TaxTMI 
TaxTMI 
2023 (9) TMI 1511
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....arned CIT erred in relying on the case laws which are distinguishable and not at all applicable to the facts of the case of the assessee while denying registration to the assessee. 4. That the observation of Learned CIT that the assessee has not incurred on charitable activities as per object mentioned in the Trust Deed is totally incorrect and improper. 5. That the Learned CIT erred in holding activities of the Trust are not genuine and the documentary evidence with regard to charitable activities of the Trust has not been furnished by assessee. 6. That the appellant craves leave to Add to and / or Amend, modify or withdraw the grounds outlined above before or at the time of hearing of the appeal. 2. The brief facts are that the assessee is a charitable trust, which was formed in the year 1958 by Guru Mahant Harsevanand Chela Shri 108, Mahant Swamy Atma Vivekandand Ji Paramhans, for the welfare of the people and to provide medical facilities to the poor. Since then, it has been carrying out charitable activities as per its objects. On 30.12.2000, a supplementary trust deed was made after carrying out certain amendments. Accordingly, it had applied for....
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.... are not related to charitable objects of the trust. The relevant observations of the ld. CIT (Exemptions) for rejecting the application read as under: "As per trust deed no expenditure has been incurred on charitable activities as per object mentioned in the trust deed. As per Income & Expenditure account filed for year ending 31.03.2021, following expenses have been shown to have incurred, but not related to charitable object of the trust. A perusal of income/expenditure account of the assesse for 31.03.2021, shows that expenses of Rs 1,32,13,386/- have been incurred but not related to charitable object of the trust. Assessee trust earn income from sale of agriculture products and expenses are incurred on donation, administration, audit fee, bank charges, photography etc. but not related to the object mentioned in the trust deed. Therefore, activities of assesse trust not found genuine. Assessee failed to file supporting documentary evidences with regard to charitable activities as per object of the trust. Therefore no verification of the object as per the trust deed with the activities carried out if any could be made. Thus the genuineness of the activ....
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....s incumbent on the assessee to substantiate not only the expenditure incurred as per the objects of the trust but also the genuineness of the activities and the expenditure incurred thereon. The ld. CIT has pointed out that certain expenditure debited do not relate to carrying out the charitable activities. Therefore, the registration has rightly been denied by the ld. CIT (Exemptions). 7. We have heard the rival submissions, perused the relevant material placed on record and also the observations of the ld. CIT(Exemptions) denying registration under section 12AB of the Act. As noted above, the assessee has come into existence in the year 1958 and since then it has been found to be carrying out charitable activities as per its objects for more than six decades. Again, in the year 2000, a supplementary trust deed was filed and registration under section 12A of the Act was sought. The ld. CIT (Exemptions), after examining the details, has granted registration under section 12A of the Act, vide Certificate dated 3.7.2000. Thereafter, various assessments have been completed under section 143(3) of the Act, wherein the assessee was given benefit of the provisions of section 11 of the....
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....ted earlier. Once the similar nature of activities have been accepted in the past and also exactly similar nature of expenditures have been held to be incurred for carrying out the charitable activities, then how these expenditures can be held to be not for charitable purpose or carrying out charitable activities. 9. The ld. CIT (Exemptions) has not considered the details which were filed along with replies to various show cause notices, in which all these aspects have duly been explained. Thus, the finding and observation of the ld. CIT (Exemptions) is set aside. Accordingly, we direct the ld. CIT (Exemptions) to grant registration to the assessee-trust under section 12AB of the Act. 10. The ld. CIT has cited the judgment of the Hon'ble Supreme Court in the case of CIT vs. Dawoodi Bohara Jamat, 364 ITR 31 (SC). We are unable to understand as to why the ld. CIT has referred to this judgment, as this is judgment is squarely in favour of the assessee, wherein the Hon'ble Apex Court has held that if the assessee-trust is formed with both religious and charitable objects, the claim for registration under section 12AA of the Act cannot be denied and only in cases where the....