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3. The Trust was stated to be established for the benefit of humanity at large and class of people mentioned above without discrimination of caste, religion, creed or sex. Looking to its objects which was charitable in nature, trust has applied for registration u/s.12AA before the ld. CIT(E) vide application dated 26.03.2015 and also application for exemption u/s.80G.

4. Ld. CIT (E) on the perusal of the Trust deed noted that there were five initial trustees, and all were Non-Resident Indian, i.e., who have taken the citizenship of the foreign country. According to ld. CIT (E) in terms of Explanation-1 to Section 60 and Section 73 of the "The Indian Trust Act" a non-resident cannot be a trustee of an Indian resident trust unless he is domiciled in India. Based on this reasoning, he has rejected the assessee's application for grant of registration u/s.12AA and application for exemption u/s.80G. The relevant observation of the ld. CIT(E) reads as under:

4.1 Thus, the entire premise for rejecting the assessee's application was that the applicant-assessee cannot be held to be a valid Trust under the Indian Trust Act, 1882.

5. Before us, ld. counsel for the assessee submitted that the constitution of the trustees was substituted before filing of 'Form-10A' seeking registration u/s.12A, wherein one, Mr. Milakh Raj Arora who was ordinary resident of India was residing in Ludhiana, Punjab on permanent basis and has replaced by one of the non-Indian trustees. The list of the trustees was also enclosed along with copy of 'Form 10A' filed before the ld. CIT (E) duly signed by Mr. Milakh Raj Arora. Thus, he submitted that Explanation-1 to Section 60 of the Indian Trust Act does not apply in the present case, as one of the trustees is ordinary resident and Indian citizen. He further submitted that Section 12AA requires that ld. CIT(E) has to satisfy himself about the objects which should be in the nature of 'charitable purposes' and also about the genuineness of the activities of the Trust. There is no adverse finding or opinion of the ld. CIT(E) on the objects, therefore, registration cannot be cancelled. In support, he strongly relied upon the decision of ITAT Jaipur Bench in the case of Sidha Sthan Shri Kapleshwar Mahadev Sanyas Ashram Trust vs. CIT(E), ITA Nos.655 & 656/JP/2017 dated 28th September 2007, (2018) 162 DTR (JP) (Trib) 202. He further submitted that all the other trustees otherwise were basically from Indian origin and their parents were staying in India and due to their professional activities they were settled abroad. Thus, trustees who are well reputed and famed doctors are doing genuine work for imparting education in modern medicine and medical science and educating the doctors in global standards in medical fields and medicine. He also pointed out that Pondicherry Government has given grant to the assessee Trust looking to its noble cause. Thus, not only it is a valid Trust but also its objects were charitable and hence registration u/s.12A should be granted.

10. Now coming to the 'objects' as given in the 'Trust Deed', prima facie, it appears that all the objects are ostensibly for the charitable purposes. However, the ld. CIT(E) has not examined the objects and the genuineness of the activities of the assessee trust which is required to be examined while considering the registration u/s 12AA, and therefore, in all fitness of mater, we deem it proper that this matter of registration should be restored back to the file of the ld. CIT(E) who shall examine the 'objects' of the Trust as well as genuineness of its activities; and if the assessee trust's 'objects' are charitable and is actually carrying out charitable activities for the benefit of public at large, then registration u/s.12AA should be granted. Consequently, the application for exemption u/s.80G should also be examined in that light. With this direction, appeal of the assessee is treated as allowed for statistical purpose.