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2019 (4) TMI 561

ts - charitable activity or not? - HELD THAT:- 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. - The assessee trust can modify its objectives clearly indicating that charitable benefits 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 object .....

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2014 and ought not to have refused registration u/s 12AA. 5. The learned Commissioner erred in saying that the application in Form No.10AA is filed manually, therefore, the assessee is not eligible for registration u/s 12AA without giving an opportunity in writing by issuing a defective notice to rectify the defect. 6. The applicant craves leave to add to, amend or modify the above grounds of appeal either before or at the time of hearing of the appeal, if it is considered necessary . 3. The learned Counsel for the assessee submitted that there is no dispute that the objects of the Trust are both religious and charitable but the same are not exclusively meant for any particular religious community, nor are they for the benefit of any particular community. Therefore, it was submitted that 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 .....

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igious purposes. He also 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) stating that in case of a Trust with religious and charitable activities, if the charitable activities are hit by section 13(1)(b), exemption is not permitted. He submitted that in the case of the assessee Trust, before us, the clauses (a), (b), (j) and (k) are both religious and charitable. He submitted that all the objects are apparently made for the benefit of group of Christian community and therefore, it is hit by section 13(1)(b) of the Act and therefore, the assessee is not entitled for registration u/s 12AA of the Act. He further submitted that if the 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 .....

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literature, journals, magazines, pamphlets, advertisements, reports and lectures and other reading material for the diffusion of useful knowledge and for promotion, benefit arid advancement of educational, cultural, social, scientific, technical, charitable and religious ideals of the Trust or cause to be published books, periodicals, journals etc., with a view to promote " education and learning among the people and to provide facilities for exchange of ideas among different people and particularly scholars in the different field of learning by organizing seminars, symposia, public lectures and otherwise. r) To enter into arrangements with any Government or authority whether Union, State, Municipal, Local or otherwise that may 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 a .....

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ntary evidence had been produced to support that the Trust had carried out any activity of general public utility such as establishment of hospitals, etc., and therefore, the application u/s 12A was dismissed . In the case of Tellichery Minority Welfare Trust vs. CIT (Supra), the Hon'ble Kerala High Court held that the said Trust was for the benefit of a particular religious minority and therefore, was not entitled to registration u/s 12AA of the Act . In the case of CIT vs. A.Y. Broadcast Foundation (Supra), the Hon'ble Kerala High Court considered that the assessee company was registered u/s 12AA of the Act and that it claimed to be formed for the purpose of advancement of objects of general public utility . 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 foll .....

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