RITHWIK FOUNDATION FOR PERFORMING ARTS ,MUMBAI vs. THE COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

ORDER \n\nPER PRABHASH SHANKAR [A.Μ.] :-\nThe present appeal is filed by the assessee against the order\npassed by the Learned Commissioner of Income-tax (Exemptions),\nMumbai [hereinafter referred to as “CIT(E)"] pertaining to order passed\nu/s.80G of the Income-tax Act, 1961 [hereinafter referred to as “Act”].\n\nPage 2\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n2. The grounds of appeal are as under:\n\n1. The learned Commissioner of Income Tax (Exemption) [‘CIT(E)'] has\nerred in rejecting the application filed by the Appellant (in Form 10AB)\nfor grant of approval under section 80G(5) of the Income Tax Act, 1961\n(hereinafter referred as ‘the Act'].\n\n2. The learned CIT(E), based on various inferences and reasons as\nsummarised in Annexure 8, has erred in holding that the Appellant\nintends to utilize funds/incur expenditure outside India and\nconsequently, the Appellant violates the provisions of section 11 of the\nAct.\n\n3. The learned CIT(E) has erred in passing the impugned order without\ngranting effective opportunity of hearing to the Appellant.\n\n3. Facts of the case are that the assessee company is registered\nas a Non-profit organization under section 8 of the Companies Act,\n2013. The main objects of the assessee company are stated to be\npromotion western classical, semi classical music and classical dance in\nall formats and to carry on the social and economic development of\nmusicians all over the country .The assessee was granted registration\nunder section 12A of the Act on 17.02.2020. With the introduction of the\nnew regime mandating re-registration of all charitable organizations, it\nduly applied for registration under section 12AB of the Act and the same\nwas granted to it 31.

8. 2021 is valid for the period A.Y. 2022-23 to A.Y.\n2026-27.\n\n4. According to the impugned order, the assessee company filed\nan application in Form no. 10AB seeking registration under section\n\nPage 3\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n80G(5) of the Act on 09.12.2024.The ld. CIT(E) denied the registration\nof the assessee company on the ground that the assessee company had\ncertain objects in its memorandum, which enabled it to incur\nexpenditure outside India and the same was stated to be in violation of\nsection 11 of the Act. The referred two objects of memorandum of objects\nviz.\n\ni. clauses 3(b)(20) which empowers the assessee company to\nenter into arbitration in and outside India, and\nii. clause 3(b)(27) which empowers the assessee company to\nenter into any arrangement with government or authority,\nCentral, State, Municipal, local or otherwise.\n\n5. Aggrieved, the present appeal has been filed challenging\nthe denial of registration under section 80G(5) of the Act. Before us, the\nld.AR has made detailed oral and written submissions contending that\nthe object of the assessee nowhere suggests any intention to apply its\nincome outside India. On the contrary, clause 4 of the memorandum of\nobjects clearly states that the objects of the company extend to the whole\nof Indiawhichimplies that even if the assessee incurs any expenditure\noutside India, the charitable activity would be restricted in India by\nvirtue of the said clause. In respect of the clause 3(b)(20) regarding\narbitration in or any place outside India, it is submitted that merely\nbecause the assessee is empowered to refer arbitration matter outside\n\nPage 4\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\nIndia, for the purpose of settling any legal dispute, it cannot be inferred\nthat the assessee intends to apply its income outside India. The assessee\nis engaged in charitable activities relating to art, music, and dance,\nwhere risks of copyright disputes and intellectual property rights\ninfringements are always present. Thus, as a matter of prudence and in\nsome sense a compulsion, the assessee has been empowered to refer\ndispute to arbitration. It is submitted that in a given case, reference to\narbitration may not lead to expenditure outside India or at best, the\nexpenditure can be classified as incidental expenditure outside India for\nthe purpose achieving the main objectives of the assessee in India. In the\npresent era of globalization, incidental expenses incurred outside India\nfor protecting and furthering the primary charitable purposes in India\ncannot, in law and in practice, be treated as application of income\noutside India within the meaning of section 11 of the Act. In this regard,\nreliance is placed on the decision of the Delhi Bench of the Hon'ble\nTribunal in the case of DDIT(E) v. The Associated Chambers of\nCommerce and Industry of India (ITA no. 6525/Mum/2013),\nwherein, it has been held that foreign travel expenditure incurred for the\npromotion of the trade and industry in India cannot be held to be\nviolative of section 11 of the Act.