ICRW was a non-profit organization established with objective of promoting social and economic development with women’s full participation and was incorporated as a company registered under section 25 of Companies Act, 1956. Provisions of Payment of Gratuity Act, 1972 were applicable in case of ICRW and, therefore, to protect financial interest of its employees, ICRW set up a trust, namely, ‘ICRW Group Gratuity Trust’.\u00a0 New trust applied for seeking registration under section 12AA. Commissioner (E) held\u00a0 that assessee was formed only for limited purpose of managing statutory obligations in form of gratuity payable to employees of ICRW and said purpose would not fall within ambit of ‘charitable purpose’ as defined under section 2(15). Accordingly, he dismissed application seeking registration.\u00a0 On appeal the Tribunal held that\u00a0 any trust that had been created for purpose of managing statutory obligations of employees of parent trust would certainly fall within ambit of advancement of general public utility and, hence, its activities was to be considered as a charitable as defined under section 2(15).(AY. 2018-19, 2020-21, 2021-22)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 12AA : Procedure for registration \u2013Trust or institution-Non-profit organization established with objective of promoting social and economic development with women’s full participation-Any trust that had been created for purpose of managing statutory obligations of employees of parent trust would certainly fall within ambit of advancement of general public \u2013 Directed to grant registration. [S. 2(15), Companies Act,1956,S.25,Payment of Gratuity Act,1972 <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41654","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aPQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=41654"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41654\/revisions"}],"predecessor-version":[{"id":45373,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41654\/revisions\/45373"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}