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2016 (9) TMI 1064 - ITAT HYDERABADRegistration u/s.12AA rejected - trust has mixed objects - Held that:- There is no dispute that the assessee has mixed objects thereof charitable as well as religious. But the fact is that the CIT(E) has refused to grant registration because he has analysed only three initial objects of the society and came to the conclusion that the objects are not ascertainable and going further he observed that assessee had received certain donations and met some expenditure, which are purely religious. He observed that this trust is established mainly for promoting a particular religion. In the present case, CIT(E) has not disputed the fact that the trust can have mixed objects. CIT(E) has objected to the objects which are not ascertainable. Otherwise also, the concept of mixed objects are already settled issue, as held in the case of ACIT Vs. Surat Art Silk Cloth Manufacturers Association [1979 (11) TMI 1 - SUPREME Court ] wherein held that if the primary purpose and predominant object of a trust are to promote welfare of the general public, the purpose would be charitable purpose, any other object which might not be charitable, but which is ancillary or incidental to the dominant purpose, would not prevent trust or institution from being a charitable trust. In the given case, no doubt the trust has mixed objects but what is important, can it be distinguishable. Ld. CIT(E) himself observed that the trust has incurred expenditure towards charitable as well as religion. He even distinguished the income as well as relevant expenditure. Coming to the ascertainability of the object, in our view, we have gone through the objects and found that certain institutions formulate their objects in such a fashion that they try to address in global level, then comes down to their main objects. In the given case also, it appears unascertainable but they try to cover overall general objects, which may not look ascertainable. But in our considered view, CIT(E) should have looked at the whole objects and appreciated the overall aspects are charitable purpose in the creation of the trust. As long as it is beneficial to the society, it should be appreciated. With regard to objects of the religious purpose, wherever the objects or activities which are contravening the provisions of section 13(1)(b), the relevant income and expenditure can be eliminated at the stage of assessment, it should not be considered at the stage of granting registration. At this stage, CIT(E) should appreciate the purpose and objects relevant for charitable purpose. Mere presence of certain religious objects should not preclude the officer to doubt the functions of the trust. As explained above, CIT(E) should be considering only the charitable side of the institution and grant the registration. Of course, he chooses or expects the trust will misuse the registration, he is at absolute liberty to grant conditional registration by imposing conditions like, it is eligible to claim the exemption only on charitable activities, separate books to be maintained, both books be subject to audit etc. With the above observations, we remit the issue back to the file of CIT(E) with a direction to grant registration. - Decided in favour of assessee.
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