TaxTMI 
TaxTMI 
2025 (7) TMI 1156
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....the Ld. CIT(E) stated that the assessee has not justified of the charitable activities have been carried out by the trust. It was also the observation of the Ld. CIT(E) that majority expenses are in the nature of administrative expenses and commercial/trade nature. Ld. Counsel for the assessee referring to pages 1 to 42 of the Paper Book submitted that the assessee has furnished all the details called for by the CIT(E) including the photographs of the assessee trust in proof for carrying out the charitable activities of distribution of food to poor people without cast, creed and religion. Ld. Counsel submitted that these photographs are placed at pages 18 to 27 of the Paper Book referring to page 28 to 29 the Ld. Counsel submits that the tr....
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....sed for imparting spiritual education and administrative expenses are just bank charges and audit fees. While dealing with application for registration, the Ld. CIT(E) is required to examine the genuineness of the objects of the society, whether is charitable or not. At the stage of granting registration u/s 12AA, the CIT(E) is required only to assess the genuineness of activities and the objects of the trust, not the quantum or nature of income or expenditure. In the instance case, the Ld. CIT(E) had no objection on the objectives of the trust. 4. Reliance was placed on the following decisions by the Ld. Counsel for the assessee which is as under: - S.No. Name of case Court Held 1. Institute of Chartered Accounts of In....
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....y of assessee, out of various multiple objects and activities, has element of commerciality, that would result in denial of exemption u/s 11/12 to that extent and in that particular previous year only but the CIT(E) in exercise of power u/s 12AB, cannot deny registration to assessee. 4. Thanthi Trust vs. DIT(E), TCA No.822/2018, dated 29.10.2020 Hon'ble Madras High Court Where assessee-trust, engaged in business of publishing newspaper, did not run any school or college but utilized surplus of income from business for donation to a trust which was running educational institution, earnings of assessee being spent for charitable purpose, registration granted to it could not be cancelled. 5. Bosco Educational Society vs. CCIT....
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....at profit making should not be in accomplishing or carrying out the objects but should be for the purpose of the trust or the object of the trust and if the object is without an activity of making profit, the trust does not cease to be a charity merely because it makes profit and is involved in an activity of profit in accomplishing or carrying out the object. In other words, profit making is not prohibited if it subserves the charity. 9. Ashutosh Charitable Trust of Educational & Medical Sciences, vs. CIT(Exemptions), Chandigarh, ITA No.864/CHD/2016, dated 12.01.2017 ITAT Chandigarh At the stage of grant of registration u/s 12AA of the Act, CIT is required to examine the objects of the assessee trust and genuineness of its acti....
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....tage, the focus is on the trust's plans and stated objectives, not its past actions. 5. On the other hand, the Ld. DR strongly supported the orders of the authorities below. 6. Heard rival submissions, perused the orders of the authorities below and the submissions made before us. On perusal of the order of the Ld. CIT(Exemptions) it is noticed that the reasons for rejection of registration was i) non justification of charitable activities; ii) majority of the expenses are in the nature of administrative expenses and commercial/trade the appellant could not establish that the expenses were incurred for charitable purpose and therefore the assessee is not for charitable purpose. The Ld. CIT(E) did not doubt the objects of the assessee ....