TMI Blog2020 (2) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust Deed provided for development of new drugs / publication of journals etc., cannot per se amount to any business or trading activity on the part of the respondent Trust. These activities are prima facie incidental to the charitable activity of providing good health and medical relief to the affected persons. The learned Tribunal however has made it clear in its order that it is even otherwise open to the Revenue authorities under the provisions of the Act to consider the factual aspects of the matter as to whether the Trust is engaged in any business activity or not upon granting annual renewal of such registration under Section 12AA of the Act and therefore unless the Charitable Trust is found to be engaged in the business or trading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(g) speaks about printing, publishing and selling journals, periodicals, books etc., Object Clause 3.8(f) mentions about establishing financial institutions etc., and therefore the learned Commissioner felt that the Assessee Trust might itself engage in business activities and therefore not entitled to registration under Section 12AA of the Act. The Assessee preferred an appeal before the learned Income Tax Appellate Tribunal, which allowed the appeal of the Assessee with the following observations. 9. In view of the above order of the Tribunal, we further observe that whether the assessee foundation is contravening any provisions of the Act relating to charities is a matter to be considered subsequent to registration on application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aritable Purposes' and therefore, since the activities under the specified clauses of the Trust Deed were found to be in the nature of business, which the Assessee may engage and therefore, the learned Commissioner of Income Tax was justified in rejecting the registration under Section 12AA of the Act. He further submitted that the Revenue authority had a genuine apprehension about the intended business activity of the applicant Trust. 4. On the other hand, the learned counsel for the Assessee supported the impugned order of the learned Tribunal and urged that the Assessee is not engaged in any business activity and the Object Clause providing for Research and Development work for new medicines is part of their activity, which is c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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