Charitable Trusts—Procedure for registration—Grant of registration u/s 12AA

VISAKHAPATNAM KAKINADA PETROLEUM vs.COMMISSIONER OF INCOME TAX

VISHAKAPATNAM TRIBUNAL

Charitable Trusts—Procedure for registration—Grant of registration u/s 12AA—Eligibility—Assessee “Visakhapatnam Kakinada Petroleum, Chemical and Petro chemical Investment Region, Special Development Authority (VK PCPIR SDA) created by Government of Andhra Pradesh, u/s 3 of Andhra Pradesh Urban Areas Development Act, 1975 through a GOMS no. 373— Assessee had

filed an application before CIT(A) for grant of registration u/s 12AA—CIT(A) held that assessee institution might not be said to be directly engaged in any trade, commerce or business, but then it could not be denied of having rendered services in connection with business or commerce or trade of entities from whom it collected various charges and fees—CIT(A) concluded that assessee was not eligible for registration u/s 12AA on ground that activity of assessee attracted by proviso to section 2(15)—Held, assessee was not involved in directly rendering any service relating to trade, commerce or business—Activity undertaken by assessee came within object of general public utility and it could not be concluded that it involved carrying on of any activity in nature of trade, commerce or business—Unless activity undertaken by assessee came within ambit of trade, commerce or business, proviso to section 2(15) would not get attracted—Assessee was created by sovereign authority i.e. State of Andhra Pradesh for purpose of development, orderly growth of industries and environmental upgradation by controlling various aspects such as utilization of land, water and pollution relating to Petroleum, Chemical and Petrochemical Industry—Therefore, assessee was entitled for registration u/s 12AA—Order passed by CIT(A) was quashed and registration u/s 12AA was granted to assessee—Assessee’s Appeal allowed