TMI Blog2013 (4) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... 92 having one main-trustee and five other trustees. Later on, vide Resolution dated 01.03.1997 the number of other trustees was increased to seven, apart from the Chief Patron (i.e. the main-trustee). The aims and objects of the Trust have also been enlarged through this Resolution. A registration of this Trust from the Registrar of Societies, was obtained after five years of the Constitution on 01.08.1997. 3. The Trust was granted exemption u/s 80G(5) vide order dated 11.2.2005 upto A.Y. 2007-08. Fresh application was filed for exemption u/s 80G on 23.03.2011 after a gap involving of A.Y.s 2008-09, 2009-10 and 2010-11. The ld. Commissioner with a view to satisfy himself regarding the fulfillment of requisite conditions of s.80G(5) of the Act, issued a questionnaire dated 01.09.2011 to the applicant-trust. The assessee explained that it is working for the achievement of its aims and objects which are necessarily charitable in nature, as these are as under : (a) To propagate the message, teaching, ideals and philosophy of all the religious and spiritual reformers, prophets and leading figures of the world including Sikh Gurus with special emphasis on vegetarians. 4. After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In fact, on a reading of the said object of the Trust, it transpires that the Trust has amongst its objects to propagate the message, teachings, ideals and philosophy of all the religious and spiritual reformers, prophets and leading figures of the world and is not confined to either any one religion or different religions or for that matter the religious leaders. In fact, the reference to the religious leaders is in the category of the spiritual reformers and leading figures of the world and the said object cannot be assumed to be religious in any manner. 3. That on the facts and in the circumstances of the case and in law, the Ld. CIT has misapplied the law in this regard and has relied upon various judgments quoted by him in the order are totally out of place. He has failed to take notice of the fact that in all those judgments the courts have made an endeavour to find out as to whether the activities of the Trust are religious or not which are covered by Explanation 3. He has not correctly appreciated the fact that in the present case the clause being relied upon by him is materially different from the clauses mentioned in the said judgments. The order of the Ld. CIT to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted for the following reasons: (a) That as per the existing law, the charge or alteration in the Trust can be done to the Memorandum of association signed by the Trustees and no amendment in this regard is to be filed and endorsed by the Sub-Registrar's Office. (b) That the Ld. CIT has not considered that the Trust in question is duly registered with the Registrar of Firms and Societies under Registration No. 675 of 1997-98. All the formalities with regard to formation of the Trust are duly fulfilled and on the basis of that, the Trust has been registered by the concerned authorities. It is not for the Income Tax Department to point out the defects in constitution of the Trust as under the concerned law, the Trust has been found to be duly constituted. (c) The defects pointed out by the Ld. CIT are only procedural in nature and do not have the effect of taking away the essence of the Trust being for a charitable purpose which is very much eligible for exemption under Section 80G(5). (d) The Ld. CIT was also wrong in holding that Trust was not constituted properly while passing the order for exemption for assessment years 2008- 09 and 2010-11 on the basis of an amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire record. The section 80G(5) of the Act, alongwith its Explanation-3 read as under: 80G(5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :- [(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (23AA)] [or clause (23C)] of section 10 : Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if- (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anted approval u/s 80G(5) initially and after the expiry of that period of approval and after revision in the constitution of Trust by way of enlargement of two more trustees and increase in its objects, and after getting registered under the Society s Act, it has applied for renewal/grant of approval u/s 80G of the Act. In so far as the change by increase of its trustees by way of Resolution is concerned, it does not have much effect on its registration in so far as its objects continue to be charitable in nature. The added aim/object of this Trust, incorporated in the above portion of this order, does not seem to be wholly or substantially a religious one. It speaks of propagating the good teachings with a emphasis on teaching benefit of vegetarian food based on teachings of all religious icons including Sikh Gurus, is definitely a public charitable purpose in the changed scenario of the public-pattern. S. 2(15) of the Act defines charitable purpose which includes : i) relief of the poor, ii) education, medical relief iii) preservation of environment including waterheads, forest and wild, life, iv) preservation of monuments or places or objects of artistic or his ..... X X X X Extracts X X X X X X X X Extracts X X X X
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