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TMI Blog2012 (2) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... r se’ be a commercial activity. possibility of a future contingency with a remote probability will not make the Trust itself a commercial venture - I.T.A. No. 1159/Mds/2011 - - - Dated:- 6-1-2012 - SHRI HARI OM MARATHA, SHRI ABRAHAM P. GEORGE, JJ. Appellant by : Shri Anand Devkumar, CA Respondent by : Shri R.B. Naik, CIT-DR O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : In this appeal filed by the assessee, it assails the denial of registration under Section 12AA of Income-tax Act, 1961 (in short the Act ). 2. Short facts apropos are that assessee had applied for registration under Section 12AA of the Act on 30.12.2009. Ld. DIT(E), pursuant to such application, required the assessee to file certain cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upports a particular religion, it cannot be considered as intended for promotion of any religion. In so far as the issue raised by ld. DIT(E) that assessee could collect fees from apprentices, learned A.R. submitted that such a collection of fees could be done only within the parameters laid down in the object clause and therefore, could not be considered as a reason for concluding that assessee-Trust was a commercial one. 4. Per contra, learned D.R. supported the order of ld. DIT(E) and submitted that assessee was a religious Trust and hence, was not eligible for registration under Section 12AA of the Act. Further, according to him, collection of fees from apprentices converted the assessee into a commercial venture. 5. We have perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the public, state or central government with either as corpus or as cash according to the directions of the donors for the purpose of carrying out the objects of the trust. (o) To do all such lawful acts as may be necessary or incidental and conducive to the attainment of the above objects or any one of them. (p) To undertake such other activities as may be necessary for the promotion of the objects of the trust. (q) To build up centres, afford free education and training in arts, crafts and technical objects to the economically poor and backward people to prepare them for earning their own livelihood. (r) To give funds, Sponsorship and distribution of awards and Ph.d Research and Development. (s) To give awards to musicians. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the object clause. They could do only such activities which were conducive and incidental to the attainment of the objects of the Trust. Collection of fees from apprentices who were studying in the institution or establishment by the Trust could not be per se be a commercial activity. Only when such activity resulted in substantial surplus, which would question the very nature of the charitable existence of the assessee-Trust, could it be considered as a reason for viewing its charitable vows with suspicion. But that in any case is something which has to be seen in future as and when such a contingency happened if it all it happened. In our opinion, ld. DIT(E) read into the clause a future contingent happening which was best left for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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