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TMI Blog2011 (3) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... the discretion to grant or not to grant a renewal periodically based on applications were put up for this by the assessee - Sub-sec.(3) of sec.12AA of the Act, it gives power to the Commissioner to withdraw registration given under sec.12AA of the Act if the activities of the institution or trust were not as per its’ objects. Held that: the assessee was eligible for registration under sec.12AA as well as approval under sec. 80G of the Act, and these were unjustly denied without taking the totality of the circumstances and objects of the assessee - Quash the order of the DIT(E) and direct him to grant registration under sec. 12AA and approval sought by the assessee under sec. 80G of the Act - Hence, assessee’s appeals are allowed. - ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were connected to religious activity, and denied it registration sought for under sec. 12AA as well as approval under sec. 80G of the Act. 3. Now before us, ld. AR strongly assailing the order of the DIT(E) called our attention to the object clause of the assessee trust. According to him, its objects numbering from (i) onwards clearly showed that it was purely a charitable trust. On clause number 5(xi) which was considered by ld. DIT(E) as a religious object, ld. counsel submitted that there was a clear restriction therein whereby any application for religious activities was limited to 5% of the total income. Therefore according to him, the registration sought under Section 12AA and approval sought under Sec.80G of the Act were unjustly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh, takeover aid and / or financially assist homes for mentally retarded, destitute women, aged people, orphans etc. vi) To establish and conduct Oriental High Schools, Colleges and other Vidyalayas and Institutions imparting education and research vii) To publish and/or aid in the publication of books, journals, periodicals which promote the fulfillment of the objects of the Trust without in any way earning profit thereon. viii) To celebrate or aid in the celebration of festivals in commemoration of great saints, acharyas, scholars, philosophers by way of aiding and reHeving the indigent, poor, deserving, unemployed or incapacitated poor in distress of any caste or creed in India x) To create endowments and to donate funds towards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the total income. The procedure for seeking approval specified in sub-cl.(vi) of sub-sec. (5) of sec. 80G, is set out in Rule 11AA. Sub-Rule (4) of Rule 11AA clearly states that once the Commissioner is satisfied that all the conditions laid down in clause (i) to (v) of sub-sec.(5) of sec. 80G are fulfilled, he shall grant the approval, and if otherwise, he shall reject application for approval, after recording the reasons for such rejection in writing. So what is required to be seen is whether assessee trust had satisfied the conditions laid down in clauses (i) to (v) of sub-sec.(5) to sec. 80G of the Act. Obviously assessee had satisfied all other requirements of Rule 11AA, since there is no whisper in this regard in the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure; (v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 2510 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority; Clause (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gious community or caste. When the activities are not pertaining to any particular religion, a mere mentioning of a religious activity without specifying any religion would not by itself make the trust a non charitable one. Especially so, since sub-Section (5B) opens with a non-obstante clause. If we look at Explanation 3 to sub-sec.(5C) of sec. 80G of the Act, it clearly says the charitable purpose does not include any purpose the whole or substantially the whole of which is of a religious nature. A reading of the object clause of the assessee trust reproduced above, would not in any way show that its purpose was in whole or substantially in whole, of religious nature. Assessee had by itself put a limitation for spending on religious activ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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