Itta/602/2013 Of The Director Of Income-Tax (Exemptions) v. Abid Road Khan Charitable And Educational Trust

IN THE HIGH COURT OF JUDICATURE, ANDHRAPRADESH AT HYDERABAD TUESDAY, THE SEVENTEENTH DAY OFDECEMBERTWO THOUSAND AND THIRTEEN PRESENT THE HON’BLE THE CHIEF JUSTICESRI KALYAN JYOTI SEN GUPTA AND THE HON'BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.602 OF 2013 Between: The Director of Income Tax (Exemptions),Hyderabad. ..... Appellant AND Abid Rasool Khan Charitable & Educational Trust,Plot NO.91, Road No.12, Banjara Hills,Hyderabad-34 .....Respondent The Court made the following : JUDGMENT:(per the Hon’ble the Chief Justice Sri K.J. Sengupta) This appeal is sought to be preferred against thejudgment and order of the learned Tribunal dated 28.06.2013 in relation to the assessment year 2012-2013 on the following suggested questions of law: 1.Whether on facts and circumstances of the case, theTribunal is correct in law in holding that the DIT (E)cannot deny granting of registration under Sec.12AA ofthe Income Tax Act, 1961 to the assessee TrustTribunal is correct in law in holding that the DIT (E)cannot deny granting of registration under Sec.12AA ofthe Income Tax Act, 1961 to the assessee Trust 2.Whether on the facts and circumstances of the case,the Tribunal is correct in law in directing the DIT(E) togrant registration under Sec.12AA of the Income TaxAct, 1961?the Tribunal is correct in law in directing the DIT(E) togrant registration under Sec.12AA of the Income TaxAct, 1961? We have heard Mr. J.V. Prasad, learned counsel forthe appellant and gone through the impugned judgmentand order of the Tribunal. It appears from the record thatthe assessee - Trust had filed an application in Form 10Aseeking registration under Sec.12A of the Income TaxAct, 1961 and this prayer for registration has been refusedby the Director of Income Tax (Exemptions). As againstthat order, appeal was preferred before the learnedTribunal. The learned Tribunal after examining the TrustDeed found that the assessee - Trust was established forcharitable purposes. The requirement for granting registration has beenmentioned in Section 12AA of the Income Tax Act. Thelearned Tribunal, in our view, has correctly analysed theprocedure for granting registration. The requirements ofSec. 12AA of the Income Tax Act read with Rule 17A ofthe Income Tax Rules are whether the application hasbeen made in the form under the aforesaid provision of Sec.12AA of the Income Tax Act, whether the objects ofthe Trust are charitable in nature and whether theactivities of the Trust are genuine. Once the aforesaidrequirements are satisfied, nothing is required to beconsidered for granting registration. Learned Tribunal inour view has correctly applied the provision of law.Whether income is derived from non-charitable activitiesby the assessee – Trust is a factor, which is not relevantto consider the application. It may be a factor later on. Under the circumstances, we do not find any merit inthis appeal and accordingly dismiss the same. No orderas to costs. As a sequel to the dismissal of the appeal, all thepending interim applications shall stand closed. ______________________ Kalyan Jyoti Sengupta, CJ. December 17, 2013MAS ______________ Sanjay Kumar, J.