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TMI Blog2012 (2) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... in clarifications and such details were filed by the assessee. Ld. DIT(E) did not find the application satisfactory enough for granting registration under Section 12AA of the Act for two reasons. First was that one of the object clause of the assessee mentioned encouraging religious discourses. This, as per ld. DIT(E), made the objects of the Trust wholly or substantially wholly of a religious nature. Ld. DIT(E) also noted that clause 20 of the assessee-Trust enabled the Trust to levy fees on the apprentices or others benefiting from the institutions or establishments run by the Trust. According to him, this was a commercial activity. He, therefore, denied registration under Section 12AA of the Act. By the same order, he also denied the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the order of ld. DIT(E) and heard learned counsel from both sides. The object clauses of the assessee-Trust as appearing in paper-book pages 27 to 33 are reproduced hereunder:- (a) To carry on activities for the upliftment and development of tribal education, standard of living, healthcare, housing and availability of Nutritional food in the society. (b) To support the artistic and cultural development in the society. (c) To ensure better facilities for the new born children and the mother. (d) To protect the species like rare birds, insects. (e) To protect the cows. (f) To develop new Architectural design to construct the buildings based on sacred rules (codes) and sacred geometry. (g) To provide books/instruments etc to deserving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... courage music cultural programmes, religious discourses and encouraging cultural musicians to get the best out of them. (u) To entertain both classical and western music systems. 6. Ld. DIT(E) found clause (t) to be religious in nature. The said clause, is a part of a number of objects and it mentions encouragement of music and religious discourses and also encouragement of cultural musicians so as to get the best out of them. Among different object clauses numbering 21, this particular clause '(t)', a part of which mentioned encouragement of religious discourses could never, in our opinion, be considered as something that is wholly or substantially wholly of a religious nature. In first place, encouraging religious discourses without men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer to consider when he took up the assessment proceedings in the ordinary course of events. Act provides for revocation of the 12A registration in such contingencies. We cannot say that possibility of a future contingency with a remote probability will make the Trust itself a commercial venture. Relevant clause 20 of the Trust deed, enabling the trustees to levy fees from apprentices, in our opinion, will not convert the assessee-Trust to a commercial establishment. 8. We are thus of the opinion that both the reasons cited by ld. DIT(E) for denying registration to the assessee under Section 12AA of the Act were unjustified and not in accordance with law. We, therefore, quash the order of ld. DIT(E) and direct him to grant the assessee-Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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