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TMI Blog2014 (5) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case, Ld DIT (E) erred in rejecting the application for registration u/s 12A(a) of the Act, 1961 of the appellant Trust by holding that the objects of the Trust are mixed charitable and commercial, couples with lack of binding legal commitment on trustees regarding application of funds. 2. On the facts and in the circumstances of the case, the Ld DIT (E) failed to appreciate and or overlooked: (a) That the appellant is a Public Charitable Trust registered under the provisions of the Bombay Public Trusts Act, 1950 vide certificate of registration dated 12.9.2011 under PTR No.E-28174 (Mumbai). tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e object clauses and thus erred in by holding that the objects of the Trust are essential commercial and not charitable in nature. (d) That your appellant trust had furnished a copy of Bank statement showing the receipt of donation and amount utilized for giving educational and medical help along with supporting vouchers and receipts which are on record. Your appellant Trust most respectfully submits that the reasons assigned by the Ld DIT (E) that the objects of the appellant Trust are mixed, commercial and charitable are contrary to the facts and law and that the learned DIT (E) should have granted registration u/s 12AA of the Act." 3. Briefly stated relevant facts emanating from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial objects couples with lack of binding legal commitment on trustees regarding application of funds, I am unable to satisfy myself about the genuine charitable character of objects of the trust which is a condition precedent for grant of registration. As the appellant trust has failed to comply with the mandatory requirements prescribed u/s 12AA read with Rule 17A, its application for grant of registration is rejected." 4. Aggrieved with the above, assessee is in appeal before us. 5. During the proceedings before us, Ld Counsel for the assessee brought our attention to the fact that the DIT (E) erroneously came to the conclusion that there is no binding legal commitment of trustees regarding application of the funds only for the obje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; (4) DIT (E) v. Meenakshi Amma Endowment Trust [2013] 354 ITR 210 (Karn) (5) DIT v. Foundation of Ophthalmic and optometry Research Education Centre [2013] 355 ITR 361 (Delhi) (6) C.P. Vidya Niketan Inter College Shikshan Society v. UOI [2013] 359 ITR 322 (7) Mormugaon Port Trust v. CIT [2008] 301 ITR (AT) 380 (Panaji) 6. On the other hand, Ld. DR relied on the order of the DIT (E). 7. We have heard both the parties and perused the order of the DIT (E). On perusal of the relevant record placed before us, we have noticed that the main and generic objects of the Trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; "11. To conclude, we have hitherto discussed the (i) existing provisions relating to the 'charitable purposes'; (ii) analysed the educational object of the assessee in general and the object of conducting of 'tutorial or coaching' as an ancillary or included object of the trust; (iii) judgmental law on the meaning of the expression 'education' and the activities of a conducting the coaching centre/classes etc. It is noted that in the context of the provisions of section 2(15) of the Act, the expression 'education' should be understood as formal education by way of formal school or colleges or universities etc. The 'commercial centres' are not be treated on par with such f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for the purpose of earning profits, imparting knowledge, which is required for getting employment are not covered by the said provisions. Applying the said principles to the facts of the present case, we find that the assessee is yet to commence its activities. As on date, there is neither institution nor any coaching classes conducted by the assessee as stated by the Managing Trustee at Bar. These facts were not properly communicated by the assessee to the DIT (E), probably for this purpose, the assessee wanted an opportunity of being heard by the DIT (E) before the crucial decision was taken against the assessee ie by the rejection of registration u/s 12AA of the Act. Further, we do not have details of financial statements to know t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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