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TMI Blog2019 (8) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... e Madras High Court in the case of United Christmas Celebrations Committee Charitable Trust Vs. ITO [ 2017 (3) TMI 1519 - MADRAS HIGH COURT ] Hosanna Ministries Vs. ITO [ 2017 (3) TMI 1387 - MADRAS HIGH COURT ]. We are of the view that the delay in filling the appeal is not deliberate or wanton, but due to bona fide circumstances set out above. We therefore condone the delay in filing the appeals. Registration u/s.12AA refused - author is property developer and trust deed also have clauses that Trustees had powers to sell and convert trust funds into any other property - HELD THAT:- None of the reasons given for refusing registration to the Assessee are acceptable. The objects of the Assessee are charitable in nature being solely for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income for charitable purposes, but does not have registration u/s 12A, such trust or charitable organization cannot claim the benefit of Sec.11 12. Thus, this appeal by the assessee is allowed. - Shri N.V. Vasudevan, Judicial Member And Shri G. Manjunatha, Accountant Member For the Appellant : Shri S. Venkatram, CA For the Respondent : Shri C. Sundara Rao, CIT(DR) ORDER PER N.V. VASUDEVAN, JUDICIAL MEMBER ITA No.110/Bang/2019 ITA No.111/Bang2019 are two appeals by the Assessee against two orders both dated 28.9.2018 of CIT(Exemptions), Bangalore refusing approval u/s.80G(5)(vi) of the Income Tax Act, 1961 (Act) and registration u/s.12AA(1)(b)(ii) of the Act respectively. 2. There is a delay of about 52 days in filing both these appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessee against refusal of registration u/s.12AA of the Act. 5. The assessee is a Trust which came into existence pursuant to a registered Deed of Trust dated 21.2.2018 executed by M/s. Embassy Property Developments Private Limited. The main objects for which the Trust was created for the purpose of advancement of educational objects or purposes. Clause 2(b) of the Trust Deed provides that the Trustees at their discretion use the fund wholly or in part or parts on such public educational purposes including spiritual activities which are beyond any specific religion, research in human consciousness, well being and education of mentally retarded children adults, research in collective and community living in harmony, unity and peace and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviding education. The CIT(E), in our view, has overlooked the fact that all activities spring from and are to be read in conjunction with clause 2 (b) of the Deed of Trust, which we have extracted in the earlier part of this order. 8. Another reason given by the CIT(E) for rejecting application of the Assessee for grant of registration u/s.12A of the Act was that clause 3 (v) of the trust deed permitted the Assessee to establish, promote any industrial and commercial activity with a condition that the proceeds from such activities should be utilized for supporting educational activities. According to the CIT(E), the above clause showed that the objects of the Assessee were not charitable within the meaning of Sec.2(15) of the Act. The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient safeguards in the Act in the event of the object not being carried out in accordance with the deed of trust or wherever there is personal benefit. There is nothing brought on record by the CIT(E) to show the objects of the Assessee are not charitable or that its activities are not genuine. In the circumstances, we are of the view that the Assessee ought to have been granted registration u/s.12AA of the Act. We direct that the registration u/s.12A being allowed to be Assessee. 11. The Hon ble Karnataka High Court in the case of DIT(E) Vs. D.R. Ranka Charitable Trust (2018) 100 taxmann.com 371(Karn ) has laid down that at the time grant of registration u/s.12A the charitable object of the Assessee and genuineness of its activities has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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