The Tax Publishers2020 TaxPub(DT) 5056 (Karn-HC)

INCOME TAX ACT, 1961

Section 12AA

It may be noted that if the object of the trust is partly religious and partly charitable, so long as no part of income or corpus is utilized for a purpose, which is not either charitable or religious, a trust is entitled to exemption under section 11(1)(a) of the Act and such a trust is entitled for registration under section 12AA of the Act.

Charitable trust - Registration under section 12AA - Assessee was having mixed objects, some of which were charitable and some of which were religious -

Assessee was engaged in religious as well as charitable activities and filed an application for registration under section 12AA before CIT(E). The aforesaid authority by an Order held that from perusal of the objects of the trust as mentioned in the trust deed, it was evident that object of the trust was religious as well as charitable and of any other object of general public utility under section 2(15). It was further held that under section 12AA read with sections 11, 12 and 13, a trust or institution can be registered only under two exclusive categories viz., wholly for charitable purposes or wholly for religious purposes and there was no third category. Since, trust had objects for religious purposes as well as charitable purposes, therefore, the same cannot be registered under section 12AA. Held: It may be noted that if the object of the trust is partly religious and partly charitable, so long as no part of income or corpus is utilized for a purpose, which is not either charitable or religious, a trust is entitled to exemption under section 11(1)(a) of the Act and such a trust is entitled for registration under section 12AA of the Act.

Relied: Ramchandra Shukla v. Shree Mahadeoji AIR 1970 SC 458, Fazlul Rabbi Pradhan v. State of W.B. AIR 1962 SC 1722, CIT (Central) v. Shervani Charitable Trust (2007) 164 Taxman 268 (All-HC) : 2007 TaxPub(DT) 489 (All-HC) and CIT v. Barkate Saifiyah Society (1995) 213 ITR 492 (Guj-HC) : 1995 TaxPub(DT) 203 (Guj-HC) and Sri Maramma Temple Seva Trust v. CIT (E) 2015 TaxPub(DT) 4374 (Bang-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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