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TMI Blog2012 (9) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... ned and developed which not only gives fresh air but invites the people at large to come, enjoy and spend time in the company of fresh grass, flowers, and gives a breath of fresh air, would certainly fall within the words, "preservation of environment", because if the assessee trust had not come forward to maintain it, it may have been used by other nefarious and unhealthy elements, which would otherwise, make the environment unhealthy. No doubt, the specific clauses have been struck out by the Charity Commissioner, under the Trust Act, but still the object would fall in the ambit of clause (8) mentioning about the benefit of the locality residents and the environment - assessee trust must be granted the registration u/s 12AA - in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cieties. The A.R. also submitted that the objects of the trust squarely falls within the amendment brought in, in the Income Tax Act, section 2(15) wherein the words, "preservation of environment " had been added, which brings in the objects within the amendment. The A.R. also submitted that the basic purpose of the trust was to maintain good and fresh environment. The AR placed reliance on the case of CIT v. Breach Candy Swimming Bath Trust [1955] 27 ITR 279 (Bom), wherein, it was held, "Under the Act 'charitable purposes' is defined, and the definition is an inclusive definition, as 'relief to the poor, education, medical relief and the advancement of any other object of general public utility' and the view taken has been that the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the Society as for commercial purposes and to gain personal profit. However, Tribunal took into considerations the requirements of registration under s. 12AA and found that the said requirements were fulfilled by the society and accordingly issued direction. Held: Tests for Registration which have to be applied are - (1) whether the activities of the society are genuine, and (2) whether the purpose of the society is charitable. Tribunal having come to the conclusion that the assessee had satisfied the registration under s. 12AA, no interference is called for with its order directing CIT to grant registration". The AR, therefore, pleaded that since the assessee trust was only doing service to the general public at large and there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied by the assessee, the allowance of registration can be considered. 8. On examination of the trust deed, we find that the object pertaining to the maintenance of the park has been struck down by the Charity Commissioner and since the specific clause has been struck, it has to be presumed that it was never in existence, however clause (8), though general in nature does talk about the benefit of the locality residents and the environment. We have to take into consideration the benefit of locality residents and environment, which has also been brought into the definition of charitable purpose vide the amendment in section 2(15). 9. We find that Hon'ble Allahabad High Court in the case of Fifth Generation Education Society v. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of fresh grass, flowers, and gives a breath of fresh air, would certainly fall within the words, "preservation of environment", because if the assessee trust had not come forward to maintain it, it may have been used by other nefarious and unhealthy elements, which would otherwise, make the environment unhealthy. 14. No doubt, the specific clauses have been struck out by the Charity Commissioner, under the Trust Act, but we still feel that the object would fall in the ambit of clause (8). We also hold that the Bombay High Court in the case of Breach Candy Swimming Bath Trust ( supra ) and the case of Hon'ble High Court as mentioned in earlier paras, support our view. 15. We, therefore, hold that the appellant assessee trust mu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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