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Charitable purpose u/s 2(15) - livestock - whether livestock does not come under the definition of charitable purpose. - refusal to grant registration u/s 12AA - Violation u/s 11 - Commissioner of Income-tax considered the application under the provisions of section 2(15) - when he sought to correlate the income generated whether was from business activities or from charitable activities and came to conclude that maintenance of livestock does not come under the definition of "charitable purpose" and also does not come within the meaning of any other objectives of general public utility as regular business of selling of milk for maintenance of "goshala" is being carried on by the assessee-trust, and holding so he again denied to give registration to the assessee under section 12A

Held that:- charitable activities may have bent up profit making activities but is incidental to the activities carried out in so far as it has also been held that a cow renders income to the trust which Goshala is maintained by the trust. It is immaterial that the trust has been formed on the basis of transferring of the assets of the proprietorship concern which as per the trust deed has been given free of cost to the trust as part of the charity by the trustees themselves.

A corpus therefore was formed on the basis of the assets rendered to the trust by the sole proprietorship which has to be assessed in accordance with the provisions of the Income-tax Act by the Assessing Officer and in no way interfered with the granting of registration to the assessee-trust by the learned Commissioner of Income-tax.

Even the learned Departmental representative has not been able to establish that a violation of section 11, which was not the issue for consideration by the learned Commissioner of Income-tax for granting registration under section 12AA has been made. - registration u/s 12AA to be allowed - decided in favor of assessee.





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