Case Law Details
ICRW Group Gratuity Trust Vs CIT (Exemptions) (ITAT Delhi)
ITAT Delhi held that registration u/s 12AA to trust created for managing the statutory obligations of employees of the parent trust is granted as the same falls within the ambit of advancement of general public utility and, hence, to be considered as a charitable activity as defined u/s 2(15) of the Act.
Facts- The present appeals filed by two assessees is filed against the order of the Commissioner of Income Tax (Exceptions) [CIT(E)] rejecting the application for registration u/s. 12AA of the Income-tax Act.
M/s. International Centre for Research on Women (ICRW) is a non-profit organization established with the objective of promoting social and economic development with women’s full participation and is incorporated as a company registered u/s 25 of the Companies Act, 1956. This new trust applied in online seeking registration u/s 12AA of the Act in the prescribed form No.10A before the ld.CIT(E) ON 23.08.2017. The assessee filed trust deed and other documents as required by the ld.CIT(E). After examination of the same, the ld.CIT(E) observed that the trust’s aims and objectives were only for the workers/employees of the ICRW and did not appear to be for general charitable purposes and, accordingly, rejected the application seeking registration u/s 12AA of the Act vide order dated 27.02.2018. Aggrieved by such rejection, the assessee preferred an appeal before this Tribunal.
Conclusion- Held that any trust that has been created for the purpose of managing the statutory obligations of employees of the parent trust would certainly fall within the ambit of advancement of general public utility and, hence, to be considered as a charitable activity as defined u/s 2(15) of the Act. In view of the aforesaid observations, we direct the ld.CIT(E) to grant registration u/s 12AA of the Act to the assessee trust. Accordingly, the grounds raised by the assessee are allowed.
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