TaxTMI 
TaxTMI 
2022 (2) TMI 49
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....f the Act? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in not appreciating the fact that the assessee has failed to prove with financial statements and activities carried out earlier, that they are charitable in nature as provided under Rule 11AA(3) of the Rules, 1962? 3. Whether on the facts and in the circumstances of the case, the Tribunal is right in not considering the fact that satisfaction on the part of the authority granting approval for recognition under section 12A and 80G is necessary in terms said provisions of the Act read with Rule 11AA of the Act? 4. Whether on the facts and in the circumstances of the case, the Tribunal is right in not following the decision of the jurisdictional High Court in the case of Ganjam Nagappa & Son Trust (supra). Wherein, it has been held that "grant of exemption or renewal is not automatic in character", in allowing the assessee's appeal?" 2. Facts leading to filing of this appeal in a nutshell are that pursuant to a registered deed of trust dated 21.02.2018, the assessee came into existence. The assessee filed an application for registration under Section 12AA of the Act on 20.03.2018 ....
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....39;AGRAWAL SABHA Vs. COMMISIONER OF INCOME TAX-I' 365 ITR 244 (ALL) AND 'ANANDA SOCIAL AND EDUCATIONAL TRUST Vs. COMISSIONER OF INCOME TAX AND ANR.' 426 ITR 340 (SC). 5. On the other hand, learned Senior counsel for the assessee submitted that the Tribunal has recorded a finding a fact that primary object of the assessee is for charitable purpose and the aforesaid finding of fact has not been demonstrated to be perverse. Therefore, no substantial questions of law arises for consideration. It is further submitted that since the object of the Trust is education, therefore, the nature of activity of the assessee being commercial or for business, cannot be gone into as the object of the assessee is not for advancement of any other object of general public utility. It is further submitted that since the activities of the Trust have not yet commenced, therefore, no inference with regard to its nature of activity can be drawn. It is also urged that at the time of registration of the Trust, the Commissioner should not go into the genuineness of its activity. It is also pointed out that decision of the Supreme Court in SOLE TRUSTEE, LOK SHIKSHANA TRUST, supra is no longer a go....
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....not required to examine the application of income and has to examine whether the objects of the Trust are charitable and whether the application is made in consonant with requirements of Section 12A of the Act read with Rule 17F of the Income Tax Rules. The genuineness of the activities of the Trust is not a matter to be looked into at the time of dealing with the issue of registration of the Trust under Section 12AA of the Act. (See: 'DIRECTOR OF INCOME TAX Vs. GARDEN CITY EDUCATIONAL TRUST' (2010) 191 Taxman 238 (KAR) AND 'ANANDA SOCIAL AND EDUCATIONAL TRUST Vs. COMMISSIONER OF INCOME TAX' (2020) 114 Taxmann.com 693 (SC)). 8. In the backdrop of aforesaid well settled legal propositions, we may advert to the facts of the case in hand. Clauses 2, 2(b), 3(1) and 3(2), 5, 6, 11, 13 and 8 of the Trust Deed are reproduced below for the facility of reference: 2. xxxxx (b) Subject to the provisions of sub clause (a) of clause 2, the Trustees shall hold the Trust Funds upon Trust so that as far as practicable the corpus shall always remain intact and only the income thereon shall be used, but with liberty to the Trustees at their discretion to use the corpus from ti....
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....l activity aimed at raising human consciousness, meditation, yogic practices, yogic centres for development of health, hygiene and body, experiment in peaceful, harmonious, truth seeking human life on this earth to aid any individual or institute or organization following similar objectives or helping or aiding others to promote such a life; (ii) To establish, erect, equip and maintain or contribute or aid, towards establishment, erection, construction, maintenance of townships, research centres, communities, bodies of people, experimenting for community living and collective living irrespective of caste, religion, sex, or age or country, but aspiring for community living for higher spiritual pursuits, for a life in harmony, peace, and unity and for achieving a growth of consciousness towards divine, and contribute towards maintenance and support of the inmates of such centres, to assist such activities and provide, meditation halls, reading rooms, libraries, homes, gardens, nurseries, furnishings, equipment yoga centres for development of health, hygiene and body and in general to provide for facilities and physical needs of such life, to provide for publications, printing facil....