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Showing contexts for: charitable trust objects in Commissioner Of Income Tax vs R.K.Deivendra Nadar Trust on 5 August, 2014Matching Fragments
3. The Commissioner of Income Tax processed the application under Section 12AA of the Act and found the Trust has not done any charitable acts, rejected the application vide order dated 30.3.12. Aggrieved by the said order of the Commissioner of Income Tax, the Trust preferred an appeal before the Appellate Tribunal and relied on the judgment reported in (DIT Vs Meenakshi Amma Endowment Trust (2011) 50 DTR (Kar.) 243. According to the Trust, the application was filed within three months of the formation of the Trust and the charitable activities cannot be assessed in the early stage; and the Commissioner has not considered the objects of the Trust. The Tribunal found that the objects of the Trust are charitable and placed reliance on the decision in Meenakshi Amma Endowment Trust's case (supra), allowed the appeal filed by the Trust for registration under Section 12A of the Act. Aggrieved against the same, the Revenue has preferred the present appeal.
4. Heard Mr.Senthilkumar, learned standing counsel appearing for the appellant and perused the documents placed in the typed set of documents and also the judgment relied on by the Tribunal.
5. Learned standing counsel for the appellant points out that the Trust has not done any charitable activities and, therefore, the Commissioner, has rightly rejected the registration as no independent activities of charitable nature were shown. The learned counsel submitted that the Trust was relying only upon the charitable activities carried on by one Late R.K.Deivandra Nadar, in whose name the Trust was started and, therefore, there is nothing on record to show that the objects of the Trust are for charitable purpose.
11. In the present case, we find no reason as to why the Commissioner had rejected the registration of the Trust when there is ample power under law to rectify any error to cancel the registration of the trust or institution if there is breach of the objects of the trust in the discharge of its charitable objects as propounded in the trust deed. The reasons given by the original authority, we find, to reject the registration, cannot be held against the respondent at this stage and the Tribunal has rightly exercised its discretion in setting aside the said order.
12. It is also brought to the notice of this Court that in T.C. (A) Nos.975 and /14 and 729/13, similar view has been taken by this Court.
13. Accordingly, there is no question of law, much less substantial question of law arising for considering in this appeal and there being no merits, this appeal is dismissed.
14. However, before parting with the case, we hope that the Director of Exemptions/Commissioner of Income Tax concerned will endeavour to scrutinise the working of all the existing trusts and find out whether the funds of the trust are utilised towards the charitable objects propounded in the trust deed and not for the personal interest of any particular person or individual. We fervently hope and trust, that considering the number of charitable trusts that are being registered, the appropriate authority will scrupulously verify the individual charitable trust and take action whenever there is a breach of the objects of the trust and the authority empowered shall take action against such charitable trusts if there is any violation of the objects of the Trust.