2009 (3) TMI 1083 - AT - Income Tax

Summary

Issues involved: Appeal against refusal of registration u/s.12AA of the I.T. Act, 1961 due to admixture of religious and non-religious objects in the trust.

Summary:
1. The appellant, a trust, sought registration u/s.12AA with objects including religious and charitable activities. Respondent denied registration citing admixture of religious and non-religious objects.
2. Appellant argued that there is no prohibition for a trust to have both religious and charitable objects for exemption u/s.11. Various case laws supported this claim.
3. Respondent contended that satisfaction of charitable or religious objects is a condition precedent for registration u/s.12AA. Definition of charitable purpose u/s.2(15) was highlighted.
4. Tribunal found the objects other than the disputed clauses to be charitable. Trusts with both religious and charitable objects are entitled to exemption u/s.11 as per relevant case law.
5. Tribunal directed respondent to grant registration u/s.12AA to the appellant.

Conclusion: The appeal was allowed, and registration u/s.12AA of the Act was directed to be granted to the appellant trust.