TMI Blog2013 (5) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... do it. The receipt and expenses do not belong to the trust. The trust is a mere paper trust. 2.1 The assessee trust was created on 17-11-2005 as registered with the Asstt. Commissioner, Devsthan Vibhag, Jaipur with the objects of education, medical relief, relief to poor and other objects of general public utility. The assessee filed an application in the form No.10A for seeking registration u/s 12AA of the I.T. Act on 30-03-2012. The ld. CIT called for a report from the concerned AO on the application of the assessee. The AO submitted his report and submitted that the main objects as per trust deed are to establish education institution and their operation, to provide scholarship in the field of education etc. The AO reported that some further objects were added to the objects mentioned in the trust deed by way of passing a Resolution on 15-04-2008 which includes takeover of temples, to maintain the temple worship, pooja, festivals according to sampradaya to which the temple belong to. Thus the AO observed that the trust is not doing any activity as described in the trust deed. The assessee trust is making expenditure on operation of temple which is not an object as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the amendment in the object of the trust are as per the provision of Rajasthan Public Trust Act, 1959. The ld. AR submitted that when the assessee trust is registered with Rajasthan Public Trust then this fact itself shows that the assessee trust is a public trust and not a private trust. He relied on the decision of Hon'ble Rajasthan High Court in the case of CIT vs. Paramhans Ashram Trust, 203 ITR 711 and submitted that the Hon'ble High Court has made out distinction between the public trust and private trust on the basis of beneficial interest vested in the assessee's case. The objects of the trust are for the benefit of the public at large and not for any individual or the group of individual. Therefore, the assessee trust is a public charitable trust. He further submitted that the activities which were carried out by the assessee in the maintenance of temples is as per the amended objects of the assessee trust and therefore, there is no violation of provisions of Section 13(1)(b) of the Act. He relied on the decision of Hon'ble Apex Court in the case of CIT vs. Kamla Town Trust, 217 ITR 699 and submitted that Hon'ble Supreme Court has held that Civ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at as per the trust deed, the objects of the trust are as under:- A Education This includes to establish, maintain, develop, improve, extend educational institutions and provide scholarship, medals prizes etc. B Medical Relief This includes to establish, maintain, develop, improve, extend medical institutions. C Relief of the poor This includes to assist and provide for the poor by constructing community halls, rest houses etc and to give food, clothing and cash grant to the poor. D General Public Utility- This includes- (i) Free distribution of food to the general public (ii) To economically uplift of the poorer and weaker section of the society. (iii) To promote fine arts. (iv) To establish, run, aid community and public halls. (v) To Foster and promote the cultural unity and national integrity of India. (vi) To promote sustain and support various school of philosophy, Indian Culture. (vii) To promote moral, social and cultural values. (viii) To teach a simpler and more natural way of life. Thereafter, certain other objects were added vide resolution passed in the meeting of the Board of trustees held on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such trust; (v) The mode of succession to the office of the trustee of such trust (vi) the origin, nature and object of such trust; (vii) the amount of gross average annual income and expenditure of such trust; and (viii) the correctness or otherwise of any other particulars furnished under sub-section (4) of Section 17. (2) The Assistant Commissioner shall give in the prescribed manner public notice of the inquiry proposed to be made under sub-section (1) and invite all persons having interest in the public trust under inquiry to prefer within sixty days objects, if any, in respect of such trust. 2.6 Thus it is clear that the registration of public trust is made under the provision Rajasthan Public Trust Act, 1959 after conducting proper enquiry to ascertain the existence of public trust, its property, particulars of working trustee, the origin, nature and object of the such trust, apart from other requirements. Once the trust is registered and entries are made in the register as per Section 21 then the changes occurs in any of the entries recorded in the register are also required to be duly recorded in the register as per Section 23 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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