TaxTMI 
TaxTMI 
2012 (11) TMI 931
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.... for the reasons stated in the order the Ld. DIT(Exm.) was justified in refusing the registration to the assessee. 2. As per the facts on record, the assessee Trust was constituted on 12.01.2008. The assessee filed the application for registration u/s.12A of the Income-tax Act on 25.06.2009. The Ld. DIT (Exm.) examined the objects of the Trust and came to the conclusion that the Trust is having mixed object, partly religious and partly charitable. He, therefore, denied the registration to the assessee by observing as under:- 5. The argument of the applicant and facts of the case have been considered, The argument of the AR that Sadhu Maharaj and Sadhvi Maharaj are knowledgeable and respected person in the society is accepted but it is al....
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....ng social and cultural activities and get together, it Is prima facie a vague object. The Supreme Court in Gangabai Charities v. CWT (2001) 250 ITR 666 upheld the decision of the Madras High Court reported in 236 ITR 735 rejecting the claim for exemption on the ground that the trust besides religious objects had also indicated other public charitable, social, cultural and other allied purposes. Such admixture prevented its being considered either as a public religious trust or as a public charitable one as was found in the same case for income tax purposes in Gangabai Charities v. CIT (1992) 197 ITR 416 (SC), which was followed by the High Court for wealth tax case as well. The Hon'ble Supreme Court in the case of Yogiraj Charitable trust v....
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....amaj Dharamshala Bhawan. Trust vs. CIT reported in 302 ITR 321 has held, since section 11 of the Income-tax Act, 1961, provides for exemption to the trust registered under the Act, it is primarily the purpose of section 11 that will dominate or prevail over other consideration. It clearly shows that in the registration proceeding u/s.I2AA of the Act, what is to be analysed in respect of the objects of the trust is that it should be such that section 11 is allowable. 8 It is clearly laid down in the provisions of section 12AA(1)(b), a Trust is to be registered if the Commissioner is satisfied about the objects of the Trust and the genuineness of its activities. In the light of the above discussion, the application for registration is theref....
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.... 11(1) of the Act that save the provisions of sections 60 to 63 of the Act for claiming the income exempt which is derived from the property held under the trust which must wholly for the charitable or wholly religious purposes. If the institution or trust are engaged into the mixed object which are partly religious and partly charitable or as per the case of the Assessing Officer as well as the CIT (A) the institution or trust is having the mixed activities of charity as well as religion then the exemption cannot be claimed. The argument of the learned senior counsel is that there is a very thin line of demarcation between the charity and religion. Every religion is having the principles of the charity and many charitable purposes may not ....