Tribunal grants charity Trust registration emphasizing genuine activities over fund details.

The Tribunal allowed the appeal, setting aside the rejection of registration u/s.12AA by the Ld. CIT (Exemption). Emphasizing Trust objects over fund details, the Tribunal held Trust activities' genuineness as an assessment matter, not a registration criterion. It determined Trusts with charitable and religious objects are exempt from section 13(1)(b). Relying on precedent, the Tribunal granted registration u/s.12AA to the Trust, following a decision by the Gujarat High Court. The order was pronounced on January 16, 2019.

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Issues involved:
1. Rejection of application for registration u/s.12AA of the Income Tax Act, 1961 by the Ld. CIT (Exemption) based on specific reasons.
2. Interpretation of the objects of the Trust and applicability of section 13(1)(b) of the Act.
3. Consideration of funds and sources of funds at the time of granting registration u/s.12AA.
4. Analysis of relevant judicial pronouncements and decisions to determine the criteria for granting registration u/s.12AA.
5. Examination of whether section 13(1)(b) of the Act applies to Trusts with charitable and religious objects.

Detailed Analysis:
1. The appeal arose from the rejection of the application for registration u/s.12AA by the Ld. CIT (Exemption) based on the reasons of limited membership to the Jain community and lack of donor details in receipt books.
2. The Ld. AR argued that registration should focus on Trust objects, not fund applicability. Citing judicial decisions, it was emphasized that Trust objects are paramount at the registration stage, while section 13(1)(b) applicability is an assessment matter.
3. The Ld. DR supported the Ld. CIT's decision based on unaccounted donations and Trust's Jain community focus.
4. The Tribunal referred to judicial precedents emphasizing Trust objects as the key consideration for registration under section 12AA. The Tribunal highlighted that Trust activities' genuineness is an assessment matter, not a registration criterion.
5. The Tribunal further analyzed the applicability of section 13(1)(b) and emphasized that Trusts with both charitable and religious objects are not solely charitable, thus exempt from section 13(1)(b).
6. Relying on the Gujarat High Court decision, the Tribunal determined that the Trust's composite nature (charitable and religious objects) makes section 13(1)(b) inapplicable, leading to the grant of registration u/s.12AA to the Trust.
7. After examining the facts and legal precedents, the Tribunal set aside the Ld. CIT's order and directed the grant of registration u/s.12AA to the assessee Trust.
8. Consequently, the Tribunal allowed the assessee's appeal, pronouncing the order on January 16, 2019.

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