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2021 (3) TMI 1062 - AT - Income TaxExemption u/s 11 - registration u/s 12AA denied - as per CIT-E since the objects of the assessee include both religious and charitable objects, registration u/sec. 12A cannot be granted to the assessee - HELD THAT:- As decided in Social Service Centre [2001 (2) TMI 69 - ANDHRA PRADESH HIGH COURT] if the primary or dominant purpose of an institution is charitable than any other object which by itself might not be charitable but just merely ancillary or incidental to the primary or dominant purpose, would not prevent the trust or institution from being a valid charity. While coming to the instant appeal, the observations and conclusion of the ld.CIT(E) having no strength of law. There is no bar for grant of registration to the Trust/Institution which is having mixed activities i.e. charitable and religious in nature as held by the ITAT, Hyderabad Bench in the case of Rehoboth Mission case [2010 (5) TMI 669 - ITAT HYDERABAD] and though we did not find any fault in the objects of the Assessee, however the Ld. CIT(E) is empowered and at liberty to restrict the activities of the trust in consonance with the objects only , hence on the aforesaid analyzations and respectfully following the judgment of the Hon'ble Jurisdictional High Court and Co-ordinate bench of the Tribunal, we are unable to substantiate the 1st ground for rejection of registration by the ld.CIT(E). Assessee –trust has been formed in the year 2015 and as seen from the Income & Expenditure account of the assessee filed for various years, the charitable activities carried out are either meagre or nil. Hence, it is premature to grant registration u/sec. 12A of the Act to the assessee - The Apex Court in the case of M/s. Ananda Social and Educational Trust [2020 (2) TMI 1293 - SUPREME COURT] reminded that carrying out of any activities is not a stipulation for grant of registration u/s 12A of the Act and even section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done and the term ‘activities’ in the provision includes ‘proposed activities’. There is no such bar as held and observed by the ld.CIT(E) that the charitable activities carried out by the Assessee are either meagre or nil, hence, it is premature to grant registration u/sec. 12A to the Assessee. In our considered view, 2nd ground of rejection is also contrary to the law as the law has not specified any earmark as such observed by the Ld.CIT(E), for grant of registration u/sec. 12A of the Act. Registration can be sought at the nascent stage and/or after carrying out any activities. Hence we are unable to sustain the 2nd ground of rejection as well. The order of the ld. CIT(A) is set aside and the Ld. CIT(E) is directed to grant the registration to the Assessee forthwith - Decided against revenue.
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