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TMI Blog2021 (3) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... section (3) of Section 12AA. There the Commissioner would be bound to record the finding that an activity or activities actually carried on by the Trust are not genuine being not in accordance with the objects of the Trust. Similarly, the situation would be different where the trust has before applying for registration found to have undertaken activities contrary to the objects of the Trust. As far as the facts of the present case are concerned, the objects of the Trust were not considered by the ld. CIT(E), therefore, we are of the view that overall scheme and theme of the activities which are undertaken by the appellant is to make people at large aware of Cancer diseases, its dangers and what preventive care against the same was possible. Therefore, at the time of issue of granting registration, the only basis which is required to be considered is the overall objects of the Trust and its overall intent and not the basis of resources to carry out such activities or an outcome of any such activities of charitable nature undertaken without any intent or purpose of profit. Therefore, keeping in view our above discussion, we set aside the order passed by the ld. CIT(E) and direct h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Foundation in in doing so ignoring the wide range of charitable object specified in its Charter for formation, all of which are with the ultimate object of charitable activities with no objects of commercial nature. The appellant prays leave to add to, alter and / or amend the aforesaid grounds of appeal at or before the time of hearing of appeal. 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. There is delay of 09 days in filing this appeal, for which the assessee has filed application for condonation of delay. 3. We have heard the ld AR of the assessee as well as the ld. DR on condonation of delay in filing this appeal. In the application of condonation of delay, the assessee has stated as under: The Order for rejection of Registration dt. June, 28, 2019 pursuant to my application for such Registration u/s 12AA of ITA was received by me sometime on July 29th, 2019 which Order was shared by me with my tax consultant Mr. Veenu Hiran, FCA, 5-C, Madhuban, Mohan Niwas, for information and needful action. Later we had discussion on the Order received and subsequent to whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed are factually correct then the Court should be liberal in construing the sufficient cause and lean in favour of such party. A justice-oriented approach has to be taken while deciding the matter for condonation of delay. However, this does not mean that a litigant gets free right to approach the court at its will. 6. If we apply the settled principles as laid down by the Hon ble Supreme Court as well as other courts on the facts of the present case we find that the assessee has explained cause of delay that due to act of tax consultant, who in their other preoccupation of filing of ITR in July/ August, 2019 missed out in filing the present appeal. In view of the above contentions as well as facts and circumstances of the case and in the principles of natural justice, we condone the delay of 09 days in filing the present appeal and admit the same for hearing. 7. The facts of the case in brief are that the assessee filed application before the ld. CIT(E) seeking registration U/s 12AA of the Act. However, the ld. CIT(E) after considering the case of the assessee passed order U/s 12AA(1)(b)(ii) of the Act dated 27/06/2019 thereby rejected the application for registration U/s 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Granting Registration to a Trust. Thus, commencement or carrying out actual activities and/ or review of such activities to ascertain if factually in the nature of Charitable Object of the Trust is not required nor necessary for grant of Registration u/s 12AA, if the Objects defined are Charitable in nature pursuant to Sec.2(15) of ITA. Decisions relied in support of this contention are: i. Ananda Social Education Trust [2020] 114 taxmann.com 693 (SC) ii. [2015] 58 taxmann.com 335 (Rajasthan)/[2015] 2014] iii. CIT v. Vijay Vargiya Vani Charitable Trust 232 Taxman 340 (Rajasthan)/ [2014] 369 ITR 360 (Rajasthan) iv. Abacus Foundation v. CIT. [2017] 88 taxmann.com 661 (Kolkata ITAT) Similarly held by the ITAT, Bench on consistent basis in many of its decisions in the past including that of Auroveda Integral Foundation v. CIT (Exemption), Jaipur - Appeal No. 988/JP/2016-Order dt. 23.02.2017.[ Jaipur Bench of ITAT] 4. Holding of Talks Events for Cancer awareness and prevention in different strata of people even with the help of sponsorship contributions from business entities and/or generation of Surplus in the conduct of any charitable activity, is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to such conclusion, the ld. CIT(E) has not considered the object of the Trust. As per the objects of the Trust, the same is not on profit basis and the intent and also the overall scheme and theme of activities which were actually undertaken to make people at large aware of Cancer Disease, its dangers and what preventive care against the same was possible. The ld AR has also drawn our attention towards the activity filed by the settler trustee of the appellant wherein it has been specifically mentioned that the said Trust was found in February, 2018 with the objects of carrying out charitable activities primarily in the field of Cancer awareness and preventive care and to extent all kind of possible facilities, support and assistance to Cancer patients including the terminally ill patients amongst the public at large and without any object of profit making or monetary gains/benefit from such activities. The aims and objects have been such upto this date of functioning has been and continues to be same viz, awareness about Cancer ailments, detection of the disease early based on specific symptoms, educate about preventive care and support those suffering from any type of Cancer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns: (i) Credai Bengal Vs ITO (Exemption) (2019) 110 taxmann.com 113 (Kolkata Trib) (ii) Fragrance Flavours Association (2018) 92 taxmann.com 325 (Mumbai Trib) (iii) India Olympic Association (2018) 96 taxmann.com 184 (Delhi-Trib) (iv) Rajasthan Cricket Association Vs ACIT (2017) 79 taxmann.com 464 (Jaipur-Trib) 14. Although while rejecting the registration U/s 12AA of the Act, the ld. CIT(E) has also specifically held that TDS was being deducted by such contributing companies on their sponsorship contributions, therefore, these activities cannot be termed as charitable activities. However, in this regard, we are of the view that deduction of TDS would not convert a sponsorship for events/donations into commercial receipt on the basis of presumptive inference. In this regard, we rely on the decision in the case of Heart Care Management Vs DIT Exemption (2012) 22 taxmann.com 105 (Delhi) wherein it was held that whether, merely because donors were pharmaceutical companies and they deducted TDS, it would not convert a donation into a commercial receipt on basis of presumptive inference as long as assessee has credited amount as donations and also issued donation re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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