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3. The assessee thereupon filed an appeal before the Tribunal. The Tribunal, by an order dated 15.03.2019, inter alia held that primary object of the Trust is undoubtedly for a charitable purpose and each of the activities and incidental objects are to be read along with primary object of the Trust. It was further held that there is no material on record to hold that objects of the Trust are either not charitable in nature or its activities are not genuine. The Tribunal accordingly granted registration to the assessee under Section 12AA of the Act as well as held that the assessee is entitled to benefits under Section 80G of the Act. In the aforesaid factual background, this appeal has been filed.

6. We have considered the submissions made by the learned counsel for the parties and have perused the record. The Act provides for exemption of income of charitable institutions under Section 11 of the Act. Section 2(15) of the Act defines the expression 'charitable purpose' and includes the relief of the poor, education, yoga, medical relief, reservation of environment (including water sheds, forest and wild life) and preservation of monuments or places or objects of artistic or historic interest and the advancement of any other object of general public utility. It is well settled in law that where the purpose of a Trust is education, the requirement of definition of 'charitable purpose' would be satisfied even if an activity of profit is carried on in the course of actual carrying out of the primary purpose of the Trust or the Institution. If a Trust's claim for charitable purpose is covered under the head of 'advancement of any other object of general public utility', the question would arise whether the purpose of Trust or Institution involves the carrying on of any activity of profit. However, it would not be relevant where the purpose of the Trust is relief of the poor, education or medical relief, etc. (See: DHARMADEEPTI Vs. CIT' (1974) 114 ITR 454).

7. Section 12AA of the Act provides for procedure for registration. The Commissioner of Income Tax is required to satisfy himself about the objects of the Trust and genuineness of its activities and has to grant registration only if it is so satisfied. The scope of examination is confined in ascertaining whether the Trust is constituted genuinely for carrying on charitable activities or whether it has the capacity to carry out its professed objects. It is also well settled legal proposition that at the time of grant of registration, Commissioner of Income Tax is not required to examine the application of income and has to examine whether the objects of the Trust are charitable and whether the application is made in consonant with requirements of Section 12A of the Act read with Rule 17F of the Income Tax Rules. The genuineness of the activities of the Trust is not a matter to be looked into at the time of dealing with the issue of registration of the Trust under Section 12AA of the Act. (See: 'DIRECTOR OF INCOME TAX Vs. GARDEN CITY EDUCATIONAL TRUST' (2010) 191 Taxman 238 (KAR) AND 'ANANDA SOCIAL AND EDUCATIONAL TRUST Vs. COMMISSIONER OF INCOME TAX' (2020) 114 Taxmann.com 693 (SC)).

9. From conjoint reading of the aforesaid clauses of the Trust Deed, it is axiomatic that primary purpose / objects of the assessee enumerated in the Trust Deed are charitable in nature. The other clauses of the Trust Deed had to be necessarily read in the context of the aforesaid clauses. The Tribunal, after taking into account the relevant clauses of the Trust Deed in paragraphs 5 to 10, has recorded a finding of fact that the primary object of the Trust is charitable in nature. Even otherwise, the activities of the assessee as set out in the Trust Deed are covered within the ambit of charitable purpose being primarily for education. The aforesaid finding by the Tribunal has not been assailed as perverse in this appeal. Therefore, the issue with regard to the activity of the assessee being commercial or business in nature, cannot be gone into at the time of consideration of the application under Section 12AA of the Act.