2016 (9) TMI 1031

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....in short "the Act"). 2. The assessee has raised the following issues: "1. The Director of Income Tax (Exemption) erred in holding that the applicant trust has mixed charitable and non-charitable / commercial objects viz., establishment of nursing homes, family planning centers etc. thereby rejecting application of the trust for registration u/s.12A of I.T. Act. 2. The Director of Income Tax (Exemption) erred in holding that there is no binding legal obligation on the trustees on applying income / funds of the applicant trust solely for charitable purposes. 3. The Director of Income Tax (Exemption) erred in holding that setting up nursing homes or family planning centers for needy members of society or providing....

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....cribed Form No.10A on 21.12.2012. The trust has been constituted by a Trust Deed dated 23.05.2012. It was registered with the Charity Commissioner, Mumbai on 23.11.2012. After the submission of an application, DIT(E) issued the notice to the appellant and find the object of the trust as mixed charitable and non-charitable / commercial and religious objects therefore, the said application has been rejected. Thereafter the appellant has filed the present appeal before us. 4. We have heard the arguments advanced by the learned representative of the parties and perused the record. The learned representative has argued that the authority considered the object 1(b), 1(i), 3(a), 3(b), 3(e), 3(i) and 3(j) as commercial, therefore, the authority ....

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....Trib.) in the ITAT Pune Bench in case of Kul Foundation Vs. Commercial of Income Tax - 1, Pune. 6. However, on the other hand the learned representative of the department has relied upon the finding of DIT(E) on record. The trust deed on the file speaks about the object of the trust. The specific provision which have been considered by the authority is liable to be scribed before discussion. "1(b). To establish, to maintain or assist public health centres, nursing homes, family planning centres and / or a hospitals with a view to cater to the needy members of the society. 1(i). To provide mediclaim insurance at subsidized rates either in part or full. 3(a). To set up or give grant to Orphanages, old age home. ....

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.... Mumbai and who belong to Shri Vile Parle Ghoghari Visha Srimali Jain Samaj, for Tapascharya done according to Jain religion and as approved by Board of Trustees." The said object has yet to be achieved and since the object has yet to be achieved the purpose of the trust has not been fulfilled. In support of these contentions the representative of the assessee has placed reliance on the finding held in [2015] 54 taxmann.com 143 (Pune-Trib.) in the ITAT Pune Bench in case of Kul Foundation Vs. Commercial of Income Tax - 1, Pune on similar facts. The para 16 of the said order has been discussed as under:- "At the time of grant of registration, the powers of the CIT enshrined under section 12AA of the Act, provided that the CIT is ....