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“5. Learned standing counsel appearing for the Revenue reiterated the submissions made before the Tribunal and contended that the registration under Section 12AA of the Income Tax Act cannot be granted to a trust having both charitable and religious objects on an application under Section 11(1)(a) of the Income Tax Act.

6. The very issue raised by the Revenue has been dealt with by a Division Bench of this Court in the case of CIT Vs. Arulmighu Sri Kamatchi Amman Trust reported in (2012) 206 Taxmann 69. In the said case, the respondent / assessee sought for registration under Section 12AA of the Income Tax Act on the ground that the object of the Trust was religious. The Commissioner of Income Tax rejected the application on the ground that the Trust was spending money in receipts towards religious and administrative purposes and the activities claimed to be carried on by the said Trust were an admixture of both religious and charitable. The said Trust filed an appeal before the Income Tax Appellate Tribunal. Following the decision in the case of CIT Vs. Upper Ganges Sugar Mills Ltd., reported in 227 ITR 578 and in the case of State of Kerala Vs.MP.Shantiverma Jain reported in (1998) 231 ITR 787 (SC), the Tribunal allowed the appeal. Challenging the same, the Revenue filed an appeal before this Court contending that the http://www.judis.nic.in  Order in TC No.404 of 2012 (C.I.T., -Vs- Sri Bhagawan Mahavir Digambar Jain Mgt. Trust ) dt 13.02.2020 Tribunal failed to appreciate the activities claimed to be carried on by the said assessee, which was an admixture of both religious and charitable in nature. Therefore, the Tribunal ought not to have interfered with the order of the Commissioner of Income Tax. The Division Bench of this Court, after taking into consideration the provision under Section 11(1)(a) of the Income Tax Act, which states that subject to the provisions of Sections 60 to 63, the income derived from property held under trust wholly for charitable or religious purposes, to the extent of which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income as accumulated or set apart is not in excess of fiteen per cent of the income from such property shall not be included in the total income of the previous year of the person in receipt of the income. Thus, the Division Bench held “from a reading of the above, it is clear that the income derived from the property held under trust wholly for charitable and religious purpose, shall not be included in the total income of the Trust. Therefore, the said provision would be applicable to both the Trusts established with the object of charitable as well as religious purposes. Therefore, Section 12AA of the Income Tax Act does not make any difference between the Trusts created with the object of charitable and religious purposes and, even if the Trust is not created with both the objects, law does not make any disqualification for the Trust to make an application for registration. Therefore, the Tribunal has correctly applied the provision of law and allowed the appeal.” http://www.judis.nic.in  Order in TC No.404 of 2012 (C.I.T., -Vs- Sri Bhagawan Mahavir Digambar Jain Mgt. Trust ) dt 13.02.2020 http://www.judis.nic.in  Order in TC No.404 of 2012 (C.I.T., -Vs- Sri Bhagawan Mahavir Digambar Jain Mgt. Trust ) dt 13.02.2020 DR.VINEET KOTHARI, J.