TaxTMI 
TaxTMI 
2026 (10) TMI 1747
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....to the assessee trust on the basis that objects of the assessee trust are not for the benefit of public at large? and hence do not fall under the definition of charitable activities u/s 2(15) of the Income Tax Act, 1961.? 3. Brief facts of the case are that: 3.1 The respondent - Trust filed an application before the Commissioner of Income Tax, Exemption (for short 'CIT (Exemption)') for grant of registration under Section 12AB of the Act. 3.2 The CIT (Exemption), rejected the application for registration under Section 12AB of the Act filed by the respondent - Trust on perusal of the objects of the Trust. The CIT (Exemption) was of the view that on a reading of some of the objects of the Trust it was evident that the same were not for the benefit of the public at large and were primarily for the benefit of the members of the applicant-Trust and their family members. Therefore, considering the objects of the Trust, the CIT(Exemption) was of the view that such objects are to protect the business interest and welfare of the members of the Trust, and therefore, the same cannot be considered for charitable purpose. 3.3 The CIT (Exemption) also observed that the applicant - Tr....
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....4] 43 taxmann.com 243/268 CTR 1/364 ITR 31/222 Taxman 228 (SC), the Hon'ble Supreme Court made the following observations: "40. Further, establishment of Madarsa or institutions to impart religious education to the masses would qualify as a charitable purpose qualifying under the head of education under the provisions of Section 2(15) of the Act. The institutions established to spread religious awareness by means of education though established to promote and further religious thought could not be restricted to religious purposes. The House of Lords in Barralet v. IR 54 TC 446, has observed that "the study and dissemination of ethical principles and the cultivation of rational religious sentiment" would fall in the category of educational purposes. The Madarsa as a Mohommedan institution of teaching does not confine instruction to only dissipation of religious teachings but also contributes to the holistic education of an individual. Therefore, it cannot be said that the object (d) would embody a restrictive purpose of religious activities only. Similarly, assistance by the respondent-trust to the needy and poor for religious activities would not divest the trust of it....
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....the activities were. carried out only for such purposes would be entering in the realm of granting exemptions in terms of Section 13 of the Act, which would be; the task of the Assessing Officer to be undertaken at the time of assessment on the basis of material that may be brought on record." 7. In the result, in view of the above observations, the matter is restored to the file of CIT (exemptions), for de novo consideration, after giving due opportunity of being heard and with the direction not to disentitle the assessee for grant of registration only on the grounds as mentioned in its order passed for rejecting the application filed by the assessee trust for grant of registration under section 12A of the Act. 4. Learned Senior Standing Counsel Mr.Aman Mir, tried to distinguish the decision of this Court in the case of Bayath Kutchhi Dasha Oswal Jain Mahajan Trust (supra), by referring to the aims and objectives of the respondent-society, more particularly objects b, k, m and q which are to promote and protect the interest of members through appropriate measures conducive to the orderly and healthy growth of real estate development and allied activities, to set up Nat....
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....uck owners are in the nature of staff welfare activities, as are common in other bus/ ness organizations which cannot be termed for general public utility." 10. Therefore, as the aforesaid objects are for the benefit/ welfare/ interest of the members of the association i.e. members of National Real Estate Development Council Gujarat and not for the benefit of the public at large. Therefore, I am not satisfied about the genuineness of activities of trust and is of the considered opinion that the applicant/assessee is not eligible for registration u/s 12A of the Act Therefore in the facts and circumstances of the case, the applicant/ assessee cannot be granted registration u/s 12A of the Act. 11. In view of the above, the present application filed in Form No. 10AB u/s 12A(1)) (ac) (iii) of the Act is rejected and provisional registration stands cancelled." 6. Having heard the learned advocate for the appellant and having perused the Memorandum of Association of the respondent - Trust, which is a society registered under Societies Registration Act, 1860, it would be germane to refer to the aims and objectives of the respondent - Trust. The main objectives of the T....
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....nsactions relating to various operations of real estate business including building, construction and marketing and also suggest ways and means for improvement in ease of doing business. i. To prescribe criteria for categorisation of real estate developers, builders, market operators and brokers for facilitating advancement of their interests in planning and estate construction, estate finance, estate marketing and brokerage and other developmental aspects. j. To evolve criteria of real estate and construction industry and its various allied operations, and to formulate a Code of Ethics for observance by all real estate developers, builders and marketing operators, and to evolve a suitable ombudsman mechanism for investigating departures therefrom. k. To render expert advice to Members on statutes and regulations relating to various aspects of real estate development as well as building and marketing operations, including matters relating to taxation, licensing, industrial relations, import/export, corporate laws, urban development and environmental protection. l. To consider all questions connected with or effecting real estate and allied activi....
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....ooperate or contribute to the execution of community development and social welfare programs including bus shelters, drinking water sheds, night shelters and parks etc. v. To accept donations, gifts, or any financial assistance from any organisations and grants from the government. w. To determine and levy fees commensurate with service rendered, as may be fixed by the Governing Body from time to time, on no-profit basis. x. To borrow or raise money required for the purpose of the society upon such terms and in such manner as may be determined from time to time. y. To acquire, purchase, build or take on lease or on leave and license or hire any movable or immovable property or rights therein for its own use and to sell, mortgage for the purposes and/or activity of the society or otherwise dispose of all or any part of such property and rights. z. To subscribe, to become a member of or otherwise co-operate with other organisations whose objects are altogether or in part similar to those in this society. aa. To invest the monies of the society not immediately required in such securities as may from time to time be determined by go....