M/s Savithri Charities, Bangalore V. CIT, Bangalore

ITA 630/BANG/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8653 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-02-2016
• Assessment Year: misc
• Appeal Filed On: 22-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N R NAGARAJ
• Keywords: Charitable institution; Competent authority
• Section: 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ABRAHAM P. GEOGE, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO.630/BANG/2015 ASSESSMENT YEAR : N.A. M/S. SAVITHRI CHARITIES, NO.76, SAVITHRI FARM HOUSE, SUPRABHATHANAGAR, TIGALARAPALYA, PEENYA 2 ND STAGE, BANGALORE 560 058. PAN: AAOTS 3442G VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI N.R. NAGARAJ, ADVOCATE RESPONDENT BY : SMT. NEERA MALHOTRA, CIT(DR) DATE OF HEARING : 01.02.2016 DATE OF PRONOUNCEMENT : 10.02.2016 O R D E R PER VIJAY PAL RAO, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER DATED 26.2.2015 PASSED U/S. 12AA OF THE INCOME-TAX ACT, 1 961 [THE ACT] OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) [CIT(E)] WHEREBY APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S. 12AA WAS REJE CTED. ITA NO.630/BANG/2015 PAGE 2 OF 11 2. THE ASSESSEE TRUST FILED AN APPLICATION IN FORM 10A FOR REGISTRATION U/S. 12AA ON 21.8.2014. THE CIT(E) NOTED FROM THE TRUST DEED THAT AS PER CLAUSE 5D, THE BOARD OF TRUSTEES SHALL FILL UP THE VACANCY OF THE TRUSTEES THAT MAY ARISE EITHER BY REMOVAL OR OTHERWISE, THROUGH A RESOLUTION OF THE BOARD BY NOMINATING THE SUCCESSOR/DESCENDANT OF THE OUTGO ING/REMOVED/ DECEASED TRUSTEE / NO OUTSIDER FROM THE FAMILY OF THE TRUSTEE NOMINATED HEREBY SHALL BE NOMINATED TO THE BOARD. FURTHER, C LAUSE 5F READS THAT AFTER THE AUTHOR DEMITS HIS OFFICE OF MANAGING TRUSTEE ON HIS OWN, SMT. S. MOKSHATARA SHALL BECOME THE MANAGING TRUSTEE AND IN DUCT A NEW MEMBER AS A TRUSTEE AS PROVIDED UNDER CLAUSE 5(D). THE CI T(E) WAS OF THE VIEW THAT THESE TWO CLAUSES OF THE TRUST DEED REQUIRED A MENDMENT BY SUBSTITUTING THE SUCCESSOR OF THE TRUSTEE IN THE BO ARD BY NOMINATING ANY PERSON, INSTEAD OF FAMILY MEMBER OF THE TRUSTEE. 3. THE ASSESSEE CONTENDED THAT THE PROVISION IN CLA USE 5D & 5F IS MEANT TO PROTECT THE TRUST PROPERTY AND MONEY CONTR IBUTED BY THE MANAGING TRUSTEE AND HIS FAMILY MEMBERS AND THEREFORE NO AME NDMENT IS REQUIRED IN RESPECT OF THE CLAUSES OF THE TRUST DEED, WHEN THE OBJECTS OF THE TRUST ARE CHARITABLE IN NATURE. THE CIT(E) REJECTED THE APPL ICATION FOR SEEKING REGISTRATION U/S. 12AA BY OBSERVING THAT THE TRUST IS RELUCTANT TO CARRY OUT THE AMENDMENT AS REQUIRED BY HIM, THEREFORE HE HAS CONC LUDED THAT THE TRUST IS BASICALLY A PRIVATE TRUST FOR ALL INTENTS AND PURPO SES AND NOT A GENUINE PUBLIC CHARITABLE TRUST. ITA NO.630/BANG/2015 PAGE 3 OF 11 4. