TMI Blog2019 (4) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... nefits are meant for all sections across society and that they are not restricted only to Christian community and also only to the followers of “Hope Unlimited Church” and also to exclude the commercial activities intended to be carried out by the assessee and thereafter, seek registration u/s 12AA. As regards the objection of the CIT (E) that the assessee has filed the application manually instead of electronically as required by the CBDT vide Circular No.10/18, we direct the assessee to now file the application electronically and on such filing after the amendment of clauses, the CIT (E) shall consider the application afresh on merits. - Decided partly in favour of assessee for statistical purposes. - ITA No.2212/Hyd/2018 - - - Dated:- 5-4-2019 - Smt. P. Madhavi Devi, Judicial Member AND Shri S.Rifaur Rahman, Accountant Member For the Assessee : Shri Mohd. Afzal For the Revenue : Shri Y.V.S.T. Sai, DR ORDER PER SMT. P. MADHAVI DEVI, J.M. This is assessee s appeal against the order of the CIT (Exemptions), Hyderabad, dated 24.09.2018 rejecting the assessee s application for registration u/s 12AA of the Act. 2. Brief facts of the case are that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the provisions of section 13(1)(b) are not attracted to the assessee s case. In support of his contention that the Trust having mixed objects, can also be granted of registration u/s 12AA of the Act, he placed reliance upon the decision of the Hon'ble Supreme Court in the case of CIT vs. Dawoodi Bohra Jamat (Civil Appeal) Nos. 2492 to 2571/2014, dated 20.02.2014 reported in 43 Taxmann.com 243(S.C). On the second reason that the assessee is supposed to file the application electronically, the learned Counsel for the assessee submitted that the notification No.10/2018 dated 19.12.2018 was brought into the I.T. Rules, 2018 was published after April, 2018 and therefore, the assessee was not aware about the notification dated 19.2.2018 while filing form No.10A manually on 28.3.2018. He submitted that had the defect had been brought to the notice of the assessee during the course of proceedings before the CIT (E), the assessee would have filed the form electronically and therefore, pleaded that the same may be remitted to the CIT (E) for reconsideration. 4. The learned DR, on the other hand, supported the orders of the orders of the CIT (E) and also filed detailed written submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal were of the opinion that the assessee is entitled for registration, even if it had mixed objects, then the Tribunal should set aside the issue to the file of the CIT (E) examining whether the assessee s objectives were eligible for grant of registration and for this purpose, he placed reliance upon the decision of the Hon'ble Allahabad High Court in the case of Agarwal Saba (Supra). 5. Having regard to the rival contentions and the material on record, we find the following are the objectives of the assessee Trust as mentioned in its Trust Deed: a) To undertake the training, preaching, worshipping by the people, starting educational institutions, worshipping places, training centres, preaching centers, to spread and publish, print books of holy nature, and to run conference, training days, to print resources, and to raise the funds for such programs. b) To undertake printing of the Books, literature for free distribution to the public, and to undertake training programs for the requisite field staff in order to effectively carry out the objects of the trust. c) To impart a sense of values among the people at large and carry to them the message of opt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay seem to be conducive to the objects and to obtain and carry out, exercise and comply with any such arrangements, rights, privileges and concessions. s) To undertake, conduct and management of churches and other institutions belonging to other societies or trusts or individuals or Govt. (State or Central) for such purpose and on such terms and conditions as the trust may deem fit. t) To enter into and carry out arrangements for joint working or amalgamation of any other society or trust having similar and/or identical objectives to the objects of the Trust as the Trust may deem fit. u) For the advancement of any other object/ objects of general public utility which the Trustees may deem fit and proper . 6. From a literal reading of the above objects, it is noticed that the objects of the Trust are both charitable as well as religious. In the case of CIT vs. Dawoodi Bohra Jamat (Supra), it was held that the determination of nature of Trust as wholly religious or wholly charitable or both charitable and religious under the Act is not a question of fact but is a question which requires examination of legal effects of the proven facts and documents i.e. the lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility . The Hon'ble High Court found that the assessee is formed for starting telecasting and broadcasting of T.V./Radio programmes and hence, the Hon'ble High Court held that these are commercial activities and cannot be considered as activities for charitable purposes and therefore, denied registration u/s 12AA of the Act. 7. In the case before us, we find that there are objects which are for the particular religious community i.e. Christianity and particularly followers of Hope Unlimited Church are in clauses such as clauses (c); (g); (j) and (m). The other objects such as (a),(b), (d), (e), (f), (h), (i) and (l) are general in nature and are not limited to any particular community or religion and the activities mentioned therein are clearly charitable in nature. The objectives like (b) and (k) are commercial in nature. Therefore, it cannot be said that all the objectives of the assessee are charitable in nature or that the religious objects are both religious and charitable in nature. The assessee, therefore, has been held to be not eligible for registration u/s 12AA of the Act. In the case of CIT vs. Dawoodi Bohra Jamat, the Hon'ble Supreme Court has considere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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