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TMI Blog2019 (7) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... s in para not 7(i) and 7(ii). Objection with regard to the name of the trust whereby CIT(A) has held that from the very name of the trust, it appears to be family trust pursuing religious activities of a private nature. This observation is against the aims and objects of the assessee trust. In our considered view, the aims and objects cannot be determined on the basis of name of the trust, until and unless there must be some restrictions, in ensuing the aims and objects and trust's activities are of private in nature which we realized from activities and the aims and objects of the assessee trust do not appears so, as held by the Ld. CIT(A), hence, the said ground of rejection is also not sustainable. Absence of dissolution clause in the trust deed , our attention was drawn by Assessee to the Memorandum of Association and Rules and Regulation of Trust, wherein so from the clause No.45 of the trust deed, the dissolution clause is exists hence the instant ground of rejection is also not sustainable. CIT(E) in the concluding part of its order also observed that no evidence has been adduced in favour of the entity existing for the benefit of the general public. From the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to substantiate its claim therefore, in view of the dictum of Apex Court in NTPC Ltd. vs. CIT, 229 ITR 383 (SC), the additional grounds are admitted. 5. The brief facts of the case are that the assessee trust vide application dated 30.01.2017 filed before the Ld. CIT(E), Chandigarh sought registration u/s 12A of the Income Tax, 1961. The application of the assessee was taken into consideration by the Ld. CIT(E) and the opportunity of being heard was given to the Assessee/Trust by fixing the case on 13.06.2017 and thereafter vide show cause notice 03.07.2017 sought certain clarifications/ documents as mentioned in para 5 of the impugned order. 5.1 In response to the said show cause notice, the assessee vide reply dated 30.06.2017 submitted the documents demanded and also answered the query raised by the Ld. CIT(E). The Ld. CIT(E) after perusal of the reply of the assessee trust, rejected the application of the assesee trust. For the sake of brevity and ready reference the concluding part of the order is reproduced herein below. 6. No one attended on the date fixed. However a reply d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been utilized for the construction of temple treating the same as corpus fund. The activities of the applicant trust do not enure to be charitable in nature and by the very name Jain Kasur Parivar Trust itself it appears to be a family trust pursuing religious activities of a private nature. 8. Notwithstanding the above, the papers submitted were examined. It is observed from the copy of Trust Deed that it does not include dissolution clause. The provisions of section 13(l)(c) of the IT Act states that in case of a trust/ society for charitable or religious purposes or a charitable or religious institution, any income thereof ( i) If such trust or institution Iras been created or established after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or ( i i) If any part of income or any property of the trust or the institution (whenever created or established) is during the previous used or applied, directly or indirectly for the benefit of any person referred to in sub-section (3): In the absence of the Diss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. (iv) Trust deed does not include the dissolution clause. 7.1 Our attention was drawn to the aims and objects of the trust wherein xiii aims and objects have been included in the trust deed. In the order, it is observed by the Ld. CIT(E) that the assessee trust has been formed for the purposes of religious activities i.e., Dhian, Sadhana, Prayer, Bhajan Sandhya and Preachings and at present temple has been constructed. Further as claimed by the assessee, the funds have been utilized for construction of Aradhana Bhawan/Prayer center cum temple for the use of public for prayer, pravachan, bhajan kirtan and discussion of spiritual and religious subjects, which goes to show that the assessee is carrying out certain activities which can be termed as religious activities but in our considered opinion can also be construed as a charitable activities. As there is no bar in granting a registration u/s 12AA of the Act to the Application trust for religious purposes, therefore, we are not in agreement with the observations of the impugned order as mentioned by us in para not 7(i) and 7(ii). 7.2 Now co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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