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2023 (2) TMI 300 - AT - Income TaxExemption u/s 11 - Rejection of Application for registration u/s 12AA - CIT-E noted violation of provision of section 13(1)(b) of the Act due to operation only for Christian community - HELD THAT:- The assessee-trust has filed application for registration u/s 12A of the Act. The object clause specifically mentioned that the trust is charitable in nature and the charity would be done without prejudice to any cast & creed. Primarily the object is never be barred by section 13(1)(b) of the Act. During registration of the trust the revenue authorities will verify the main object of the trust and the activities in relation to the main object of the trust. In second issues, revenue has not made any adverse comment on activity of the assessee-trust. But in the first issue the revenue authority has expressedthe grievance by rejection the application for registration. The ld. counsel for the assessee had fully relied order of M/S SAIN MIRAN BABA DARVESH GHULAM QUADIR TRUST [2022 (12) TMI 737 - ITAT AMRITSAR] wherein as well settled law that where the purpose of a Trust is help to poor, medical relief, and advancement of objects of general public benefit/utility at large, the requirement of definition of 'charitable purpose' would be satisfied even if an activity of profit is carried on in the course of actual carrying out of the primary purpose of the Trust or the Institution. If a Trust's claim for charitable purpose is covered under the head of 'advancement of any other object of general public utility'. The question would arise whether the purpose of Trust or Institution involves the carrying on of any activity of profit. However, it would not be relevant as in the present case of the assessee Trust where the objects of the Trust comprise of relief of the poor, education or medical relief, etc. The observation which was taken in referred case by the bench is same view for the assessee-trust. The main object is indicated properly that there is no violation of section 13(1)(b) - CIT-DR was not able to show any evidence against the submission of assessee during the hearing. Decided in favour of assessee.
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