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2018 (2) TMI 42 - AT - Income TaxRegistration u/s 12A refused - proof of charitable activities - relinquished of function as the primary implementation of the agencies - Held that:- In the instant case, there is clause No.(v) in the trust deed which specifying that any donation received “shall be spent/applied by the trust as per the objects of the trust, donation trust corpus of the trust shall be applied in accordance with specific directions from the donor.” Further in clause (vi) specifies that any donation or contribution received from Ludhiana Beverage Pvt. Ltd or from any other company in pursuance of their Corporate Social Responsibility shall be spent/applied by the trust as per directions of the donor. These clauses in the trust deed are clearly seems to keep the trust by the settler etc. Ludhiana Beverage Pvt. Ltd. in its own domain. The directions shall however fall within the purview of the objects of the trust. Further from the trust deed it reflects that settler and the trustees are almost family members having no participation of the public which also not sync with the Corporate Social Responsibility project and in addition to that except giving donation to the tune of ₹ 40,000 and 30,000/- to the Govt. Schools out of ₹ 11,00,000/-, the applicant trust has not carried out any activities till passing of the impugned order even otherwise till disposal of this appeal. We are in agreement with the CIT(E) that activity so far clearly shows that the trust has relinquished its function as the primary implementation of the agencies and undertaking its own programmes to impact targeted beneficiaries by transferring its funds to other societies and it is also militates against the legal principal that the social enterprises cannot be a direct recipient of money from a corporate as it is a profit making company and it is also clear that the composition of the trust is restrictive in nature and to that extent not amenable to the public charity. Thus the Ld. CIT(A) has gone into the genuineness of the activities of the society and made necessary enquiries and after non-satisfying about the genuineness of the activities rightly passed an order refusing the registration to the applicant society. - Decided in favour of revenue
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