Iapl/363/2010 Of Kastoori Devi Foundation 46/13M Kalyani Civil Lines Meerut v. Commissioner Of Income Tax Meerut

Case :- INCOME TAX APPEAL No. - 363 of 2010Appellant :- Kastoori Devi Foundation,46/13m Kalyani Civil Lines,MeerutRespondent :- Commissioner Of Income Tax,MeerutCounsel for Appellant :- Rakesh Ranjan Agrawal,Suyash AgrawalCounsel for Respondent :- Krishna AgarwalHon'ble Bharati Sapru,J.Hon'ble Neeraj Tiwari,J. Heard Sri Suyash Agrawal learned counsel for theappellant assessee and Sri Krishna Agarwal learnedcounsel for the department. This is an appeal of the assessee filed under section260A of the Income Tax Act, 1961 against the order of thetribunal dated 30.6.2010 by which the application madeby the appellant for renewal of exemption under section80G (5)has refused by the tribunal. The questions of lawsought to be answered are as under: "1. Whether on the facts and circumstances of the case, the ITAT was rightin holding that the CIT rightly denied the renewal of exemption undersection 80G of the Act when the appellant satisfied the condition laiddown under section 80G (5) (v) and the registration under section 12A ofthe Act was available to the appellant in the status of charitable trust andthe registration under section 80G was granted and available upto31.3.2009? 2. Whether clauses no.B(3), B(6), B(7) and B (8) having never carried outby the trust and ancillary activities of the trust which the trust may carrycan be a circumstances for denying renewal of registration under section80G of the Act? 3. Whether the appellant trust can be treated as private trust new clause 5(14) of the trust deed during the availability of the registration undersection 12A of the Act? 4. Whether the ITAT is correct not to consider that for granting approvalunder section 80G of the Act the CIT can not act as assessing authority butthe enquiry should be confined to find out with the trust satisfy prescribedcondition laid down under section 80G(v) of the Act?" The admitted facts of the case are that the registration ofthe so-called charitable trust is in existence as grantedunder section 12A of the Income Tax Act. The tribunal has sought to make a distinction between apublic trust and a private trust. There is no dispute withregard to the objects of the trust being of a charitable innature as it is running an educational institution and othercharitable activities associated with it. The doubt arises from the fact that trustees of the trustbelong to an individual family and the trusteeship isevolving only on that family to the exclusion of others andthe public. The utilisation of the money earned by the trust is not veryclear whether it is being expended for the public orwhether it is passing on the family and in his hands. Thematter needs consideration on this point. We therefore remand the matter to the tribunal forrecording a finding as to how profits and the earnings ofthe trust are expended and utilised. He may do so withina period of three months from the date of production ofthe certified copy of this order being placed by theappellant before the tribunal. The questions to be answered after the order passed bythe tribunal in remand. The appeal stands disposed offinally. No costs. Order Date :- 12.3.2018rk