2006 (11) TMI 249

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted. The name of the trust was Acharya Seva Niyas Uttaranchal. The working area of the trust was to be the State of Uttaranchal. According to the trust deed, the following were the objects of the trust: "(1) To work for the welfare of the Aacharyas engaged in the area of expansion of education based on Indian life values. (2) To help economically to the individuals dedicated in the field of education considering their ability, capacity and duration of service provided. (3) To select such Aacharyas in whose schools education based on India life values is provided and Indian Sanskars are given. To list such schools and affiliate them. (4) To do other works in the interest of nation and society. (5) To make regulations to fulfil the above....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion of sufficiency or otherwise of the initial contribution made by the founder to the trust fund is not a relevant consideration for the purpose of granting registration under s. 12AA. Our attention is drawn to p. 7 of the paper book which is a copy of the written submissions filed before the CIT. In para 5 thereof, the assessee has taken that it being a public trust has received contributions from the public and the balance in the bank as on date (21st Sept., 2004) was Rs. 5,71,927. In support of the submission, the copy of the bank statement was also attached. It was contended on this basis that even the objection of the CIT that with the paltry amount of Rs. 500, the charitable activities cannot be carried out is not justified on merit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ities of the trust. The sufficiency or otherwise, as rightly pointed out on behalf of the assessee, is not a relevant factor while dealing with an application for registration under s. 12AA. The section in terms does not make it a consideration for the grant of registration. Further, there is a board of trustees constituted by the trust deed and the board has been authorized to collect contributions from schools and society to meet the objects of the trust and has been directed to deposit the contributions into the corpus fund. The corpus fund is to be invested in the prescribed modes and cl. 6.7 of the trust deed authorizes the trustees to utilize the earnings from the corpus fund towards meeting the objects of the trust. In special cases,....