\n\nPage 5\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n5.1 With regard to the Clause 3(b)(27), whereby, according to\nCIT(E), assessee may utilize funds outside India by entering into\narrangements with governments outside India. It is submitted that the\nterm 'otherwise' as used in the above clause cannot be stretched to such\nan extent as to interpret that the assessee intends to engage with any\ngovernment or authority outside India or apply its funds outside India.\nThe real intention behind the clause is simply to provide the assessee\nwith a flexibility to engage with agencies or bodies which, while not\nexpressly falling within the categories of Central, State, Municipal, or\nLocal Government, nevertheless function as governmental or quasi-\ngovernmental authorities within India.\n\n5.2 The ld.AR has further pleaded that the assessee has not\nincurred any expenditure outside India. The financial statements of the\nassessee clearly demonstrate that all income has been applied in India\ntowards its charitable objects. Therefore, the apprehension of the CIT(E)\nis purely hypothetical and not supported by any actual conduct of the\nassessee. Moreover, incurring of merely incidental expenditure outside\nIndiadoes not violate provision of section 11(1) of the Act and what is\nintended to beprohibited is carrying on of charitable activity outside\nIndia. In the present case, admittedly, the charitable activities are\ncarried out in India.\n\nPage 6\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n5.3 Without prejudice to the above and in the alternate, it is\nsubmitted that section 11 of the Act does not absolutely bar the assessee\nto incur any expenditure outside India. In this regard, reliance is placed\non the decision of the Hon'ble Delhi High Court in the case of M. K.\nNambyar SAARC Law Charitable Trust v. Union of India (269 ITR\n556) (PBP 73), wherein, it has been held that (i) for the purpose of\nregistration under section 12A of the Act, section 11 is not a valid criteria\nto deny registration and (ii) even otherwise, section 11 allows the\nassessee to incur expenditure outside India after obtaining necessary\napproval from the Board.\n\n6. The ld.CIT(DR) on the other hand, placed reliance on the\nimpugned order claiming inter alia that in view of drastic changes\nbrought about in the provisions relating to trust vide Finance Act 2022\nand more specifically the concept of 'specified violation' under section\n12AB (4) and (5) of the Act, the authority concerned by virtue of\nexplanation (g), the CIT(E) is empowered not only to scrutinize the\ngenuniness of activities but also to examine whether the very objects of\nthe assessee are in consonance with provisions of the Act ie. section 11 of\nthe Act. Thus, according to him utilization of funds outside India shall\nfall in the definition of 'specified violation'. In this regard, he placed\nreliance on the order of Mumbai Bench of the Hon'ble Tribunal in the\n\nPage 7\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\ncase of Sila for Change Foundation v. CIT(E) (ITA no. 4274-\n75/Mum/2024 and Hemlata Charities v. CIT(E) inITA no.\n6344/Mum/2024.\n\n6.1 The ld.AR in the rejoinder, has contested the contentions of\nthe ld.CIT(DR) stating that the provisions of section 12AB govern the\nregistration of trusts and institutions for the purpose of claiming\nexemption under section 11 and 12 of the Act. In the present case,\nhowever, the assessee has not applied for registration under section\n12AB, but applied for approval under section 80G(5) of the Act. The two\nprovisions operate in distinct fields, and therefore, the conditions\nprescribed under section 80G(5) alone are relevant for consideration of\nthe assessee's present application. The assessee enjoys registration\nunder section 12AB of the Act. The CIT(E) has not raised any objection\nnor initiated any proceedings for cancellation of such registration till\ndate. This clearly implies that there is no specified violation as\ncontemplated under section 12AB (4) and (5) of the Act. It is further\nsubmitted that the cited decision of Sila for Change Foundation\n(supra)is not applicable to the facts of the case as the main activity of\nthe assessee was development services to another organisation in India\nand outside India. In the present case, the main activity of the assessee\nis confined to India only. It is only in a situation where some litigation is\n\nPage 8\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\nfaced by the assessee, it has to be pursued. In the process, the cost may\nor may not be incurred outside India. Therefore, there is no specified\nviolation. The assessee relies upon the order of Mumbai Bench of the\nHon'ble Tribunal in the case of Dedhia Music Foundation v. CIT(E)\n(ITA no. 743-744/Mum/2025 whichthe Hon'ble Tribunal has\nconsidered the above issue specifically. It is also contended that the\nHon'ble Gujarat High Court in the case of N. N. Desai Charitable Trust\n(246 ITR 452) (PBP 83) has held that the compliance to section 11 and\n12 are not the subject-matter of examination while considering the\napplication for registration under section 80G(5) of the Act in spite of\nthe fact that section 80G(5)(i) of the Act talks about the eligibility of\nincome of the assessee under section 11 of the Act. The said decision\n(supra) has been subsequently followed by the Hon'ble Gujarat High\nCourt in the case of Orpat Charitable Trust v. CIT (256 ITR 690).