TaxTMI 
TaxTMI 
2024 (12) TMI 910
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....ust u/s. 12AB of the Income Tax Act, 1961 (hereinafter referred to as "the Act") and also denying grant of approval u/s. 80G of the Act. 2. We shall first take up the appeal of the assessee in ITA No.1061/Ahd/2024 against the order passed by the Ld.CIT(E) denying grant of registration to the applicant-trust u/s. 12AB of the Act. 3. The brief facts of the case are that the assessee filed application before the Ld.CIIT(E) for grant of registration/s.12AB of the Act, however, the ld.CIT(E) on perusal of the Objects of the trust was of the view that on a reading of some of the Objects of the trust, the same were not for the benefit of public at large and were primarily for the benefit of the Members of the applicant-trust and their family mem....
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.... Association reported in 9 taxmann.com 267 decided the matter in favour of revenue and held as under. "9. On examination of the objects and the purpose of the Association in the present case, it emerges that the respondent-Association is union of Truck Operators constituted for facilitating its members to carry on the trade of transportation and not to allow the outsider or non-member to undertake any business activity within the precincts of Hansi Town/village. The Association charges fees from its members before the transportation on the basis of the distance involved. The membership and payment of fees are mandatory and the element of voluntary contribution is missing. The association is vigorously pursuing transportation business by r....
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....g mankind amidst the pandemic. The ld.counsel for the assessee submitted that the Objects of the assessee-trust are not specific to its Members and the Ld.CIT(E) has only selectively picked up a few Objects to deny to grant of registration to the assessee-trust. The ld.counsel for the assessee submitted that the assessee is providing medical relief to public at large, helping victims during disasters, is engaged in promoting educational, agricultural, social and other activities, is conducting programs for women's empowerment is engaged in setting up water treatment plants as part of its Objects etc. The ld.counsel for the assessee submitted that the assessee-trust has also been engaged in distributions of sweaters, bags, slates, stationery....
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....ilable on record. On going through the contents of the order passed by the Ld.CIT(E), we observe that the Ld.CIT(E), out of various Objects submitted by the assessee, only hand picked a few Objects to deny registration to the applicant-trust on the ground that the trust was primarily found for the benefit of the Members of the trust along with their family Members. However, we observe that the Objects which were selected/picked up by the Ld.CIT(E) were only incidental Objects, which were only aimed at providing administrative support to the main Objects of the trust, which in our view, are charitable in nature. We also observe that all details of expenses incurred by the assessee-trust were submitted before the Ld.CIT(E) and no specific fin....
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....s" was appearing. The Ld.CIT(E) was of the view that since the assessee was engaged in promotion of religious activities and not for charitable activities/purposes exclusively, the assessee was not liable to be granted benefit of Section 80G(5) of the Act. 9. Before us, the ld.counsel for the assessee submitted that a bare perusal of the Objects of the trust would show that the trust has not been formed for the purpose of benefiting any particular religious community at all. A perusal of the Objects of the trust itself shows that it has not been formed for the purpose of the benefit of any particular religious community and the Objects of the trust are general in nature. Therefore, it was submitted that effectively the Ld.CIT(E) had no rea....