TMI Blog2021 (3) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... of the trust in consonance with the objects only , hence on the aforesaid analyzations and respectfully following the judgment of the Hon'ble Jurisdictional High Court and Co-ordinate bench of the Tribunal, we are unable to substantiate the 1st ground for rejection of registration by the ld.CIT(E). Assessee trust has been formed in the year 2015 and as seen from the Income Expenditure account of the assessee filed for various years, the charitable activities carried out are either meagre or nil. Hence, it is premature to grant registration u/sec. 12A of the Act to the assessee - The Apex Court in the case of M/s. Ananda Social and Educational Trust [ 2020 (2) TMI 1293 - SUPREME COURT ] reminded that carrying out of any activities is not a stipulation for grant of registration u/s 12A of the Act and even section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done and the term activities in the provision includes proposed activities . There is no such bar as held and observed by the ld.CIT(E) that the charitable activities carried out by the Assessee are either meagre or nil, hence, it is premature to grant registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medical, social benefit and development of the Community. As seen from the above, the objects include religious objects also. Registration u/s 12A is granted to any trust/society only if it is created wholly for charitable purpose or wholly for religious purpose, but not for both. Since the objects of the assessee include both religious and charitable objects, registration u/s 12A cannot be granted to the assessee. 4. Activities are meager: The assessee society has been formed in the year 2015. However, as seen from the Income Expenditure account of the assessee filed for various years, the charitable activities carried out are either meager or nil. Hence, it is premature to grant registration u/s. 12A to the assessee. 5. In view of all the above facts, I am of the view that the applicant is not fit for grant of registration u/s.12AA of the Act. Hence, the application in Form No. 10A filed by the above applicant is hereby rejected. 3. Feeling aggrieved, the Assessee is before us. 4. The Assessee is a charitable trust and having the following objects as claimed:- i) To create awareness and health and rural development in the villages ii) To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Centers and educate all the depressed people mentally, socially and economically to inculcate a sense of self respect, service and sacrifice; xx) To establish Computer Education Centers, Music Schools for unem-ployed youth from the lower caste communities on free of charges; xxi) To organize or work for any object of general good and welfare as determined by the trust. xxii) To establish Community Welfare centers, Physiotherapy and Rehabilitation Centers and granting the gifts for the construction of the community welfare centers Rehabilitation centers; xxiii) To acquire purchase, hire, exchange, sell or lease any movable or immovable property in furtherance of the objectives of the Trust; xxiv) To borrow or raise funds either by loan or otherwise against the security of any immovable property of the Trust in furtherance of the objects of the Trust; xxv) To raise donations, contributions of grants either from India or abroad from any person or persons to the attainment of the above objects of the Trust; xxiv) The objects of the Trust will not include objects involving the carrying on of any activity for profit within the meaning of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration u/s 12AA of the Act. A trust whose object is charitable as well as religious is not debarred from registration. Further, in the case of New Life in Christ Evangelistic Association v. CIT Others 246 ITR 532 (Mad), wherein it was held that for granting or refusing registration u/s 12A in relation to such trust, the only condition precedent is that an application for registration should be made in time and the accounts of the institute should be audited. No enquiry about objects of the trust can be made u/s 12A of the Act. We have gone through all the judgements cited by the learned counsel for the assessee. The facts of the case in the case considered by the Gujarat High Court squarely apply to the facts of the case on hand. The department has not brought any contrary decision to our notice. In our opinion, in the circumstances under consideration, the DIT(E) should not have rejected the application of the assessee for registration u/s 12AA of the Act on this reason. Commenting on the Honourable Gujarat High Court decision, the DIT(E) has observed that the Hon ble High Court has introduced a new concept known as charitable religious trust. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to the Trust/Institution which is having mixed activities i.e. charitable and religious in nature as held by the ITAT, Hyderabad Bench in the case of Rehoboth Mission case (supra), and though we did not find any fault in the objects of the Assessee, however the Ld. CIT(E) is empowered and at liberty to restrict the activities of the trust in consonance with the objects only , hence on the aforesaid analyzations and respectfully following the judgment of the Hon'ble Jurisdictional High Court and Co-ordinate bench of the Tribunal, we are unable to substantiate the 1st ground for rejection of registration by the ld.CIT(E). 6. 2nd Ground of rejection:- The ld.CIT(E) also observed that Assessee trust has been formed in the year 2015. However, as seen from the Income Expenditure account of the assessee filed for various years, the charitable activities carried out are either meagre or nil. Hence, it is premature to grant registration u/sec. 12A of the Act to the assessee. 6.1 Section 12A of the Act specifies that the provisions of sections 11 12 shall not apply in relation to the income of any trust or institution unless the person in receipt of the income has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... line with the objects of the Trust. 6.5 The Hon ble Apex Court in the aforesaid case reminded that carrying out of any activities is not a stipulation for grant of registration u/s 12A of the Act and even section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done and the term activities in the provision includes proposed activities . 6.6 On the aforesaid analyzations, there is no such bar as held and observed by the ld.CIT(E) that the charitable activities carried out by the Assessee are either meagre or nil, hence, it is premature to grant registration u/sec. 12A to the Assessee. In our considered view, 2nd ground of rejection is also contrary to the law as the law has not specified any earmark as such observed by the Ld.CIT(E), for grant of registration u/sec. 12A of the Act. Registration can be sought at the nascent stage and/or after carrying out any activities. Hence we are unable to sustain the 2nd ground of rejection as well. 6.7 On the aforesaid analyzations, the order of the ld. CIT(A) is set aside and the Ld. CIT(E) is directed to grant the registration to the Assessee forthwith, suffice to say that the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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