Trust entitled to tax exemption under Income Tax Act for religious and charitable activities

The appeal was allowed, and registration under section 12AA of the Income Tax Act, 1961 was directed to be granted to the appellant trust. The Tribunal found that trusts with both religious and charitable objects are entitled to exemption under section 11, as per relevant case law, despite the admixture of religious and non-religious objects in the trust's activities.

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Issues involved: Appeal against refusal of registration u/s.12AA of the I.T. Act, 1961 due to admixture of religious and non-religious objects in the trust.

Summary:
1. The appellant, a trust, sought registration u/s.12AA with objects including religious and charitable activities. Respondent denied registration citing admixture of religious and non-religious objects.
2. Appellant argued that there is no prohibition for a trust to have both religious and charitable objects for exemption u/s.11. Various case laws supported this claim.
3. Respondent contended that satisfaction of charitable or religious objects is a condition precedent for registration u/s.12AA. Definition of charitable purpose u/s.2(15) was highlighted.
4. Tribunal found the objects other than the disputed clauses to be charitable. Trusts with both religious and charitable objects are entitled to exemption u/s.11 as per relevant case law.
5. Tribunal directed respondent to grant registration u/s.12AA to the appellant.

Conclusion: The appeal was allowed, and registration u/s.12AA of the Act was directed to be granted to the appellant trust.

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