2022 (2) TMI 1083

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....e and in law the action of the Learned Assessing Officer in denying registration u/s 12AA of the Income-tax Act, 1961 is arbitrary, erroneous and illegal and must be quashed with directions for registering the same forthwith." 3. Akhil Bhartiya Shree Vekunthnath Sewa Dharmarth Trust Vrindaban - the Appellant herein was incorporated in August, 2010. The Trust was registered vide Registration No.5382 on 05.08.2017. 4. The Trust had been indulging in charitable activities including providing food to the poor through Bhandaras. It had audited accounts for the years ended 31.03.2013 to 31.03.2015. 5. The Trust submitted an application for registration u/s 12AA of the Income-tax Act, 1961 on 13.10.2015 to the Ld. Commissioner of Incometa....

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....ust was on the construction of building and purchase of land which was not covered under any of the limbs of Sec.2(15) of the Act; • that the purchase of land and the subsequent construction of Temple complex thereof by the Trust had been sourced mainly from corpus donations; • that the corpus donations lacked specific directions; • that the corpus donations having been utilized by the Trust for the purchase of land and construction of building was not charitable act; • that corpus donations had not been obtained to be utilized right at the very outset of the activities of the Trust; • that corpus funds were permanent funds retained for the basic expenditure needed for the adm....

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....or cow protection and Temple construction to deprecate it. 10. The Ld. CIT(E) held that the Trust has failed to show any sale of milk, butter, etc. The Ld. CIT(E) failed to understand and appreciate that the Trust was not holding any cows as part of its chattel so as to draw any milk or make any butter out of the yield. The Ld. CIT(E) erred in observing that the construction of Temple is not a charitable activity. The Ld. CIT(E) did not realize that if there is any benign activity for the public at large it is always charitable. The definition under Section 2(15) of the Act is not exhaustive. It is inclusive and merely illustrating. The scope of Section 2(15) is to be read with contents of the supplemental provisions such as Sections 11,....