\n\n7. We have carefully considered all relevant facts of the case as\nalso rival contentions.Having gone through the contents of the order\nof the coordinate bench in Dedhia Music Foundation (supra), we find\nthat in the impugned order the ld.CIT(E) rejected the application\nfor registration u/s 12AB on similar object clause in existence in the\napplication.Relevant parts of the order are extracted as under for the\nsake of clarity and brevity:\n\n\"11. As is evident from the above, the section lists various activities which qualify as\ncharitable purpose but there is no restriction to the scope of such activities within the\ngeographical boundary of India. It is only section 11, as reproduced above, which places a\ngeographical restriction allowing exemption only to incomes applied to charitable purposes in\nIndia. But even the said section does not completely rule out exemption to incomes applied\noutside India for charitable purposes, granting exemption to certain such applications, as\nmentioned in section 11(1)(c), subject to being approved by the Board.\n\n12. As is evident from the above, in the scheme of the Act, incomes applied outside India for\ncharitable purposes are not completely and categorically ruled out from being eligible for grant\nexemption.\n\n13. The Ld. Pr. CIT's order in the present case, therefore denying registration to the applicant\nassessee merely for the reason that its objects included application of income outside India, we\nhold, is not in accordance with law. More particularly when, admittedly, this was not the sole\nand main object of the applicant assessee, but only its ancillary and incidental object. It is not\nthe case therefore that there is to be no application of income within India at all as per the\nobjects. In fact the main object of the applicant assessee involves carrying out charitable\nactivities in India. In this factual situation, denying registration u/s 12AA of the Act, for the\nreason that its incidental object entailed application of income outside India, we find, would\nresult in the assessee being denied exemption to income applied in India, which it would\notherwise be entitled to under law.\n\n14. Further as rightly pointed out by the Ld. Counsel for the assessee, the provisions of section\n11(1)(c) of the Act, which the Ld.CIT(E) has relied upon for holding that only activities\ncarried out in India will qualify as charitable for grant of registration, is only for the purpose of\ndetermining the income which qualifies for exemption u/s 11 of the Act. The said section\ncomes into operation only once registration is granted u/s 12A of the Act and therefore cannot\nbe relevant for the purposes of granting registration u/s 12A of the Act. The scheme of the Act\nis that all entities carrying out charitable activities, as defined in section 2(15) of the Act,\nqualify to be registered as charitable entities subject to satisfaction of the concerned officer\nvis-a-vis their objects and activities, but the exemption is provided/restricted only to the extent\nof income which is applied for charitable purpose in India.\n\n15. The issue we find, is squarely covered in favour of the assessee by the decisions relied\nupon by the Ld. Counsel for the assessee before us. In the case of MK Nambyar SAARC\nLaw Charitable Trust (supra), we find, the application for grant of registration was rejected\non the ground that the applicant itself had admitted that the scholarship could be paid to\nmembers even outside India. The Hon'ble High Court held that the application of income\noutside India is not a relevant criteria for rejecting the application for grant of registration u/s\n12AA of the Act and the officer has to only restrict himself to the satisfaction about the objects\nand genuineness of the activities of the trust while granting registration with no restriction on\nthe activities being carried out inside or outside India. The relevant findings of the Hon'ble\nHigh Court is as under:\n\n'The judgment of the court was delivered by B.C. Patel C.J. - M.K. Nambyar SAARC Law\nCharitable Trust has filed this petition against the order made by the Director of Income-tax\n(Exemptions) New Delhi, on February 24, 2004. The aforesaid trust submitted two\napplications in Form No. 10A for registration under section 12A and recognition under section\n80G of the Income-tax Act, 1961 (hereinafter referred to as \"the Act\"). The application was\nrejected on the ground that the applicant itself has admitted that the scholarships