2019 (12) TMI 1181 - AT - Income Tax

Registration u/s 12AA - advancement of any other object of general public utility - Charitable activity u/s 2(15) - activity of providing training in various fields to various persons and the objects also includes preservation of environment, yoga, medical relief and relief of poor. - HELD THAT - On a perusal of various objects mentioned in the trust deed we agree with the contentions of the ld DR that the assessee has included various type of objects in the object clause. Even though the assessee has shown certain photographs which are placed in the paper book, the same will not prove that the assessee is engaged in the educational activities or any other specific activities as claimed by it. No other material was placed before us in order to compel us to interfere with the order passed by ld CIT(E). Under the set of facts we have no other option but to confirm the order passed by ld CIT(E) - Decided against assessee.

Summary

Issues:
Classification of trust under section 12AA of the Act based on objects mentioned in trust deed.

Analysis:
The appeal challenged the order granting registration to the assessee under section 12AA of the Act in the category of 'advancement of any other object of general public utility'. The counsel for the assessee argued that the objects of the trust included providing training in various fields, preservation of environment, yoga, medical relief, and relief of the poor, suggesting categorization as an education trust or trust promoting environmental preservation. On the other hand, the Department argued that the object clause of the assessee was broad, covering various activities, leading to the categorization by the CIT(E) as a charitable trust for the advancement of any other object of general public utility.

Upon reviewing the trust deed and the objects listed therein, the Tribunal found that the trust included a wide range of objectives, such as educating children about nature, promoting organic farming, rural development, traditional agriculture, yoga, Vedic knowledge preservation, and charitable activities. Despite the photographs submitted by the assessee, the Tribunal concluded that there was insufficient evidence to support the claim of engagement in specific activities like education. Consequently, the Tribunal upheld the CIT(E)'s decision to categorize the trust as existing for the advancement of any other object of general public utility.

In light of the diverse objectives outlined in the trust deed and the lack of compelling evidence presented to demonstrate the specific nature of the trust's activities, the Tribunal dismissed the assessee's appeal, affirming the CIT(E)'s order. The decision was pronounced in an open court on 27th November 2019.