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TMI Blog2024 (12) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee-trust were submitted before the CIT(E) and no specific finding has been given that the said expenses were not charitable in nature. We further observe that for the past three years, the Objects of the trust have not been challenged by the Tax Authorities and even on the principle of consistency, unless any new facts comes on record, registration cannot be denied to the assessee, on the basis of same set of facts. Accordingly, CIT(E) has erred in facts and law in denying granting of registration to the applicant-trust u/s.12AB of the Act. As decided in Bayath Kutchhi Dasha Oswal Jain Mahajan Trust 2016 (9) TMI 8 - GUJARAT HIGH COURT] has held that where apart from Objects which were for the benefit of religious community, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration/s.12AB of the Act, however, the ld.CIT(E) on perusal of the Objects of the trust was of the view that on a reading of some of the Objects of the trust, the same were not for the benefit of public at large and were primarily for the benefit of the Members of the applicant-trust and their family members. The Ld.CIT(E) was of the view that the Objects of the trust are to protect the business interest and welfare of its Members and, hence, cannot be considered as charitable in nature. The CIT(E) observed that applicant-trust is established and functioning as Welfare Association or Union and also collecting fee from its Members. The Welfare activities adopted by the applicant-trust for its Members are in the nature of services being ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own/village. The Association charges fees from its members before the transportation on the basis of the distance involved. The membership and payment of fees are mandatory and the element of voluntary contribution is missing. The association is vigorously pursuing transportation business by receiving freight charges on behalf of its members. The welfare activities adopted for the truck drivers, cleaners and mechanics of the truck owner are in the nature of staff welfare activities, as are common in other business organizations which cannot be termed for general public utility. 9. Therefore, as the aforesaid objects are for the benefit/welfare/interest of the members of the association Le. members and their families of Salej Rotary Seva Fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd other activities, is conducting programs for women s empowerment is engaged in setting up water treatment plants as part of its Objects etc. The ld.counsel for the assessee submitted that the assessee-trust has also been engaged in distributions of sweaters, bags, slates, stationery to the children of Salej Prathmik School, Salej, Gandevi, Navsari. Further, it was submitted that on perusal of Profit Loss account, it can be seen that no money has been spent by the applicant-trust which is not for the benefit of general public or not in accordance with the provisions of law. The ld.counsel for the assessee submitted that the details of donations received and expenditure related to the trust along with supporting evidence were furnished bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntal Objects, which were only aimed at providing administrative support to the main Objects of the trust, which in our view, are charitable in nature. We also observe that all details of expenses incurred by the assessee-trust were submitted before the Ld.CIT(E) and no specific finding has been given that the said expenses were not charitable in nature. We further observe that for the past three years, the Objects of the trust have not been challenged by the Tax Authorities and even on the principle of consistency, unless any new facts comes on record, registration cannot be denied to the assessee, on the basis of same set of facts. Accordingly, looking to the instant facts, we are of the considered view that the Ld.CIT(E) has erred in fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t all. A perusal of the Objects of the trust itself shows that it has not been formed for the purpose of the benefit of any particular religious community and the Objects of the trust are general in nature. Therefore, it was submitted that effectively the Ld.CIT(E) had no reason to the denial of grant of benefit u/s. 80G(5) of the Act. 10. In response, the Ld.DR placed reliance on the observations made by the Ld.CIT(E) in his order. 11. We have heard both the parties and perused the material available on record. On going through the Objects of the trust, we observe that the trust has not been formed for the benefit of any specific religious community. Though, the term religious is appearing in the Objects of the trust but the same is only b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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