can be paid to\nthe members even outside India. It is in view of this admission that the activities will be\nextended outside India as per the objects laid down, it was held that the registration cannot be\n\nPage 10\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\ngranted under section 12A of the Act and the approval of exemption under section 80G also\ncannot be granted. Section 11 of the Act refers to income from property held for charitable or\nreligious purposes. The relevant provisions are reproduced hereunder:\n\n\"11. (1) Subject to the provisions of sections 60 to 63, the following income shall not be\nincluded in the total income of the previous year of the person in receipt of the income-\n\n(a) income derived from property held under trust wholly for charitable or religious purposes,\nto the extent to which such income is applied to such purposes in India; and, where any such\nincome is accumulated or set apart for application to such purposes in India, to the extent to\nwhich the income so accumulated or set apart is not in excess of fifteen per cent, of the income\nfrom such property; . ..\n\n(b)******\n\n(c )income derived from property held under trust-- (i)created on or after the 1st day of April,\n1952, for a charitable purpose which tends to promote international welfare in which India is\ninterested, to the extent to which such income is applied to such purposes outside India, and (ii\n)for charitable or religious purposes, created before the 1st day of April, 1952, to the extent to\nwhich such income is applied to such purposes outside India ;\n\nProvided that the Board, by general or special order, has directed in either case that it shall not\nbe included in the total income of the person in receipt of such income;\n\n(d)******\n\n3. So far as the benefit of section 11(1)(a) is concerned, it can be extended only to the extent to\nwhich such income is applied to such purposes in India. However, if the income is applied to\nthe purposes outside India, then clause (c) will be applicable and if the permission is granted\nby the Board either by general or special order then, benefit can be extended. Section\n12AA prescribes the procedure for registration. Reading the section, it becomes clear that after\nthe application is made, the officer has to call for documents or information from the Trust to\nsatisfy himself about the genuineness of the activities of the Trust. He can make further\nenquiry as he may deem necessary. It is only after satisfying himself about the objects of the\nTrust and the genuineness of its activities that he has to pass an order in writing registering the\nTrust or institution. And if he is not satisfied, he can reject the same. This section does not\nrefer to the activities in India or outside India. It refers to application of income for charitable\nor religious purposes in India as also with direction or order of the Board for application of\nincome as aforesaid outside India. Reading the order dated 24-2-2004, it is very clear that there\nis non-application of mind. It was necessary for the Commissioner to examine the purpose for\nsatisfying himself that the activities are genuine. It was open for him to make necessary\nenquiries in this behalf and to pass an order as per the procedure laid down under section\n12AA of the said Act. So far as income which is applied outside India is concerned, is not a\nrelevant criteria for rejecting the application. In absence of order under section 11(1)(a)( c),\none cannot seek benefit for application of income for charitable or religious purposes, outside\nIndia. Therefore, the order dated 24-2-2004 made by the Director of Income-tax (Exemptions),\nAnnexed at page 32 which is based on irrelevant criteria is quashed and set aside with a\ndirection to consider the application strictly in accordance with law. It is made that even\napplication under section 80G is required to be considered afresh. It is directed that the\napplication shall be disposed of within a period of four weeks by the Commissioner.\n\nPage 11\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n16. The aforesaid decision of the Hon'ble Delhi High Court has been followed by the\nCoordinate Benches of the Tribunal in the case of National Informatics Centre Services Inc.\n(supra) ([2017] 88 taxmann.com 878 (Delhi))\n\n17. In view of the above, the order passed by the Ld. CIT(E) denying registration u/s 12A of\nthe Act is set aside and the Ld.CIT(E) is directed to grant registration as applied for by the\nassessee.\n\n18. In the result, the appeal of the assessee is allowed.\"\n\n6. We may examine whether the ratio of above said decision would also apply to the\napplications processed by Ld CIT(E) under new provisions of sec.12AB of the Act. Under the\nprovisions of sec.11 to 13 of the Act, which are applicable to charitable trusts or institution,\ntwo authorities are involved, viz.,\n\n(a) the Ld PCIT or CIT is empowered to grant or cancel registration u/s 12A, 12AA or 12AB\nas the case may be.