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TMI Blog2021 (12) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... ironment as defined u/s. 2(15) - As regard other observations of the ld. CIT(E) with regard to extending activities of the trust outside India, we find that there is no restriction under the Act to carry out charitable activities beyond the boundaries of India, but such activities can be carried out with special or general approval of the CBDT. Since, the assessee has not started its activities, the question of looking into the violation of section 11(1)(a) and necessary approval, if any required for that purpose does not arise. If at all any violation is reported, then the AO is very much empowered to reject exemption claimed u/s. 11 of the Act. As regards other observations made with regard to ancillary objects and they are in comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Exemptions), Chennai, dated 28.09.2018 passed u/s. 12AA(1) of the Income Tax Act, 1961 (herein after the Act ). 2. The brief facts of the case are that the assessee is a company incorporated under section 25 of the Companies Act, 1956 vide registration certificate dated 25.09.2012. The main objects of the assessee company are as under: 1. To conduct proactive research and investigative programmes to conserve, preserve, and enhance the integrity of the natural environment and biodiversity so as to derive sustainable benefits for the human kind from the mother nature. 2. To organize and establish Research Labs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of monuments or places or objects of artistic or historic interest as defined u/s. 2(15) of the Act, and thus, the assessee is eligible for registration u/s. 12AA of the Act. 4. The Ld. CIT(E), after considering submissions of the assessee observed that although main objects of the assessee company are charitable in nature, but several objects incidental and ancillary to main objects are commercial in nature and hence, the objects of the assessee cannot be considered as charitable in nature. The Ld. CIT(E), further noted that as regards activities intended to be carried out by trust, it has intended to carry out its activities outside India, contrary to provisions of section 11(1)(a) of the Act. He, further noted that even if, assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee may violate provisions of section 11(1)(a) and 13(1)(c) of the Act, but such apprehension is only an assumption without there being any factual verification of facts of actual violation of said provisions. The CIT(E) at the time of registration, has required to verify whether the objects of the trust are charitable in nature or not and its activities are carried out in accordance with its main objects. But, the Ld. CIT(E) on assumptions have expressed some apprehensions that the assessee may violate provisions of section 13(1)(c) and 11(1)(a) of the Act. He further submitted that the trust has incorporated with the object of carrying out charitable activities and thus, while granting registration, it has to be seen whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or such documents or information from the trust as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust. The concept of enquiry of the Commissioner while granting registration u/s. 12AA has been examined by various courts, including Hon ble Supreme Court in the case of M/s. Ananda Social and Educational Trust vs CIT, (supra), where the Hon ble Supreme Court very clearly explained the power of Commissioner while granting registration, as per which the CIT(E) must consider whether 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. However, he cannot refus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. As regard other observations of the ld. CIT(E) with regard to extending activities of the trust outside India, we find that there is no restriction under the Act to carry out charitable activities beyond the boundaries of India, but such activities can be carried out with special or general approval of the CBDT. Since, the assessee has not started its activities, the question of looking into the violation of section 11(1)(a) and necessary approval, if any required for that purpose does not arise. Further, if at all any violation is reported, then the AO is very much empowered to reject exemption claimed u/s. 11 of the Act. As regards other observations made with regard to ancillary objects and they are in commercial nature, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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