2013 (11) TMI 1603

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...., 1961. The assessee applied for registration u/s. 12AA of the Act in Form No. 10A on 9.3.2012 and the same was rejected by the DIT(E) on the following reasons: i) Memorandum of Trust Deed of the Society contains objects in descriptive nature without emphasising on any specific dominant object. ii) The society has got religious object in addition to charitable object. iii) Assessee society has not commenced any activity so as to carry on the objects for which it was established. Being aggrieved by the order of the DIT(E), the assessee filed the present appeal. 3. We have heard both the parties and perused the material on record. We have carefully gone through the objects mentioned in the Memorandum of Trust Deed of the assess....

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....ies and there is no restriction in carrying on religious objects along with charitable objects The assessee has liberty to carry on religious activities along with charitable activities. This issue came for consideration in the following cases and the courts held that the assessee can carry on charitable activities along with religious activities: 1) CIT v. Jaipur Charitable Trust (81 ITR 1) (Del). 2) Zenith Tin Works Charitable Trust v. ITO (102 ITR 119) (Bom). 3) CIT v. Ahmedabad Rana Caste Association (88 IATR 354) (Guj.) 4) CIT v. Chandra Charitable Trust (294 AITR 896) (Guj). 5) Addl. CIT v. AA Bibijiwala Trust (100 ITR 516) (Guj). 6) ACIT v. Barkate Saifiyah Society (213 ITR 492) (Guj). 7) Gulam Moihiuddin Trust v....

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..... We have gone through all the judgements cited by the learned counsel for the assessee. The facts of the case in the case considered by the Gujarat High Court squarely apply to the facts of the case on hand. The department has not brought any contrary decision to our notice. In our opinion, in the circumstances under consideration, the DIT(E) should not have rejected the application of the assessee for registration u/s 12AA of the Act on this reason. Commenting on the Honourable Gujarat High Court decision, the DIT(E) has observed that the Hon'ble High Court has introduced a new concept known as "charitable religious trust." According to him, trust has to be either wholly religious or wholly charitable. Otherwise, it is not entitled for re....