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4) Clause 8(10) of the Trust Deed authorizes investment of trust funds in any securities authorizes by the Indian and Trusts Act, 1882. The said Act governs only private Trust. As a public charitable trust, the assessee is not entitled to invest trust funds in such securities. Aggrieved, the assessee has filed appeal before the Tribunal.

5. Before us, Ld AR for the assessee has reiterated the submissions made before the Ld CIT. Referring to various articles and clauses of the trust deed, it was contended by him that the trust was not formed for profit and all the objects of the trusts are charitable in nature. Reliance was placed on the following case laws:

1. City Montenssari School (Regd.) v. Union of India 315 ITR 48 (Alld.).
2. Aditnar Educational Institution etc. v. Addl. CIT 224 ITR 310 (SC).

4 ITA No3404 & 3405/Del/10

6. The Ld DR, on the other hand, relied on the order of ld CIT. It was submitted by him that the objects of the trust were not charitable in nature. It was further submitted by him that the case laws relied on by the Ld AR for the assessee were not applicable on the facts of the case as in those cases the assessees were already running some educational institution whereas the assessee has not even taken any step to set up any institution. It was, therefore, contended by him that the order of ld CIT be confirmed..

14. The Ld CIT has relied on the decision of Hon'ble Apex Court in the case of Sole Trustee, Loka sikhsana Trust (supra) for the meaning of the expression 'education' used in section 2(15) of the Act. On this basis, it was opined by him that imparting training to persons for appearing in competitive examinations cannot be said to be imparting education. Thus, it was held by him that provision of such object in the 8 ITA No3404 & 3405/Del/10 trust deed would make the trust ineligible for registration u/s 12AA of the Act. The above charge of the Ld CIT has not been dislodged by the assessee. The case laws relied upon by the Ld AR for the assessee has not modified the meaning of the word 'education' used in clause (15) of the section 2 of the Act as explained by the Hon'ble Apex Court in the case of Sole Trustee, Loka sikhsana Trust (supra). This object is also not subservient to the object of imparting normal education. The assessee has also not modified the trust deed as per the objection raised by the Ld CIT. We, therefore, hold that the Ld CIT was justified in holding that the said object of the trust was not charitable as per the provisions of the Act.

15. As regards the object of the clause 6 (b) of the trust deed, we find that the objects mentioned therein are not inter dependent. If the objects mentioned therein were subservient to the main object of providing medical relief to the public at large, it could be said that the object of the trust was charitable in nature. However, as it is not so, we are of the considered opinion that the objection raised by the Ld CIT is quite justified.

16. As regards the other two objections raised by the Ld CIT, we find that clause 8(10) is only with reference to power of Board of Trustees. The same does not relate to the objects of the trust and therefore would not be relevant for grating registration u/s 12AAA of the Act. We also do not find any merit in the objection raised by the Ld CIT with reference to other objects of general public utility.