TMI Blog2014 (1) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... either with regard to the genuineness or the nature of activities of the trust - In such circumstances, it has to be presumed that DIT(E) has no doubt either with regard to the genuineness or nature of the activities of the trust - The denial of registration under section 12AA on the reasons mentioned by the DIT(E) are neither well founded nor justified in the given circumstances of the case - Decided in favour of assessee. - ITA.No.1203 & 1204/Hyd/2013 - - - Dated:- 17-1-2014 - Shri B. Ramakotaiah And Shri Saktijit Dey,JJ. For the Appellant : Shri A. V. Raghuram For the Respondent : Shri D. Sudhakar Rao ORDER Per Saktijit Dey, J. M. These appeals of the assessee are directed against the common order dated 31.05.2013 passed by the DIT(E), Hyderabad, refusing to grant registration under section 12AA and approval under section 80G(5)(vi) of the Act. 2. Briefly the facts are, the assessee stated to be a charitable trust was created by virtue of a trust deed dated 03.01.2012. The aims and objects of the trust as mentioned in article 5 of the trust deed are as under : 5. Aims and Objectives of the Institute : a) Whereas it is recognised by Internationally re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain the Institute's properties; o) The above (a to p) constitute the core aims and objectives of the Institute. In addition, the following projects/programmes/activities may be taken up under the banner of the Institute when and only when volunteers present themselves to plan, organize, fund and implement them, or in the situation where, the core objectives being served, sufficient funds are offered to cover salaries of professional managers. Such ancillary programmes shall not divert funds and manpower from the core activities. In any case, undertaking of any such ancillary activities shall be subject to the approval of the Chairman or Managing Director who is vested with the power to approve allocation of some of the Trust's land and / or building space for an activity if such land / building space is available. Ancillary programs / facilities that have been established may in time be incorporated as separate entities and the Director of the Institute shall be .the director of such entities and shall exclusively have the authority to nominate or approve nominees to the boards of entities so Incorporated. p) To establish living centers (ashrams) for members of the Institute, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA of the Act, is refused to the above trust. Consequently, the other application in Form No. 10G, seeking approval u/s.80G(5)(vi) of the Act, filed by the above trust, is also rejected." 4. Being aggrieved by the rejection order passed by the DIT(E), the assessee preferred an appeal before the ITAT, Hyderabad Benches. The ITAT disposed off the appeals registered as ITA.No.895 896/Hyd/2012 vide order dated 27.09.2012 set aside the order passed by the DIT(E) and directed him to only examine the genuineness of the activities of the trust and to see whether its activities fall within the purview of section 2(15) of the Act. The Tribunal further directed the DIT(E) to examine the decisions relied upon by the assessee. So far as approval u/s. 80G(5)(vi) is concerned, the ITAT opined that for granting approval under sec. 80G the DIT(E) can examine whether or not the conditions set out in section 80G(5)(i) to (v) are satisfied. In the process the ITAT also held that the reason for denial of registration under section 12AA approval under section 80G(5)(vi) by DIT(E) is not justified. 5. In the second innings before him, the DIT(E) asked the assessee to submit a note about the activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .R. No material has been brought on record to show that the assessee trust has carried out activities outside the country or has applied any fund to such activities outside the country. In this view of the matter, the reasoning of the DIT(E) is totally misplaced. Furthermore, the ITAT in its order dated 27.09.2012 disapproved such reasoning of the DIT(E) which is very much evident from the extracted portion of the order at pages 2 and 3 of the impugned order of the DIT(E). 7. So far as denial of registration on the ground of mixed objectives of charitable and religious nature is concerned, we do not find any restriction in the statutory provision which says that a trust having both religious and charitable objects would not be eligible for registration under section 12AA of the Act. In fact, section 11 of the Act provides for exemption to both charitable and religious trusts. Only restriction being put by the statute is exemption under section 11 is subject to fulfilment of conditions laid down in sections 11, 12 and 13 of the Act. So also is the view held by different benches of the Tribunal and High Courts. The decisions referred to by the DIT(E) no where say that a trust havin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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