TMI Blog2016 (9) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... hether in view of the above said objects the application moved by the trust is liable to be rejected or not. This controversy can be looked into at the time of assessment. It is liable to be considered whether the assessee is entitled for the exemption u/s.12A of the Act or not. In brief the allowability of the deduction u/s.11 and 12 of the Act is to be looked into by the Assessing Officer while completing the assessment in the hand of the assessee at the relevant time. The said violation of the trust if any on account of provision u/s.13(1)(b) of the Act are not required to be considered by the authority while granting registration u/s.12A of the Act. In view of the said circumstances we are of the view that the rejection of the applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust solely for charitable purposes. 3. The Director of Income Tax (Exemption) erred in holding that setting up nursing homes or family planning centers for needy members of society or providing mediclaim insurance will not fall in the head of medical relief so as to constitute charitable purpose and giving assistant to needy for residential accommodation etc., is housing finance activity which will not be covered under the charitable head of relief of poor because the needy may not necessarily be poor. 4. The Director of Income Tax (Exemption) erred in holding that the trust was partly for non-charitable / commercial objects. 5. The Director of Income Tax (Exemption) erred in holding that: a. Giving prizes to student ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the record. The learned representative has argued that the authority considered the object 1(b), 1(i), 3(a), 3(b), 3(e), 3(i) and 3(j) as commercial, therefore, the authority has rejected the present application. It is argued that the above said objects leads to the establishment of nursing home, family planning centres, provision of mediclaim insurance at subsidised rates, giving business advances to the needy for enabling them to be self reliable / employed, giving assistance to the needy towards their maintenance for wedding or providing residential accommodation, adoption of villages for development of rural areas, provision of accommodation and lodging and boarding facilities etc. which nowhere denotes the trade, commerce and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... embers of the society. 1(i). To provide mediclaim insurance at subsidized rates either in part or full. 3(a). To set up or give grant to Orphanages, old age home. 3(b). To give assistance to widows, orphans, aged, disabled, needy or handicapped for their educational and business advances for enabling them to be self reliable / employed. 3(e). To adopt villages for the development of the rural areas of the country. 3(i). To give prizes to the students of the Shri Vile Parle Ghoghari Visha Shrimali Jain Samaj, who have excelled in education as well as dharmik exams conducted in Mumbai. 3(j). To give prizes to the residents of Vile Parle in Mumbai and who belongs to Shri Vile Parle Ghoghari Visha Srimali Jain Samaj, for Tapas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - At the time of grant of registration, the powers of the CIT enshrined under section 12AA of the Act, provided that the CIT is to look into the objects of the Trust and the genuineness of its activities. Merely because, one of the objects of the Trust was for the benefit of upliftment of the Jain community as against the pre-dominant object of providing education by the Trust or the Institution, the issue arises whether the grant of registration under section 12AA of the Act could be denied to the assessee. We find no merit in the order of CIT in observing that the said benefit being provided to the Jain community would attract the provisions of section 13(1)(b) of the Act and the assessee therein would not be entitled to the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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