2020 (4) TMI 862

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d Tribunal allowed the appeal filed by the Assessee, a Charitable Trust viz., Bhagawan Mahavir Digambara Jain Management Trust, Chennai and held that the Assessee was entitled to registration as Charitable Trust under Section 12AA of the Act read with Section 80G of the Act. The relevant portion of the order passed by the learned Tribunal is quoted below for ready reference. "4. It is to be seen that Section 11 of the Act provides for exemption not only for the charitable institutions, but also for religious institutions. The DIT (E) is therefore not justified in rejecting the applications of the assessee trust for registration under Section 12AA and grant of approval under Section 80G. We, therefore set aside the impugned order of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vant portion of the judgment rendered by the Madras High Court is quoted below for ready reference. "5. Learned standing counsel appearing for the Revenue reiterated the submissions made before the Tribunal and contended that the registration under Section 12AA of the Income Tax Act cannot be granted to a trust having both charitable and religious objects on an application under Section 11(1)(a) of the Income Tax Act. 6. The very issue raised by the Revenue has been dealt with by a Division Bench of this Court in the case of CIT Vs. Arulmighu Sri Kamatchi Amman Trust reported in (2012) 206 Taxmann 69. In the said case, the respondent / assessee sought for registration under Section 12AA of the Income Tax Act on th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is not in excess of fiteen per cent of the income from such property shall not be included in the total income of the previous year of the person in receipt of the income. Thus, the Division Bench held "from a reading of the above, it is clear that the income derived from the property held under trust wholly for charitable and religious purpose, shall not be included in the total income of the Trust. Therefore, the said provision would be applicable to both the Trusts established with the object of charitable as well as religious purposes. Therefore, Section 12AA of the Income Tax Act does not make any difference between the Trusts created with the object of charitable and religious purposes and, even if the Trust is not created with both ....