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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 ..... ssee 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 Centres to investigate and analyse the impact on various environmental and social parameters by the activities of Industries and other Developmental Establishments of public and private sectors. 3. To generate collaborative endeavours in research and human resource development progr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see 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, assessee wants to extend its activities outside India, it needs to obtain a general or special order from CBDT. However, such order was not obtained from the concerned authority. He further noted that the assessee listed out other objects which are commercial in nature for which it needs to pay salar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 the trust objects are charitable or not and its activities are genuine. Unless, the assessee trust carry out its activities it cannot be concluded that the trust activities are not genuine in nature. In this regard, he relied upon the decision of Hon'ble Supreme Court in the case of M/s. Ananda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 refuse registration on the ground that no activities are carried out. The Hon'ble Karnataka High Court in the case of Sanjeevamma Hanumanth Gowda Charitable Trust vs Director of Income Tax (Exemptions) (2006) 285 ITR 327 has also considered identical issue and held that for the purpose of registration u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 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, we find that predominant objects of the assessee is preservation of environment. The ancillary objects are provided to achieve the main objects and no commercial stamp shall be made, if such objects are achieved by carrying out certain activities. If at all the assessee carry out some objects which are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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