2011 (6) TMI 763 - AT - Income Tax

Summary

Issues involved:
The rejection of applications for registration u/s 12AA and approval u/s 80G by the Director of Income-tax (Exemptions) based on the commercial nature of printing and publishing activities and the permissibility of amending the trust deed.

Printing and Publishing Activities:
The Director of Income-tax (Exemptions) rejected the applications citing the printing and publishing of newspapers as commercial and not charitable activities. However, the Appellate Tribunal found that such activities can be charitable if they serve a public cause like dissemination of knowledge for societal betterment. The Tribunal emphasized that the nature of publishing activities can be either commercial or charitable based on the specific circumstances of each case.

Amendment of Trust Deed:
The Director's decision to reject the applications due to an amendment in the trust deed was questioned by the Tribunal. It was clarified that trustees can amend the trust deed to enhance trust operations as long as the founders are alive. The Tribunal noted that only in cases where the founders are deceased would a Civil Court intervention be necessary for trust deed amendments.

Conclusion:
The Tribunal concluded that the Director of Income-tax (Exemptions) was unjustified in rejecting the applications for registration u/s 12AA and approval u/s 80G. Therefore, the Director was directed to grant registration to the assessee-trust under sec.12AA and approval under sec.80G. As a result, the appeals filed by the assessee were allowed.