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TMI Blog2023 (2) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... that where the purpose of a Trust is help to poor, medical relief, and advancement of objects of general public benefit/utility at large, the requirement of definition of 'charitable purpose' would be satisfied even if an activity of profit is carried on in the course of actual carrying out of the primary purpose of the Trust or the Institution. If a Trust's claim for charitable purpose is covered under the head of 'advancement of any other object of general public utility'. The question would arise whether the purpose of Trust or Institution involves the carrying on of any activity of profit. However, it would not be relevant as in the present case of the assessee Trust where the objects of the Trust comprise of relief of the poor, education or medical relief, etc. The observation which was taken in referred case by the bench is same view for the assessee-trust. The main object is indicated properly that there is no violation of section 13(1)(b) - CIT-DR was not able to show any evidence against the submission of assessee during the hearing. Decided in favour of assessee. - I.T.A. No.119/Asr/2020 - - - Dated:- 31-1-2023 - Dr. M. L. Meena, Accountant Memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umanity. In the Christian faith, all human beings are equal and all are sons of God. Service to humanity is the service to Almighty, is one of the themes of the Christianity faith. 4. The Ld. CIT(Exemptions) also quoted clause (c) of the object clause while rejecting the registration under section 12AA of the Income Tax Act. The Clause (c) of the object clause reads as follows: To propagate the name of Lord, Biblical Teachings, Christian faith, gospel by holding arranging spiritual discourses and conferences, spiritual gathering, conventions, camps, lectures, training programmes, meetings, reading sessions, singing session seminars, symposiums, assemblies, walks. crusades, talks, campaigns, workshops, for understanding and glorifying God. Apostolic and catholic Church and its traditions, faith practices . It may be noted here that Christianity is a faith, which believes on one Lord and service to the entire humanity regardless of caste, creed and religion. It believes in the service of the entire humanity. 5. That while rejecting the registration application u/s 12AA of the Income Tax Act, Ld. CIT(Exemptions) also referred to Clause (n) of the object clause whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of ld. CIT(E), the assessee filed an appeal before us. 4. The ld. counsel for the assessee submitted written submission which is kept in the record. The ld. counsel first invited our attention in the order of the ld. CIT(E) with reasons for rejecting application. The relevant paragraph 6 is reproduced as below: 6. In view of the above, it is held that the objects clearly restricts the operation to only a Christian Community which attracts the provisions of section 13(1) (b) of the Act. The application for grant of registration u/s 12AA is accordingly rejected. 4.1 The ld. counsel further in argument invited our attention in the object clause of the trust deed which was filed in APB page no. 16 to 32 . The relevant part of the object clause is reproduced as below: 3. OBJECTS- The aim of the Trust is to foster the spiritual and social growth of the Christian faith; assist, promote, channelize, undertake, social, charitable and humanitarian work, educational activities, provision of medical assistance/services for the benefit of and to, the downtrodden, poor and underprivileged sections of the society, irrespective of caste, community and economic status, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptions) with regard to the objects contained in the memorandum of the assessee-trust to come to the conclusion that its activities are not genuine. Thus, it has been rightly directed by the Tribunal to the Commissioner (Exemptions) to grant registration under section 12AA. [Para 4] 12. The Hon ble Apex court in the case of Ananda Social Educational Trust v. CIT , (Supra) held as follows: Section 12AA undoubtedly requires the Commissioner to satisfy himself about the objects of the trust or institution and genuineness of its activities and grant a registration only if he is so satisfied. The said section requires the Commissioner to be so satisfied in order to ensure that the object of the trust and its activities are charitable since the consequence of such registration is that the trust is entitled to claim benefits under sections 11 and 12. In other words, if it appears that the objects of the trust and its activities are not genuine that is to say not charitable the Commissioner is entitled to refuse and in fact, bound to refuse such registration. [Para 9] The purpose of section 12AA is to enable registration only of such trust or institution whose objects and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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