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TMI Blog2015 (10) TMI 2104X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit the whole of mankind or all persons in a particular country or State. It is sufficient if the intention to benefit a section of the public as distinguished from a specified individual is present. Similarly in the case of CIT Vs. Surji Devi Kunji Lal Jaipuria Charitable Trust (1990 (8) TMI 132 - ALLAHABAD High Court) that to make a purpose charitable, it is not necessary that it should be beneficial to the poor only and what is required is benefit to a section of the public as distinguished from specified individuals. Trust created for giving medical aid, social welfare, uplifting of poor members of the community and for giving financial and other help on the occasion of the marriage of the members of this community is for relig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the trust deed only persons belonging to the Agarwal Community/Caste could become members of the Trust. Based on these findings, the trust was refused registration u/s 12AA of the Act. The Ld. CIT(Exemptions) also relied on one judgment of the Hon ble Delhi High Court in the case of Kirti Chandra Tarawati Charitable Society Vs. DIT(Exemption) reported in 232 ITR 11, and two judgments of the Hon ble Kerela High Court in the cases of Self Employers Service Society Vs. CIT reported in 247 ITR 18 (Ker.) and Dawn Educational Charitable Trust Vs. CIT reported in 370 ITR 724 (Ker.) while refusing the grant of registration. 4. In the appeal before us, the Ld. AR of the assessee has submitted that although no activity was carried out duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t measuring 351.30 sq.mtr. in area on 30.07.2013 on which the Dharmshala was proposed to be built. This purchase of land amounting to ₹ 23,02,540/- is also duly reflected in the balance sheet of the assessee trust drawn on 31.03.2014 and is available on page 51 of the paper book. 7. It will also be worthwhile to reproduce section 12AA of the Act at this juncture: 12. AA (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) of sub-section (1)] of section 12A, shall- (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of filing of application for registration there were no substantial activities. The Ld. CIT(Exemptions) drew adverse inference on inactivity which was not germane at the time of filing of application for registration of trust u/s 12AA. In our considered opinion, mere not carrying of vigorous activities of the trust at the time of registration per se cannot be detrimental for registration of the trust u/s 12AA where the objects are charitable. It is seen from the order u/s 12AA of the Act that the CIT(Exemptions) has denied the benefit of registration on the ground that during the year no charitable activities were carried out by the assessee trust. However, no inference about the objects being non-charitable in nature was drawn. Refere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the registration was that the assessee trust catered to a particular community or caste namely Agarwal Community or the followers of Maharaja Agrasen. In our considered opinion, following the ratio of the judgment of the Hon ble Apex Court in Ahmedabad Rana Caste Association Vs. CIT (Supra), the registration u/s 12AA cannot be rightly refused. In this case, the Hon ble Apex Court has held that the object beneficial to a section of the public is an object of general public utility. To serve a charitable purpose it is not necessary that the object should be to benefit the whole of mankind or all persons in a particular country or State. It is sufficient if the intention to benefit a section of the public as distinguished from a specified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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