Section 12A(1)(ac)(vi) of the Income Tax Act

An intention to benefit a section of the public, as distinguished from a special individual, is sufficient for a trust to be considered for charitable registration and exemptions. This applies even if the beneficiaries belong to a specific caste, community, or professional group, allowing the trust to qualify as serving a general public utility under Section 2(15).

Where a trust application has a curable defect, the assessee should be allowed an opportunity to explain and rectify the defect before the CIT (Exemption). The appellate tribunal may allow the appeal and direct the CIT to reconsider the application.

Registration under Section 12A or 12AB of the Income-tax Act is a mandatory pre-condition for obtaining approval under Section 80G of the Act. Consequently, if an assessee lacks valid registration under Section 12A/12AB, their application for approval under Section 80G is liable to be rejected.

A trust with education as an object, which qualifies as a charitable purpose under section 2(15), should be accepted as having a charitable purpose. The grant of registration under section 12A is applicable when a trust has education as an object.

The Commissioner of Income-tax (Exemptions) cannot invoke Section 13(1)(b) at the stage of granting registration under Section 12AB, especially when the assessee has a valid registration. Section 13(1)(b) is only attracted after the assessee has crossed the hurdle of being eligible for exemption under Section 11 by obtaining registration.

At the stage of registration for charitable trust, the inquiry is limited to the objects of the trust, not the actual activities or application of funds. Issues concerning the genuineness of activities or application of funds can be examined at the assessment stage.