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TMI Blog2022 (2) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... he corpus donations is neither in consonance with facts is misplaced. Section 12 of the Act does not prescribe any mode or manner in which any corpus donation has to be retained or expended. As to the transfer of the corpus of this Trust, in the event of its dissolution or discontinuation the sole condition is that the balance funds at the time of closure should be transferred to a like charity. In resolving to transfer the corpus in such an eventuality to M/s Thakur Shree Hari Das Ji Maharaj Trust no aberration of any sort can be conceived as having been committed by the Trust. Use of corpus donations and funds for charity was definitely in terms of the provisions of law and societal practice. The purchase of land and the constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th. 3. Akhil Bhartiya Shree Vekunthnath Sewa Dharmarth Trust Vrindaban - the Appellant herein was incorporated in August, 2010. The Trust was registered vide Registration No.5382 on 05.08.2017. 4. The Trust had been indulging in charitable activities including providing food to the poor through Bhandaras. It had audited accounts for the years ended 31.03.2013 to 31.03.2015. 5. The Trust submitted an application for registration u/s 12AA of the Income-tax Act, 1961 on 13.10.2015 to the Ld. Commissioner of Incometax (Exemptions), Chandigarh. 6. The objectives of the Trust include support of cows and animals, provision of education and medical relief, establishing Dharamshalas, construction of Temples and monasteries, arranging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y from corpus donations; that the corpus donations lacked specific directions; that the corpus donations having been utilized by the Trust for the purchase of land and construction of building was not charitable act; that corpus donations had not been obtained to be utilized right at the very outset of the activities of the Trust; that corpus funds were permanent funds retained for the basic expenditure needed for the administration and survival of the Trust; that the corpus funds are generally not allowed to be utilized for the attainment of the objectives; that the transfer of the Trust's corpus to M/s Thakur Shree Hari Dev Ji Maharaj Trust was restrictive in nature. 8. With such observations the Ld. CIT(E) conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) erred in observing that the construction of Temple is not a charitable activity. The Ld. CIT(E) did not realize that if there is any benign activity for the public at large it is always charitable. The definition under Section 2(15) of the Act is not exhaustive. It is inclusive and merely illustrating. The scope of Section 2(15) is to be read with contents of the supplemental provisions such as Sections 11,12 and 13 of the Act. The later sections clearly delineate religion being indeed in the realm of charity. The Ld. CIT(E) could not realize that the Trust was in dire needs of funds for pursuing its activities. The funds could be generated by the Trust after it was registered for tax exemption. The Accounts of the assessee along-with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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