2023 (2) TMI 300

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....er passed u/s 12AA(1)(b)(ii) of the Income Tax Act 1961, [in brevity the Act] for A.Y.2019-20. The assessee has raised the following grounds which are read as under: "1. Lopsided, fractured and parochial interpretation as to the objects of the Trust by the Ld. CIT (Exemptions). 2. Rejection of Application for registration u/s 12AA. 3. A separate sheet is annexed hereto as to the detailed grounds of appeal and facts of the case. 1. The order passed by the Ld. CIT(Exemptions) is contrary and opposed to the facts and is devoid of the principals of natural justice (Audi alteram partem). 2. The Ld. CIT(Exemptions) erred in appreciating the objects of the Trust in its entirety and wholesomeness and pas....

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....ile rejecting the registration under section 12AA of the Income Tax Act. The Clause (c) of the object clause reads as follows: "To propagate the name of Lord, Biblical Teachings, Christian faith, gospel by holding arranging spiritual discourses and conferences, spiritual gathering, conventions, camps, lectures, training programmes, meetings, reading sessions, singing session seminars, symposiums, assemblies, walks. crusades, talks, campaigns, workshops, for understanding and glorifying God. Apostolic and catholic Church and its traditions, faith practices". It may be noted here that Christianity is a faith, which believes on one Lord and service to the entire humanity regardless of caste, creed and religion. It believes in....

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....on for condonation of delay of 17 days wherein, assessee has stated that due to the pandemic Covid-19 the delay was happened for filing the appeal. Respectfully considering the order of Hon'able Supreme Courtof India in Suo Motu Writ Petition (C) NO. 3 of 2020 dated 10/10/2022the delay of 17 days is condoned. 3. Brief fact of the case is that the assessee is a charitable trust duly executed by a trust deed which is registered with Sub Registrar of the State Government (Punjab), at Amritsar on dated 16.07.2018. The trust is charitable and religious in nature and is created for welfare of general public regardless of caste, creed and religious status. The assessee trust has filed application for registration u/s 12A on dated 29.09.2019 bef....

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.... the society, irrespective of caste, community and economic status, solely for philanthropic purpose and not for the purpose of profit and shall include to this end, without prejudice to the generality of the aims." 5. The ld. CIT. DR vehemently argued and relied on the order of the ld. CIT(E). As per his argument, that assessee trust is a religious organisation and specially made for the Christian community. The trust has violated the provision of section 13(1)(b) of the Act. 6. We heard the rival submission and considered the documents available in the record. The assessee-trust has filed application for registration u/s 12A of the Act. The object clause specifically mentioned that the trust is charitable in nature and the charity w....

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.... recorded that section 13 comes into play at the time of granting exemption under section 11 and not at the time of granting registration under section 12AA. No adverse remarks have been recorded by the Commissioner (Exemptions) with regard to the objects contained in the memorandum of the assessee-trust to come to the conclusion that its activities are not genuine. Thus, it has been rightly directed by the Tribunal to the Commissioner (Exemptions) to grant registration under section 12AA. [Para 4] 12. The Hon'ble Apex court in the case of 'Ananda Social & Educational Trust v. CIT ', (Supra) held as follows: Section 12AA undoubtedly requires the Commissioner to satisfy himself about the objects of the trust or institution ....

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....el the registration of a Trust under sub-section (3) of section 12AA. There the Commissioner would be bound to record the finding that an activity or activities actually carried on by the Trust are not genuine being not in accordance with the objects of the Trust. Similarly, the situation would be different where the trust has before applying for registration found to have undertaken activities contrary to the objects of the Trust. [Para 12] 13. The Income Tax Act provides for exemption of income of charitable institutions under section 12AA of the Act and the section 2(15) of the Act defines the expression 'charitable purpose' and includes the relief of the poor, education, yoga, medical relief, reservation of environment ....