KRISHNAMURTI EDUCATION TRUST,MUMBAI vs. DIT (E), MUMBAI

आदेश / O R D E R

Per Sandeep Gosain, Judicial Member:

Krishnamurti Education Trust I) On the facts and in the circumstances of the case and in law, the learned D.l.T.(E)erred in not granting registration U/s. 12AA r.w.rule 17A of the Income Tax Act 1961 & Rules 1962 respectively. ii) On the facts and in the circumstances of the case and in law, the learned D.l.T.(E) erred in holding that the objects of the Trust lack binding legal obligation on trustees in regards to the application of income. iii) On the facts and in the circumstances of the case and in law, the learned D.l.T.(E) erred in holding that the trust is not a genuine Charitable Trust. iv) On the facts and in the circumstances of the case and in law, the learned D.l.T.(E) erred in holding that the objects of the Trust are of Commercial nature and thereby the appellant Trust is not entitled to Registration.

V) The appellant craves, leave to add, alter, amend or delete any ground(s) of appeal either before or during the course of hearing of the appeal.

Krishnamurti Education Trust Aggrieved by the order of AO, assessee preferred appeal before Ld. CIT(A) and Ld. CIT(A) after considering the case of both the parties dismissed the appeal of the assessee. Now before us, the assessee has preferred the appeal by raising the above grounds.

Ground No. (i) to (iv) 4. These ground raised by the assessee are inter connected and inter related and relates to challenging the order of Ld. DIT(E) in not granting registration U/s. 12AA r.w.rule 17A of the Income Tax Act 1961 & Rules 1962 respectively, therefore we thought is fit to dispose of by this common order.

3.. As per the provisions of Section 12AA(1)(b), a trust is to be granted registration if the Commissioner is satisfied about the objects of the trust and the genunieness of its activities. Both these requirements are cumulative and not alternative. Although the applicant trust has filed acopy of certificate of registration issued by the Charity Commissioner, the same, though relevant, cannot be treated as conclusive proof of the fact that the trust has been created for 'charitablepurpose' as defined under Section 2(15) of the Act. A perusal of the Trust Deed reveals that theapplicant trust has charitable as well as non- charitable/ business objects such as to provision ofconsultation services to outside agencies for educational matters. It is also observed that someof its objects are vague and highly philosophical such as carrying out study and research in human being's relationship to nature, cosmos and to self with a view to understanding and realization of human potential in spiritual and rational living, promoting universal fees through the understanding and transformation of human relationship and provision of facilities for religious and creative living. It is further observed that Krishnamurti Education Trust under clause 22 of the Rules and Regulgtion, the funds of the al-.r.-0.icant a-e to he !ised for the fulfillment of the object!, as specified in the MOA. Thus, there is no binding legal obligation on the trustees to utilize the trust fund and income solely for charitable purposes. In this connection, vide order sheet noting dated 21.09.2012, the AR was requested to show-cause as to how these objects are charitable u/s.2(15). In response, the applicant furnished its explanation vide letter dated 25.09.2012 stating that its objects are not commercial and are covered within the meaning of Section 2(15) of the Act. The submissions of the applicant have been considered carefully, but the same are criteria for a valid trust. For the trust to be accepted as charitable trust for purposes of exemption, it is all the more necessary that the objects should be specific and not vague so as to conform to the requirement of income tax law in this regard.

After having gone through the facts of the present case as well as considering the orders passed by revenue authorities and submissions made by Ld. DR, we find that Ld. CIT(A) has correctly decided this ground of appeal raised by the assessee on merits. Moreover, no new facts or contrary judgments have been Krishnamurti Education Trust brought on record before us in order to controvert or rebut the findings so recorded by LdDIT(E). Therefore, there are no reasons for us to interfere into or deviate from the findings recorded by the Ld.DIT(E). Hence, we are of the considered view that the findings so recorded by the Ld. CIT (A) are judicious and are well reasoned. Resultantly, these ground raised by the assessee stands dismissed.

Ground No. (v) 6. This ground is general in nature, thus requires no specific adjudication.