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15.06.2018 - Voice of CA presents - Latest Updates
Friday, June 15, 2018

  I. Headlines Today:   

  1. Anti-profiteering body in talks with FMCG firms over GST rate cut benefits  (Click for detail)
  2. Multi Vehicle Option for e-Way bill  (Click for detail)
  3. CBDT proposed to seek more info while filing appeal before ITAT  (Click for detail)
  4. Sebi norms offer relief to stressed cos under IBC  (Click for detail)
  5. GST payers can approach jurisdictional tax officer to change username, password  (Click for detail)
  6. ‘280' notified as Cost Inflation Index for FY 2018-19  (Click for detail)
  7. CG issues 8.40% GOI (National Small Savings Fund) (Non-transferable) Special Securities, 2017 and 2028  (Click for detail)
  8. Govt directs all unlisted companies to dematerialise shares by September  (Click for detail)
  9. Sector under scrutiny, Big 4 ease revenue targets for audit partners  (Click for detail)
  10. 10 documents you need to file your income tax return  (Click for detail)
  11. All members having certificate of practice, please click here to submit important information to ICAI - Last date for online submission is 30th June 2018  (Click for detail)

II. A Useful Presentation:

1.  Changes in ITR Forms for A.Y. 2018-19
(Please click here)

(Contribution by CA. Sanjay K. Agarwal, Founder - Voice of CA; and contributor is available at Email-id: )

  III. Direct Taxes Case Law: 

1.  ACE Vision Educational & Charitable Trust Vs. CIT(Exemption), I.T.A. No. 827/CHD/2016, Date of Pronouncement: 08.06.2018, ITAT - Chandigarh

Issue: Whether rejecting the registration application u/s 12AA merely on account of extraordinary powers with the managing trustee to appoint or remove other trustees and also to nominate their successor is appropriate?

Held: No

Facts: The assessee trust filed an application for registration u/s 12AA of the Act. It was submitted that the object of the assessee trust was to provide education, medical and other facilities to the public at large on a non-profit basis. The assessee had started a school. The Ld. CIT(E) examined the trust deed and found that the composition of the trust was restricted to the husband and wife who were permanent trustees. They had an unhindered power in respect of appointing and removal of other trustees. Even the applicant had not cited a solitary example in respect of subsidized education being imparted to the needy or even adhered to norms under Right to Education Act. And, finally concluded that the arrangement of the composition of the society had been kept in such a manner that two trustees were empowered to control the entire working and it was difficult to preclude the possibility of large scale activities that did not ensure to the benefit of general public and therefore, rejected the application. Being aggrieved, the assessee is in appeal before the Hon’ble Tribunal.

Held: The Hon’ble Tribunal discussed the Circular No. 14/2016 issued by CBDT which clarified that there is no provision under the Act which called for denial of exemption u/s 10(23C) merely on account of extraordinary powers with the managing trustee to appoint or remove other trustees. It is an admitted fact that the assessee trust is running school which falls within the purview of scope of education which has been declared as charitable purpose as per provisions of section 2(15) of the Act. Therefore, CIT(E) is directed to grant registration to the society.
The appeal is allowed in favour of the assessee and against the revenue.

Cases referred:
•    PIMS Medical & Educational Charitable Society vs. CIT, [2013] 31 Taxman 371 (ITAT- Chandigarh)
•    Baba Amarnath Educational Society vs. CIT [2012] 18 Taxman 222 (ITAT- Chandigarh)
•    M. R. Educational Trust vs. CIT, ITA No. 861/Chd/ 2014, date of pronouncement: 23.05.2016

(Please click here for judgment)

Golden Rules:

  "A normal person prays, don't give me problems.
But a great person prays give me power to face problems" 


Thanks & Regards


Voice of CA 

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