\n\n(b) the assessing officer is the authority who assesses the total income of the charitable trust or\ninstitution for every assessment year.\n\n7. We shall examine the provisions of sec. 12AB of the Act. The authority to grant\nregistration u/s 12AB is the Ld PCIT or CIT. Under sec, 12AB of the Act, the three steps have\nbeen prescribed for the process of registration or cancellation of charitable trusts or institution.\n\n(a) For new charitable trusts or institutions, provisional registration is granted u/s\n12AB(1)(c) of the Act for a period of 3 years from the assessment year for which the\nregistration is sought.\n\n(b) Permanent registration shall be granted u/s 12AB(1)(a)/12AB(1)(b) of the Act for a period\nof five years, when the charitable trusts or institutions apply for the same.\n\n(c) Where a provisional registration or permanent registration is granted u/s12AB(1) of the\nAct, the Ld PCIT/CIT is empowered u/s 12AB(4) of the Act to cancel the registration in\naccordance with that provisions.\n\n8. As noticed earlier, the assessing officer is the authority who is empowered to determine the\nincome of a charitable trust or institution and granting of exemption u/s 11 of the Act. As\nper sec.11(1), exemption u/s 11 is restricted \"to the extent to which such income is applied to\ncharitable purposes in India\". Thus the recognition of geographical jurisdiction wherein the\nincome was applied needs to be recognised or examined while computing total income of the\ncharitable trust or institution. We also noticed that the income applied for non- charitable\npurposes or applied outside India will not be exempt u/s 11 of the Act, i.e., such income shall\nbe taxable in India.\n\n9. We shall compare the provisions of sec.12AA and sec. 12AB of the Act which prescribe the\nconditions for granting registration.\n\n(A) SECTION 12AA:-\n\nPage 12\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n\"12AA [Procedure for registration.] (1) The Principal Commissioner or Commissioner, on\nreceipt of an application for registration of a trust or institution made under clause (a) or clause\n(aa) or clause (ab) of sub-section (1) of section 12A, shall:-\n\n(a)call for such documents or information from the trust or institution as he thinks necessary\nin order to satisfy himself about:-\n\n(i)the genuineness of activities of the trust or institution; and\n\n(ii)the compliance of such requirements of any other law for the time being in force by the\ntrust or institution as are material for the purpose of achieving its objects, and may also make\nsuch inquiries as he may deem necessary in this behalf; and;\n\n(b)after satisfying himself about the objects of the trust and the genuineness of\nits activities as required under sub-clause (i) of clause (a) and compliance of the requirements\nunder sub-clause (ii) of the said clause], he--\n\n(i)shall pass an order in writing registering the trust or institution;\n\n(ii)if he is not so satisfied, pass an order in writing refusing to register the trust or\ninstitution, and a copy of such order shall be sent to the applicant;\"\n\n(B) SECTION 12AB [Procedure for registration] [Ins. by the Act No. 38 of 2020,\nw.e.f. 1- 4-2021.] (1) The Principal Commissioner or Commissioner, on receipt of an\napplication made under sub-clause (ac) of sub-section (1) of section 12A, shall:-\n\n(a)where the application is made under sub-clause (i) of the said clause, pass an order in\nwriting registering the trust or institution for a period of five years; \n\n(b)where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) of\nthe said clause.--\n\n(i)call for such documents or information from the trust or institution or make such inquiries as\nhe thinks necessary in order to satisfy himself about.-\n\n(A)the genuineness of activities of the trust or institution; and (B)the compliance of such\nrequirements of any other law for the time being in force by the trust or institution as are\nmaterial to the purpose of achieving its objects.\n\n(ii)after satisfying himself about the objects of the trust or institution and the genuineness of\nits activities under item (A) and compliance of the requirements under item (B), of sub-clause (i) of\nclause (a) --\n\n(A)pass an order in writing registering the trust or institution for a period of five years; or\n\n(B) if he is not so satisfied, pass an order in writing rejecting such application and also\ncancelling its registration after affording a reasonable opportunity of being heard;\n\n(c)where affording a reasonable opportunity of being heard, the Principal Commissioner or\nCommissioner may make sub-clause (vi) of the said clause, pass an order in\nwriting provisionally registering the trust or institution for a period of three years from the\n assessment year from which the registration is sought, and send a copy of such order to the\ntrust or institution.\n\nPage 13\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n9.

