TMI Blog2018 (10) TMI 2029X X X X Extracts X X X X X X X X Extracts X X X X ..... vertheless, have close connection and direct co-relation with primary object of scientific research. CBDT erred in rejecting the application of the Trust for approval for several reasons. Firstly, as noted, right from the year 1965 till about the year 1996, all successive applications of the petitioner Trust for approval were granted. It is not the case of the respondents that objects of the Trust underwent any material changes. In absence of any such change, there had to be strong reasons for the authorities to take a different view while entertaining the petitioner's fresh application for approval, particularly, when for years together, the authorities themselves had granted such approval. For close to 30 years based on the same objects the authorities granted the approval. Many years later they changed the opinion and believed that scientific research was not the sole object of the Trust. Further, the reasons, on which, the impugned order is passed are also not convincing. We are prepared to proceed on the basis that the requirement of the applicant having scientific research as a sole object as flowing from Rule 5D (1) of the Rules must be complied with. The question is, di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the economic development of the agriculturist, to undertake research and establish and run veterinary hospitals and laboratories and services etc. ARDA was approved under section 35(1)(ii) of the Act for the first time under a notification dated 15.04.1965. Such approval was granted time and again therefrom. In the year 1990 for one year and in the year 1993 for the period between 01.04.1991 to 31.03.1994 and so on. Lastly, under a notification dated 19.02.1996 said approval was granted for the period from 01.04.1995 to 31.03.1996. According to the petitioner, all subsequent applications for approval remained pending. They have neither been granted nor rejected by the authority. The petitioner, in the meantime, went on applying for such approval periodically. At one stage, when the petitioner's application was rejected by the CBDT, the petitioner filed Special Civil Application No. 2913 of 2009 which was disposed of by the Court on 04.08.2009 on the ground that the order of rejection was a non-speaking order and the authorities would be expected to pass fresh order taking into consideration material on record. 3. The petitioner had applied to CBDT on 26.03.2011 for renewal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x containing different proportion of vitamins and minerals on crossbreed Indian animals. This activity cannot be termed as scientific research. It was more in the nature of commercial activity. (iii) The research material provided by the petitioner in support of the claim did not indicate undertaking of any scientific research of empirical nature. 7. Counsel for the petitioner raised following contentions: (i) ARDA is engaged in sole activity of scientific research since several decades. It was because of this that the same was approved in the year 1965 under section 35(1)(ii) of the Act CBDT failed to examine the material on record in proper perspective. (ii) The objects of the Trust are clear so were the activities undertaken by ARDA. The objects cannot be seen in isolation and any object in the nature of subsidiary or ancillary to the main object of research cannot be construed in isolation to hold that scientific research was not the sole object of the trust. 8. Rule 5D of the Rules prescribes procedure for approval. The condition of scientific research being the sole object contained in such Rule cannot be implemented with rigidity. This condition does not form part of the mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd other related problems to undertake directly and/or to arrange by subsidizing to print, publish and circulate any research work that the ARDA may think desirable for promotion of its objects. It also includes object of establishing laboratory, research institutions and ARDA may organize works and training camps and undertake all such activities for the benefit of the farmers. 13. These objects also include certain other objects such as to provide scholarship, grants, loans for training in the livestock husbandry, agriculture and allied fields; to provide grant and loan to village co-operative for building of milk collection centers etc.; to render technical, financial and other necessary assistance to co-operative organizations in the filed of livestock husbandry and agriculture and such other objects. 14. Perusal of these objects would show that the primary or the fundamental object of the Trust was to carry out research and development and extension work in the field of animal husbandry, livestock breeding and agriculture. Scientific research was thus the prime object of the Trust. Several objects enumerated in Clause 3 of the Memorandum were in furtherance of this main object ..... X X X X Extracts X X X X X X X X Extracts X X X X
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