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TMI Blog2017 (2) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust, prima facie, appears to be of charitable in nature. Further, we are of the view that in order to ascertain the true nature and purpose of the Trust, the objectives are to be considered as a whole and not in isolation. Another aspect of issue is the introduction of first proviso of sec (15) holding that activities of the trust was commercial in nature. In this connection, we find that the Amritsar Bench of Tribunal in the case Kapurthala Improvement Trust vs. CIT, Jalandhar [2015 (7) TMI 77 - ITAT AMRITSAR] has held that first proviso to section 2(15) have no role in matters relating to registration of a trust or institution under section 12A or 12AA for granting or declining registration or in respect of cancellation of registration. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee, CIT inter alia concluded that assessee Trust was not following any charitable activities and hence cannot be termed as a Charitable Organization and for reaching the aforesaid conclusion he inter-alia noted that the News letter titled SIMA which was published by assessee was a News letter meant for the Members only and did not reach out to general public. He also noted that only persons possessing medical qualifications and registered with any Medical Council of India could be the Member of the assessee. He also noted that most of the activities of the assessee Trust pertain to and restricted to the Members and for which fee was charged and hence the activities of assessee were not charitable activities for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AR submitted that though the assessee has raised two grounds, but the sole controversy which is to be decided is about the registration of the assessee u/s 12A of the Act. 5. Before us the ld. AR reiterated the submissions made before ld. CIT(A) and further submitted that the assessee Trust was created in 1954 and is carrying out various activities like arranging educational camps among public in the matter of health and sanitation, continued medical education for its Members which in turn help the general public. He further submitted that assessee also undertakes various other activities like computer trainings, sports events, yoga etc. for the general public and in support of the activities carried out by the assessee, he also placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efusing the grant of registration be set aside. 6. Ld.D.R. on the other hand supported the order of ld. CIT and further submitted that for the purpose of registration, the ld. CIT has to be satisfied not only with regard to the genuineness of the Trust but also with regard to the genuineness of the activities of the Trust. He further submitted that the activities of the Trust as stated in the News Letter cannot be considered to be a charitable activity so as to qualify for exemption. He further placed reliance on the decision in the case of Indian Nutritional Medical Association Vs. CIT-1, Kochi reported in (2013) 35 taxmann.com 505, State Forum of Bankers Club (Kerala) Vs. Income Tax Officer (Tech), Kochi (2015) 56 taxmann.com 172 (Coch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents or information and is also empowered to make such inquiries as he may deem necessary in that behalf. The Commissioner is thereupon empowered to pass an order in writing either registering an Institution or if he is not satisfied about the objects of the Trust or Institution and of the genuineness of its activities, to pass an order in writing refusing to register the Trust or Institution. Thus it can be seen that at the time of grant of registration, the Commissioner is not empowered to examine the application of income. The stage for consideration of the relevance of the object of the Trust and the application of its funds arises at the time of assessment. We further find that Hon ble Kerala High Court in the case of Shri Anjaney ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces in their different branches, from time to time. 2) To promote improvement in Public Health and Medical Education; 3) To maintain the honour and dignity of the profession; to uphold its interests and to promote co-operation amongst the members of the profession. 10. On perusing the objectives of the Trust as detailed above, it is seen that the objects of the assessee are inter alia to promote and advance Medical and Allied Sciences in different branches and to promote improvement in Public Health and Medical Education. Thus the objects of the Trust, prima facie, appears to be of charitable in nature. Further, we are of the view that in order to ascertain the true nature and purpose of the Trust, the objectives are to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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