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TMI Blog2025 (4) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... wing substantial questions of law:- "1. Whether on facts & circumstances of the case, ITAT is correct in directing the CIT(E) to grant the registration u/s 12 AA of that Act irrespective of the findings by the CIT(E) that the activities of the trust is not entirely charitable for public at large? 2. Whether on facts and in circumstances of the case and in law, the ITAT is correct in not considering the findings of the CIT(E) that trust has received huge donations as corpus fund but in the copy of donations receipts produced it revealed that there is no specific purpose or any details of donors mentioned in the copy of the receipt book?" 2. The assessee / respondent herein has applied for registration under Section 12AA of the Act and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligious in nature and, therefore, the appeal deserves to be allowed. 4. Mr. Sumit Nema, learned Senior Counsel appearing through video conferencing for the assessee / respondent herein, would support the impugned order and submit that the ITAT has clearly recorded a finding that the objects of the assessee Trust are both charitable and religious in nature, therefore, the ITAT has rightly granted the application for registration in favour of the assessee under Section 12AA of the Act. 5. We have heard learned counsel for the parties and considered their rival submissions made herein-above and also went through the material available on record minutely and thoroughly as well. 6. Section 12AA(1)(b)(i) of the IT Act states as under:- "12AA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ires 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 objects 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 of the Act. 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. 10. It was argued before us that the Commissioner is required to be satisfied about two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 12-AA of the Act. There the Commissioner would be bound to record the finding that an activity or activities actually carried on by the trust are not genuine being not in accordance with the objects of the trust. Similarly, the situation would be different where the trust has before applying for registration been found to have undertaken activities contrary to the objects of the trust." 9. The principle of law laid down in Ananda Social and Educational Trust (supra) has been followed by Supreme Court with approval in the matter of Commissioner of Income Tax Exemptions v. M/s International Health Care Education and Research Institute Special Leave Petition (Civil) Diary No.19528/2018, decided on 11-2-2025 in which it has been held i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not purely for charitable purposes. It is the Trust for both charitable and religious purposes. In such circumstances by applying the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Income Tax Vs. Barkate Saifiyah Society (supra.), section 13 (1) (b) is also not applicable in the case of the assessee Trust herein." 11. In view of the categorical finding recorded by the ITAT that the purposes and objects of the assessee Trust are both charitable and religious in nature, which could not be contradicted competently by learned counsel appearing for the appellant / Revenue during the course of argument before us, as such, the ITAT is absolutely justified in holding that the assessee Trust is entitled for registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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