1. We notice that the provisions of sec. 12AA(3) and 12AA(4) of the Act describes the power\nof Ld CIT(E) to cancel the registration. Similarly, the provisions of sec. 12AB(4) empowers the\nLd CIT(E) to cancel the registration already granted either provisionally or permanently. It can\nbe noticed that the provisions relating to cancellation of registration granted\nunder sec. 12AA and sec.12AB are identically worded under the respective provisions. Hence,\nin our view, the ratio of the decision rendered in the context of sec.12AA can be conveniently\napplied to the applications processed by Ld CIT(E) u/s 12AB of the Act.\n\n10. However, it is noticed that the provisions of sec.12AB(4) is elaborate vis-a-\nvis sec.12AA(3) & (4). Even though, in the instant case, the Ld CIT(E) has not specifically\ninvoked the provisions of sec.12AB(4) of the Act, we may examine the applicability of the\nsaid provision to the facts of the present case. The provisions of sec. 12AB(4) reads as under:-\n\n\"(4) Where registration or provisional registration of a trust or an institution has been granted\nunder clause (a) or clause (b) or clause (c) of sub-section (1) or clause (b) of sub-section (1)\nof section 12AA, as the case may be, and subsequently,--\n\n(a) the Principal Commissioner or Commissioner has noticed occurrence of one or more\nspecified violations during any previous year; or\n\n(b) the Principal Commissioner or Commissioner has received a reference from the Assessing\nOfficer under the second proviso to sub-section (3) of section 143 for any previous year; or\n\n(c) such case has been selected in accordance with the risk management strategy, formulated\nby the Board from time to time, for any previous year, the Principal Commissioner or\nCommissioner shall--\n\n(i) call for such documents or information from the trust or institution, or make such inquiry as\nhe thinks necessary in order to satisfy himself about the occurrence or otherwise of any\nspecified violation;\n\n(ii) pass an order in writing, cancelling the registration of such trust or institution, after\naffording a reasonable opportunity of being heard, for such previous year and all subsequent\nprevious years, if he is satisfied that one or more specified violations have taken place;\n\n(iii) pass an order in writing, refusing to cancel the registration of such trust or institution, if he\nis not satisfied about the occurrence of one or more specified violations;\n\n(iv) forward a copy of the order under clause (ii) or clause (iii), as the case may be, to the\nAssessing Officer and such trust or institution.\n\nExplanation.--For the purposes of this sub-section, the following shall mean \"specified\nviolation\",--\n\n(a) where any income derived from property held under trust, wholly or in part for charitable\nor religious purposes, has been applied, other than for the objects of the trust or institution; or\n\n(b) the trust or institution has income from profits and gains of business which is not incidental\nto the attainment of its objectives or separate books of account are not maintained by such trust\nor institution in respect of the business which is incidental to the attainment of its objectives; or\n\n(c) the trust or institution has applied any part of its income from the property held under a\ntrust for private religious purposes, which does not ensure for the benefit of the public; or\n\nPage 14\n\nITA No. 4527/Mum/2025\nRithwik Foundation for performing Arts\n\n(d) the trust or institution established for charitable purpose created or established after the\ncommencement of this Act, has applied any part of its income for the benefit of any particular\nreligious community or caste; or\n\n(e) any activity being carried out by the trust or institution--\n\n(i) is not genuine; or\n\n(ii) is not being carried out in accordance with all or any of the conditions subject to which it\nwas registered. This clause would be attracted when the activities of the charitable trust or\ninstitution is not genuine or in violation of any of the conditions subject to which the\nregistration u/s 12AB was granted. In the instant case, the Ld CIT(E) has stated the activities\nclaimed to have been carried on is not supported by the expenses incurred. According to Ld\nA.R, the above said observations are against the facts available on record. Hence the above\nsaid observations of Ld CIT(E) is dealt with separately infra.\n\n(vi) Clause (f) would be attracted when there is failure to comply with the requirements of\n\"any other law\". Under this clause \"any other law\" would mean any law other than Income tax\nAct. This meaning can be understood from the Sub-clause (B) of clause (i)\nof sec. 12AB(1)(b) of the Act, which reads as under:-\n\n\"(B) the compliance of such requirements of any other law for the time being in force by the\ntrust or institution as are material for the purpose of achieving its objects\".\n\nThe Ld CIT(E) has to ensure that the charitable trust or institution has complied with the\nrequirement of \"any other law for the time being in force\", as are material for the purpose of\nachieving its objects. Here, it is pertinent to note that the verification by Ld CIT(E) should be\nrestricted to compliance of those laws as are material for the purpose of achieving its objects.\n\n12.