2013 (1) TMI 1016 - AT - Income Tax

Summary

Issues involved: Appeal against the order of Director of Income Tax (Exemptions) registering the assessee Trust u/s 12AA of the I.T. Act as Public Religious Trust.

Summary:
The assessee Trust, formed as a Public Charitable Trust, applied for registration u/s 12AA of the Act. The Director of Income Tax (Exemptions) initially rejected the application citing one object clause promoting God consciousness. The Tribunal directed registration based on the decision of the Jurisdictional High Court. The Tribunal clarified that the law does not disqualify trusts with religious purposes from applying for registration u/s 12AA. The Director of Income Tax (Exemptions) subsequently granted registration as a Public Religious Trust. The assessee contended that the Tribunal had directed registration only as a Public Charitable Trust, not a Religious Trust. The Tribunal, following the High Court decision, directed the modification of the registration to Public Charitable Trust, as originally intended.

In conclusion, the appeal of the assessee was allowed, and the Director of Income Tax (Exemptions) was directed to modify the registration to grant status as a Public Charitable Trust.