Kuldip Singh ORDER
O.P. Kant, Member (A)
1. This appeal by the assessee is directed against order dated 27/02/2018 passed by the Ld. Commissioner of Income-Tax(Exemption), Delhi [in short the Ld. CIT(E)] rejecting the application of the assessee for registration under section 12AA of the Income Tax act, 1961 (in short the Act). The grounds raised by the assessee are reproduced as under:
1. That the CIT(E) has erred in law in not granted registration u/s. 12A of the Income Tax Act 1961, to the Appellant.
2. The CIT(E) has not considered that the activities of the Appellant are charitable in nature and conducted to support the activities of International Center For Research On Women which is the its self a section 25 company under companies act 1956 and engaged in charitable activities and has been granted registration u/s. 12A of the Act.
3. The Appellant craves leaves to add, alter or modify the aforesaid ground and craves leaves to file additional grounds.
2. Briefly stated facts of the case are that M/s. International Centre for research on Women Ltd. ('ICRW') is a non-profit organisation with the object of promoting social and economic development with women's full participation and is incorporated as a limited company under section 25 of the Companies Act, 1956. The said company is registered for the purpose of section 12AA and section 80G of the Act. The provisions of Payment of Gratuity Act, 1972 are applicable in the case of 'ICRW' and therefore to protect the financial interest of its employees, the 'ICRW' setup this trust namely 'ICRW Group Gratuity Trust' i.e. the assessee. This trust applied for online application on 23/08/2017 in form No. 10A before the Ld. CIT(E) for seeking registration under section 12AA of the Act. The assessee filed trust deed and another documents as desired by the Ld. CIT(E). After examination of objects of the trust, the Ld. CIT(E) observed that trust's aims and objectives is only for the worker/employee of the 'ICRW' and does not appear to be for general charitable purpose. The Ld. CIT(E) accordingly rejected the application of the registration under section 12AA of the Act.
3. Before us, the Ld. Counsel of the assessee submitted that
(i) the ICRW is a non-profit organisation and already registered under section 12A and 80G of the Act.
(ii) The assessee trust has been formed for benefit of it's employees. The amount of gratuity will be set aside by the 'ICRW' for the payment of the gratuity to the employees of the 'ICRW' and the interest received on the said amount shall also be payable to the said employees. There will be no income besides interest in the assessee trust.
(iii) Relied on the decision of Hon'ble Supreme Court in the case of the Ahmedabad Rana Caste Association MANU/SC/0223/1971 : (1971) 82 ITR 704 (SC) wherein it is held that to serve a charitable purpose, it is not necessary that object should be to benefit the whole of the mankind or all persons in a particular country or state and it is sufficient if the intention to benefit section of the public as distinguished from a specified individual is present.
(iv) Also relied on the decision of Hon'ble Gujarat High Court in the case of Hiralal Bhagwati vs. CIT MANU/GJ/0046/2000 : (2000) 246 IT........