2013 (12) TMI 475

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..... tered documents both dated 17-03-2009. The Commissioner of Income-tax rejected the applications of the taxpayers on the ground that propagation of Christian belief is hit by section 13(1)(b) of the Act; therefore, registration cannot be granted. Referring to the object of the trusts, the ld.representative for the taxpayers submitted that the object of the trusts is relief to the poor, education, medical relief, propagation of Christian belief, gospel work without distinction of caste or creed. According to the ld.representative, propagation of Christian belief is one of the objects of the trusts and it is not the sole object of the trusts. Propagation of Christian belief is to be undertaken by the trusts in addition to the relief to the poo .....

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..... a particular religious community or caste may not be eligible for exemptions u/s 11 & 12 of the Act. In the case before us, the object of the trust is relief to the poor, education, medical relief, propagation of Christian belief and gospel work. The object does not restrict the activity to any particular caste or religion. In addition to relief to the poor, education and medical relief the object provides for propagation of Christian belief. This Tribunal is of the considered opinion that this clause contained in the Memorandum does not restrict its activity to any particular caste or religion. Therefore, the Commissioner of Income-tax may not be correct to say that the object of the trust is restricted to a particular religion. However, a .....

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..... ject of the institution should be ascertained with reference to the source of funds and the application of the same. If under cover of promoting interests of non-resident Keralites, the appellant is engaged in collection of charges from them and making a profit, then certainly it is a profitable organization, no matter that no dividend is declared by virtue of registration granted under section 25 of the Companies Act. If funds are expended for unnecessary travel and extravaganza, then the same will reflect upon the true purpose of the organization. The question of limitation raised by the appellant is neither tenable nor would advance the case of the appellant because in the first round, the Tribunal did not accept the limitation, but set .....

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