Trust activities qualified as "charitable purpose" u/s2(15), directed registration u/s12AB and 80G exemption granted (15)

Whether activities qualify as "charitable purpose" under s.2(15): ITAT held the trust's activities are purely charitable within s.2(15); the tribunal found CIT(E) impermissibly probed assessment-stage factual matters and there was no challenge to the genuineness of activities. Outcome: activities held charitable. Whether registration under s.12AB and consequent exemption u/s 80G should be granted: on the basis that requisite particulars were furnished and no adverse finding on genuineness existed, ITAT directed grant of registration under s.12A(1)(ac)(iii)/12AB and held the trust eligible for exemption u/s 80G.

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Issues: Whether the Commissioner of Income Tax (Exemptions) was justified in denying registration under section 12AB of the Income-tax Act, 1961 and consequential exemption under section 80G in the facts of the case.

Analysis: The assessee trust submitted detailed documentary evidence of charitable activities (including audited accounts, bank statements, beneficiary confirmations, project details and property purchase documents) showing activities in the fields of health, education, relief to poor and welfare of elderly persons and a project called LUJ providing financial assistance to needy persons. The Commissioner relied on the trust deed objects (welfare of senior citizens) and considered that certain activities (LUJ) were not for senior citizens, treating this as a specified violation under the Explanation to section 12AB(4). The Commissioner also queried a corpus donation's source. The material on record contained no allegation challenging the genuineness of the charitable activities and the assessee complied with multiple information requests. The Commissioners examination included matters that pertain to assessment proceedings rather than the statutory test for registration under section 12AB, and the documentary record established that the activities fall within the definition of charitable purpose under section 2(15).

Conclusion: Registration under section 12AB of the Income-tax Act, 1961 is to be granted to the assessee and the assessee is eligible for exemption under section 80G of the Income-tax Act, 1961. The appeals are allowed in favour of the assessee.

Ratio Decidendi: Where a trusts activities, supported by documentary evidence, satisfy the definition of charitable purpose and no challenge to genuineness is shown, registration under section 12AB cannot be refused based on assessment-related inquiries or on a narrow construction of objects if the substantive activities meet section 2(15).

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