TaxTMI 
TaxTMI 
2026 (6) TMI 731
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....n holding that the appellant trust has not involved itself in any of the charitable activities and thus not eligible for approval u/s 80G. 4. The CIT erred in holding that the appellant's object did not fall within the meaning of education/medical/relief for poor and thus did not fall within the definition of section 2(15) of the Act. 5. The CIT clearly failed to appreciate that the appellant's object is for upliftment of rural communities and upliftment of their life. 6. The CIT erred in holding that the appellant's activities are only for the purpose of making profits and not charitable. 7. The CIT did not appreciate the fact that the Trust's objective is to do all or any of other charitable activities conducive to attainment of the objects of the Trust and furtherance of the objects, but shall not include activities of profit and that the income will be applied for charitable purposes. 8. The appellant craves the leave of the Hon'ble Tribunal to adduce additional grounds in support its contentions before and during the course of hearing of this appeal. 3. The brief facts of the case emanating from the records ar....
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....t to mention the CBDT circular no 11/2008 wherein it is clearly described that 'Relief of poor' encompasses a wide range of objects for the welfare of the economically and socially disadvantaged or needy. It will, therefore, include within its ambit purposes such as relief to destitute, crphans or the handicapped, disadvantaged women or children, small and marginal farmers. indigent artisans or senior citizens in need off aid. From the details available on records and from the financials, it is seen that the trust is not actually engaged in any such activities which can be treated as relief of the poor. Neither, no amount has been spent towards "Charity". 3.6 Further, The applicant during the course of proceedings submitted that the Hon'ble ITAT in its own case has allowed the registration by directing that the application of the funds should not be verified at the time of registration. The ITAT has stated that what is relevant Is to see with reference to the objects of the Trust if they are charitable in nature or not. However, the contention of the applicant is not acceptable given the fact that the applicant has not undertaken any charitab....
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....me is applied for charitable purposes. 3.7 Trust activities cannot be held as education: The applicant in its Form 10 mentioned one of its objects as Education. To consider the activities of the Trust as education and in turn a charitable one, it is necessary that such activities of the association should fit to the limb of education as set out by the Hon'ble apex court the case of Sole Trustee, Loka Shikshana Trust v. CIT (1975) 101 ITR 234. And New Nobile Educational Society v. CCIT (2022) 143 taxmann.com 276. However, from the notes on activities, the objects of the Trust as per its deed and its financials for various years, it is seen that the Trust does not engage itself in any of the educational activities as described in the above para. 3.8 Trust activities cannot be held as Medical relief: The applicant in its Form 10AB mentioned one of its objects as Medical relief. But in the instant case, none of the activities of the trust can be classified as medical relief as evident from its objects, notes on objects, notes on activities and financials. 3.9 Hence, from the above discussion it is clear that the applicant has not underta....
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....f Village Industries or to provide facilities for a study of the problems relating to Khadi or Village Industries. Further the ld.AR stated that the assessee to utilize the services of rural women and men for such manufacturing activities which it deems fit to be use with the intention of providing employment opportunity. He also submitted that the assessee to form establish and maintain SHGs and form federations and undertake Micro credit and Microenterprises including departmental study training centres and others and to start and manage a printing press and control activities in the nature of printing materials for Gandhigram Trust and other sister institutions and other relevant institutions and others with a motive of giving employment potential for rural women and others and publish books relevant to the ideology and others and also to start and manage centres for training youths in self-employment and job-oriented courses and others. 10. The ld.AR argued that the ld.CIT(E) did not appreciate the fact that the Trust's objective is to do all or any of other charitable activities conducive to attainment of the objects of the Trust and furtherance of the objects, but shal....
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....ssessee has allegedly not undertaken charitable activities and that the publication and natural dyeing activities are commercial in nature. The ld.CIT(E) further observed that no expenditure has been incurred directly towards charitable purposes and therefore the activities cannot be regarded as falling within the ambit of relief of the poor, education or medical relief. We are unable to subscribe to the above reasoning of the ld.CIT(E). 16. The material placed before us demonstrates that the assessee was established with the avowed object of generating employment opportunities to economically weaker sections, particularly rural women, artisans and marginalized communities. The publication division and natural dyeing centres are not standalone profit-oriented ventures but are intrinsically linked to the charitable objectives of the trust. The activities are undertaken as a means of providing livelihood, skill development, training and employment opportunities to disadvantaged sections of society. The very object clauses of the trust indicate that such activities are intended to further the charitable purposes and not to maximize profits. We further note that the financial statem....