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This view has been held by Hon'ble Allahabad High Court in the case of CIT, Agra vs. Sri Radha Raman Niwas Trust. The findings of the Hon'ble Court are placed in (PB-76) For the sake of completeness the findings of the Court are reproduced below.

"We find that at the time of granting the registration under Section 12AA. the Commissioner has limited power only to examine objects of the Trust and genuineness of the activities. The law requires that he should pass a speaking order. In the case under consideration, we notice that the assessee has furnished all the required details before the CIT. As regards the objects of the trust; we notice that these are charitable objects in accordance with Section 2 (15) of the Act. To cany sewa puja of Sri Girdhah Ji and carry Akhand Naam Sankirtan uninterruptedly in Aashram is one type of meditation and yoga The trust carries such meditation and yoga since its inception, more than last 50 years. Such types of meditai on accepted not only in India but are accepted in western country also as a great source for physical and mental health and spiritual attainment. When a large number of people feel that meditation is a great source for physical, mental and spiritual well being, it must be held that these activities are for the advancement of general pubi c utility. Maintaining Samadhi of Guru is also charitable purpose in accordance with Section 2 (15) o the Act and Pooja of such Samadhi reminds people of ideology of Guru, in whose memory pooja is carried out. Organizing bhandara is an activity of providing foods to persons irrespective of any cost or religious Such bhandara activities are like day meal food scheme of the government.

When the government is running such scheme, under those circumstances, it cannot be said that objects of the trust are not charitable. Running gaushala, Piaau and providing dana to birds is also charitable activities. The assessee discharged the burden in this regard by furnishing all necessary details of copy of trust deed pointing out various charitable objects of the trust and expenditures incurred on charitable activities."

Asst. Year:

11. Therefore, the object of Section 12AA of the Act, is to examine the genuineness of the objects of the Trust, but not the income of the Trust for charitable or religious purposes. The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Therefore, we find that the judgments referred to by the learned counsel for the appellant are not applicable to the facts of the present case arising out of the question of registration of the Trust and not of assessment.