Director Of Income Tax(Exemption), Kolkata v. She Foundation

O-80 ITA/292/2009 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE DIRECTOR OF INCOME TAX(EXEMPTION), KOLKATA -Versus- SHE FOUNDATION BEFORE :THE HON’BLE JUSTICE T.S. SIVAGNANAMAndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 13[th ]February, 2023 Appearance :Mr. Prithu Dudheria, Adv.…for the appellant. The Court : This appeal filed by the revenue underSection 260A of the Income Tax Act, 1961 (the ‘Act’ forbrevity) is directed against the order dated 30[th] January, 2009passed by the Income Tax Appellate Tribunal, “A” Bench, Kolkata(the Tribunal) in ITA No.2101/Kol/2008 and ITA No.44/Kol/2009.The appeal was admitted on 11[th] April, 2012 on thefollowing substantial question of law: (i)Whether, on the facts and circumstances of thecase, the Income-tax Appellate Tribunal is correct in holding that a trust has to beregistered under Section 12AA and exemptioncertificate granted under section 80G(5)(vi)of the Income-tax Act, 1961 on the basis ofthe recitals in the trust deed though thetrust had not carried out any charitableactivities ? We have heard Mr. Prithu Dudhe, learned standingcounsel for the appellant/revenue. The Director of Income Tax (Exemption) cancelled thecertificate of registration granted under Section 12AA of theAct on the ground that the trust has not carried out charitableactivity. The correctness of the order was tested before thelearned Tribunal which had taken note of the various decisionsof the Hon’ble Supreme Court and, in our view, rightly heldthat while granting registration to the charitable institutionor trust, if it is at the commencement stage, the powers of DITwith whom the application is filed by such trust/institutionare limited to the aspect of examining whether or not theobjects of the trust are charitable nature.The revenue does not dispute the fact that the objectsof the trust are religious and charitable in nature. If suchbe the factual position, the learned Tribunal rightly allowedthe appeal filed by the respondent. For such reason, we find no ground to interfere withthe order passed by the learned Tribunal. Accordingly, theappeal filed by the revenue (ITA/292/2009) is dismissed and thesubstantial question of law is answered against the revenue. (T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) A/s./S.Kumar