree Dhar Sabha at Katra and to establish free hospital and Dharamshala at Katra. It applied for registration under section 12A. CIT(E) denied registration on the ground that bank account was in the name of Secretary of Sabha and not society. Also, no evidence had been filed regarding acceptance of change in composition of society by Registrar of Societies. Further, Trust deed did not contain 'dissolution clause' and head of society was resticted to be from Shree dhar Vansh and no other member of the Sabha would have any right to raise any objection.Held: Merely because bank-account of assessee society was in the name of secretary of Sabha, it could not be said that bank accounts in the name of individual person rather it was in the name of office bearer of assessee-society. Therefore, rejection of application moved by assessee on the basis that bank accounts was in the name of Secretary and not in the name of society, was against the facts on record. Also, registration with Registrar of Societies is not a precondition for granting registration under section 12A. Therefore, merely on this basis that Registrar of societies had not informed about change in composition, could not be a ground to refuse registration under section 12A. Further, trust deed not containing dissolution clause and head of soceity restricted to be from Shree Dhar Vansh could not be ground to refuse registration when the object of assessee society were charitable in nature and CIT(E) had not doubted activities of assessee for maintenance of Dharamshala and free hospitals etc.
Relied:CIT (E) Chandigarh v. Shri Mahavir Jain Society, Ludhiana in ITA No. 231 of 2016 Order, dated 11-9-2017, CIT v. R.M.S. Trust reported at (2010) 326 ITR 310 (Mad) : 2010 TaxPub(DT) 1195 (Mad-HC), Tara Educational and Charitable Trust v. DIT(E), Piramal Chambers, Mumbai in ITA No. 1247/Mum/2013 for the assessment year 2012-13 vide Order, dated 18-7-2014, CIT v. Paramhans Ashram Trust reported at (2009) 315 ITR 220 (Raj) : 2009 TaxPub(DT) 1463 (Raj-HC) and Smt. Ganesh Devi Rami Devi Charity Trust v. CIT reported at (1969) 71 ITR 696 (Cal) : 1969 TaxPub(DT) 102 (Cal-HC).
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