TMI Blog2019 (8) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 (3) TMI 1519 - MADRAS HIGH COURT ) Hosanna Ministries Vs. ITO ( 2017 (3) TMI 1387 - MADRAS HIGH COURT ). We are of the view that the delay in filling the appeal is not deliberate or wanton, but due to bona fide circumstances set out above. We therefore condone the delay in filing the appeals. Registration u/s.12AA refused - author is property developer and trust deed also have clauses that Trustees had powers to sell and convert trust funds into any other property - HELD THAT:- None of the reasons given for refusing registration to the Assessee are acceptable. The objects of the Assessee are charitable in nature being solely for the purpose of education and all activities spring from and are to be read in conjunction with clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or charitable organization cannot claim the benefit of Sec.11 12. Thus, this appeal by the assessee is allowed. - ITA Nos.110 And 111/Bang/2019 - - - Dated:- 15-3-2019 - Shri N.V. Vasudevan, Judicial Member And Shri G. Manjunatha, Accountant Member For the Appellant : Shri S. Venkatram, CA For the Respondent : Shri C. Sundara Rao, CIT(DR) ORDER PER N.V. VASUDEVAN, JUDICIAL MEMBER ITA No.110/Bang/2019 ITA No.111/Bang2019 are two appeals by the Assessee against two orders both dated 28.9.2018 of CIT(Exemptions), Bangalore refusing approval u/s.80G(5)(vi) of the Income Tax Act, 1961 (Act) and registration u/s.12AA(1)(b)(ii) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore condone the delay in filing the appeals. 4. First we shall take up for consideration ITA No.111/Bang/2019, appeal of the Assessee against refusal of registration u/s.12AA of the Act. 5. The assessee is a Trust which came into existence pursuant to a registered Deed of Trust dated 21.2.2018 executed by M/s. Embassy Property Developments Private Limited. The main objects for which the Trust was created for the purpose of advancement of educational objects or purposes. Clause 2(b) of the Trust Deed provides that the Trustees at their discretion use the fund wholly or in part or parts on such public educational purposes including spiritual activities which are beyond any specific religion, research in huma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause has to be read in conjunction with the preamble in clause-3 of the trust deed which clearly lays down that the above activities were to be carried out in furtherance of the object of providing education. The CIT(E), in our view, has overlooked the fact that all activities spring from and are to be read in conjunction with clause 2 (b) of the Deed of Trust, which we have extracted in the earlier part of this order. 8. Another reason given by the CIT(E) for rejecting application of the Assessee for grant of registration u/s.12A of the Act was that clause 3 (v) of the trust deed permitted the Assessee to establish, promote any industrial and commercial activity with a condition that the proceeds from such activities shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charitable in nature being solely for the purpose of education and all activities spring from and are to be read in conjunction with clause 2 (b) of the Deed of Trust, which we have extracted in the earlier part of this order. There are sufficient safeguards in the Act in the event of the object not being carried out in accordance with the deed of trust or wherever there is personal benefit. There is nothing brought on record by the CIT(E) to show the objects of the Assessee are not charitable or that its activities are not genuine. In the circumstances, we are of the view that the Assessee ought to have been granted registration u/s.12AA of the Act. We direct that the registration u/s.12A being allowed to be Assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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