TaxTMI 
TaxTMI 
2015 (6) TMI 922
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.... the Income Tax Act, 1961. The Director of Income Tax (Exemptions) while rejecting the Registration under 12AA of the Act, held as follows: "2. From the preamble to the Trust Deed, which was executed on 17-03-2005, it is seen that, apart from promotion of academics, the settler has also desired to form the above trust for investment and as an investment agency. At page.2 of the trust deed, it is mentioned "Whereas the settler is desirous of establishing a Knowledge Center in the form of a trust for the purpose of promotion of Academics, Research & Development, consultancy investment advisory and an investment agency". Objectives of consultancy investment advisory and an investment agency are not charitable in nature. Thus, it shows the app....
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.... eligible for exemption u/s 11 of the Act. Therefore, in my view, the assessee trust would not be eligible for registration u/s 12AA of the Act. In this context, reliance is placed on the following observations made by the Hon'ble Supreme Court made in their decision in the case of Yogiraj Charity Trust vs. CIT (1976) 103 ITR 777. Where there are several object of a trust, some of which are charitable and some non-charitable, and the trustees in their discretion are to apply the income to any of the objects, the whole trust fails and no part of the income is exempt from tax. Where the objects are distributive, each and every one of the object must be charitable in order that the trust might be upheld as a valid charity. If no definite ....
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....ed to furnish a note on precise activities undertaken by the trust. In response, vide reply dated 2C.0-1.2014, it was submitted that in furtherance of its objectives, Malkolak Knowledge Centre (MKC) started conducting seminars and publishing news letters to promote academic activities. It has setup a centre for marine studies in Goa and started research and training activities. It is further stated, MKC also conducted the following training programme during financial year 2012-13: 1. Advancing frontiers for Bio-technology 2. Workshop on Robotics - today and tomorrow 3. Indian Pharmaceutical Industry perspectives 4. Orientation on molecular and immunological techniques 5. Standards and Guidelines for Quality Assurance 6. Training on pa....
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....red before us. The ld Counsel submitted before us that the assessee would amend the objects which are not charitable in nature. The ld Counsel fairly pointed out that the DIT (E) had pointed out that the objective included the following phrase: "Whereas the settler is desirous of establishing a Knowledge Center in the form of a trust for the purpose of promotion of Academics, Research & Development, consultancy investment advisory and an investment agency" which shall be modified and in its place, the assessee shall incorporate specific objects which are charitable and which would provide necessary aid for the poor and needy. Since the ld Counsel assured that the intention of creating the Trust was for the purpose of promotion of Academic....