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TMI Blog2014 (1) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... ense. It was, therefore, evident that the assessee society has incurred expenses mainly on organizing Shree Maharaja Agrasen Jayanti etc. and other expenses incurred by it are not related to any charitable activity - No documentary evidence in support of activities of general public utility was furnished by the assessee society - It can be inferred that the assessee has no intention to carry out any activity for general public and its objects are merely on paper - It could be inferred that even though the assessee has taken certain other objects in its memorandum of association, but the same have never been acted upon or brought into existence to take care of general public - The ld. CIT was, justified in holding that none of the expenses incurred by the assessee are related to any charitable activity - The ld. CIT, found that no charitable activities for general public utility have been carried out by the assessee society - Decided against assessee. - ITA No. 317/Agra/2013 - - - Dated:- 31-10-2013 - BHAVNESH SAINI AND PRAMOD KUMAR, JJ. For the Appellant : M.M. Agarwal. For the Respondent : Anirudh Kumar. ORDER:- PER : Bhavnesh Saini This appeal by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is in appeal, challenging the order of the ld. CIT in rejecting the registration application u/s. 12AA of the IT Act. The assessee claimed that the impugned order has been passed without giving proper opportunity and that the ld. CIT has not appreciated that institution was already running Dharamashala known as Maharaja Agrasen Atithi Bhawan since very long and was also in process of establishing another Dharamashala known as 'Agra Vatica' and such facilities were not restricted to any caste, community or creed. 4. We have heard the ld. representatives of both the parties, perused the finding in the impugned order and considered the material available on record. 5. Section 12AA of the IT Act provides procedure for grant of registration and the ld. CIT shall have to satisfy himself about the objects of the trust or institution and the genuineness of its activities before granting or refusing to grant registration under the above provisions. Thus, the objects of the assessee and genuineness of its activities shall have to be considered in the light of the material produced on record. Section 11 of the IT Act provides for exemption to the trust or institution registered und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order, would have benefited the cause of general public. Thus, substantially, the objects of the assessee are meant for particular community only and rest of the objects have not been carried out by the assessee since its inception in the year 1991. The assessee applied for registration in January, 2013 despite it was in existence since January, 1991. As such, the assessee has no intention to carry out any activity for general public and its objects are merely on paper. Therefore, it could be inferred that even though the assessee has taken certain other objects in its memorandum of association, but the same have never been acted upon or brought into existence to take care of general public. The ld. CIT was, therefore, justified in holding that none of the expenses incurred by the assessee are related to any charitable activity. The ld. CIT is also justified in holding that none of the expenses have been incurred towards achieving the objects of the assessee society. It is also admitted fact that no documentary evidences were furnished either before the ld. CIT or before us in respect of the activities of general public utility. The ld. CIT also specifically noted in the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de Dharamshala for the stay of pilgrims who, as admitted by the learned counsel for the appellant need not necessarily be from Dhakad community. It has further observed that merely because Dharamshala has been constructed in a religious place namely, Ujjain, it cannot be said that it is for charitable or religious purposes. 8. In our considered view, since s. 11 of the Act provides for exemptions to the trust registered under the Act, it is primarily the purpose of s. 11 that will dominate or prevail over other consideration. Sec. 11 provides for this exemption only if the property held is for charitable or religious purposes. It is only when such a purpose is shown that registration can be granted. It is in this context that in the case of trust for charitable purposes or charitable institution created or established after the commencement of the Act, the income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste, shall be excluded. Reference to the religious community or caste will have to be read ejusdem generis with the purposes for which the exemption is to be granted under s. 11 which is charitabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention of the ld. counsel for the assessee could not be accepted to grant registration for running or creating Dharamshala by the assessee society. 7. The ld. counsel for the assessee relied upon the decision of ITAT, Delhi Bench in the case of Agarwal Mitra Mandal Trust v. DIT (Exemption) [2007] 106 ITD 531 in which the objects and genuineness of the activities of the assessee trust being charitable was not doubted. Therefore, it was held that the powers of DIT (Exemption) u/s. 12AA are limited to make enquiries with a view only to satisfy himself about the genuineness of the activities and objects of the trust. Application u/s. 13 falls within exclusive domain of the AO and registration cannot be refused on the ground of violation of provisions of section 13(1)(b). On the similar proposition, he has relied upon the decision of ITAT Delhi Bench in the case of Shri Krishna Education Welfare Trust v. CIT [2009] 27 SOT 331 and order of ITAT Jaipur Bench in the case of Bhagwan Mahavir Purusharth Prerna Nidhi Nyas v. CIT [2012]144 TTJ 379. He has also relied upon the judgment of Hon'ble Rajasthan High Court in the case of CIT v. Paramhans Ashram Trust [1993] 203 ITR 711 in which t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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