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TMI Blog2021 (3) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... lding as under:- "3. Religious Objects: While filing form 10A online, the assessee has applied for registration u/s. 12A of the Act as a "charitable" trust. However, the first page of the Trust Deed reads as under: "Whereas the President Smt. Chirra Visalakshi desirous of starting a non-profit charitable trust namely "Dhatri Foundation" for uplift the poor needy irrespective of caste, creed and religion and purpose of eradication of illiteracy and poverty, providing grant of donations for the orphanages, running old age homes, tribal welfare and to afford relief for the poor, alleviation of human suffering, bible training classes, free Medical aid programmes.... Further the object No. xii) reads as under: "to work for the moral, educational, cultural, spiritual, medical, social benefit and development of the Community." As seen from the above, the objects include religious objects also. Registration u/s 12A is granted to any trust/society only if it is created wholly for charitable purpose or wholly for religious purpose, but not for both. Since the objects of the assessee include both religious and charitable objects, registration u/s 12A cannot be granted to the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enefit and use of the general public; xv) To promote health education among the people and to provide pre-ventive medical care byway of starting Primary Health Centers, Mobile Medical Units and conducting of Free Medical Camps at all the backward villages in every month; xvi) To create awareness among the Rural women about their rights, cleanliness, child care and small savings etc., xvii) To provide clean and healthy drinking water to the people by establishing R.O. Water Plants, xviii) To start and run cottage Industrial training centers for women in Tailoring, basket making. Handicrafts, Phenol making, embroidering, candle making etc., xix) To establish Family Counseling Centers, Youth Centers and educate all the depressed people mentally, socially and economically to inculcate a sense of self respect, service and sacrifice; xx) To establish Computer Education Centers, Music Schools for unem-ployed youth from the lower caste communities on free of charges; xxi) To organize or work for any object of general good and welfare as determined by the trust. xxii) To establish Community Welfare centers, Physiotherapy and Rehabilitation Centers and granting the gifts for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of sec.13(1)(b) of the Act. There is nothing in the language of this provision to suggest that an institution of mixed objects is precluded from getting registration u/s 12AA of the Act. It is also seen from the objects of the trust in question that the assessee is carrying on no non-charitable or non-religious activities. We place reliance on the judgement of ACIT v. Barkate Saifiyah Society 213 ITR 492 (Guj) and CIT v. Chandra Charitable Trust 294 AITR 86 (Guj), wherein it was held that a trust can either be for religious purposes or for charitable purposes or it can be for both. Only a trust which is for religious purpose is excluded and debarred from registration u/s 12AA of the Act. A trust whose object is charitable as well as religious is not debarred from registration. Further, in the case of New Life in Christ Evangelistic Association v. CIT & Others 246 ITR 532 (Mad), wherein it was held that for granting or refusing registration u/s 12A in relation to such trust, the only condition precedent is that an application for registration should be made in time and the accounts of the institute should be audited. No enquiry about objects of the trust can be made u/s 12A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23R.253. Considering these judgments we are of the view that the Tribunal was right. Therefore, this appeal is dismissed." 5.4 From the judgment of the Hon'ble Jurisdictional High Court, it is clear that if the primary or dominant purpose of an institution is charitable than any other object which by itself might not be charitable but just merely ancillary or incidental to the primary or dominant purpose, would not prevent the trust or institution from being a valid charity. 5.5 While coming to the instant appeal, the observations and conclusion of the ld.CIT(E) having no strength of law. There is no bar for grant of registration to the Trust/Institution which is having mixed activities i.e. charitable and religious in nature as held by the ITAT, Hyderabad Bench in the case of Rehoboth Mission case (supra), and though we did not find any fault in the objects of the Assessee, however the Ld. CIT(E) is empowered and at liberty to restrict the activities of the trust in consonance with the objects only , hence on the aforesaid analyzations and respectfully following the judgment of the Hon'ble Jurisdictional High Court and Co-ordinate bench of the Tribunal, we are unable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered trust. There is no stipulation that the trust should have already been in existence and should have undertaken any activities before making the application for registration. Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term 'activities' in the provision includes 'proposed activities'. That is to say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable in nature and whether the activities which the Trust proposed to carry on are genuine in the sense that they are in line with the objects of the Trust. 6.5 The Hon'ble Apex Court in the aforesaid case reminded that carrying out of any activities is not a stipulation for grant of registration u/s 12A of the Act and even section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done and the term 'activities' in the provision includes 'proposed activities'. 6.6 On the aforesaid analyzations, there is no such bar as held and observed by the ld.CIT(E) that the charitable activities carried out by the Assessee are either meagre or nil, hence, it is pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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