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE CIT(E) HAS NOT DISPUTED THE CHARITABLE NATURE OF TH E OBJECTS OF THE TRUST AND THE PURPOSE FOR WHICH THE TRUST IS CREATED/FLOATED. HOWEVER, APPLICATION OF THE ASSESSEE SEEKING REGISTRATION U/S. 12AA HAS BEE N REJECTED BY THE CIT(E) BY OBJECTING TO CLAUSES 5D & 5F PROVIDING FO R THE SUCCESSORS OF THE TRUSTEE IN THE BOARD FROM THE FAMILY MEMBERS OF THE TRUSTEE AND NOT OUTSIDER. HE HAS FURTHER CONTENDED THAT TO BRING A TRUST WITHIN THE FRAMEWORK OF CHARITABLE NATURE, IT IS ONLY THE OBJE CT WHICH MATTERS AND NOT ITS CONSTITUTION. THE OBJECTS OF THE TRUST ARE WEL L DEFINED IN THE TRUST DEED ITSELF AND THEREFORE CONSTITUTION OF THE TRUST IN M ANAGING THE TRUST PROPERTY CANNOT BE A GROUND FOR REJECTION THE APPLICATION SE EKING REGISTRATION U/S. 12AA OF THE ACT. IN SUPPORT OF HIS CONTENTIONS, H E HAS RELIED ON THE FOLLOWING DECISIONS:- (I) GURU GOVINDA SINGH EDUCATION SOCIETY V. CIT, 31 3 ITR (AT) 32 (ASR) (II) AGARWAL MITRA MANDAL TRUST V. DIT(E), 293 ITR (AT) 259 (DEL) (III) B.K.K. MEMORIAL TRUST V. CIT, ITA NO.6088/DEL /2010 DATED 10.6.2011. 5. ON THE OTHER HAND, THE LD. DR HAS RELIED UPON TH E IMPUGNED ORDER OF CIT(E) AND SUBMITTED THAT THE CIT(E) HAS REJECTED T HE APPLICATION BY NOTING THE FACT THAT THE ASSESSEE TRUST IS MORE OF A PRIVA TE TRUST AND NOT A PUBLIC CHARITABLE TRUST. ITA NO.630/BANG/2015 PAGE 4 OF 11 6. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD, WE NOTE THAT THE ASSESSEE TRUST WAS CRAT ED BY TRUST DEED DATED 14.7.2014 WHICH HAS BEEN DULY REGISTERED WITH THE S UB-REGISTRAR, PEENYA, BANGALORE. THE OBJECTS OF THE TRUST ARE AS UNDER:- (A) TO RENDER FINANCIAL ASSISTANCE BY WAY OF SCHOLA RSHIP, MAINTENANCE TO STUDENTS STARTING FROM PRIMARY TO CO LLEGIATE LEVEL. (B) TO RENDER MEDICAL ASSISTANCE BY WAY OF HELPING THE POOR AND NEEDY IN GETTING PROPER AND ADEQUATE MEDICAL TREATM ENT INCLUDING DIAGNOSTIC AND THERAPEUTIC IN A GOOD AND RECOGNIZED MEDICAL INSTITUTION. 7. THUS, THERE IS NO DISPUTE THAT THE TRUSTS MAIN OBJECTS ARE TO PROVIDE FINANCIAL ASSISTANCE TO THE POOR STUDENTS WHO HAIL FROM THE FAMILY BELOW POVERTY LINE AND PARENTS OF SUCH STUDENTS ARE UNABL E TO FINANCE THE EDUCATION. THE OBJECTS OF THE TRUST ARE NOT DISPUT ED BY THE CIT(E) BEING CHARITABLE IN NATURE. THE CIT(E) HAS OBJECTED TO T HE CLAUSE 5D & 5F WHEREBY THE SUCCESSOR OF THE TRUSTEES IN THE BOARD OF TRUSTEES ON A VACANCY ARISING EITHER BY REMOVAL OR OTHERWISE, SHA LL BE BY NOMINATING THE SUCCESSOR/DESCENDANT OF THE OUTGOING/REMOVED/DECEAS ED TRUSTEE. THUS, AS PER THESE CLAUSES, ONLY A SUCCESSOR/DESCENDANT O F THE OUTGOING TRUSTEE CAN BE NOMINATED AS TRUSTEE ONLY FROM THE FAMILY ME MBERS OF THE TRUSTEE. THIS PROVISION DOES NOT ALLOW ANY OUTSIDER TO BE NO MINATED AS A TRUSTEE OF THE TRUST. THEREFORE THE CIT(E) ADVISED THE ASSESS EE TRUST TO AMEND THESE ITA NO.630/BANG/2015 PAGE 5 OF 11 CLAUSES BY INCORPORATING NOMINATION OF THE TRUSTEE AS ANY PERSON INSTEAD OF THE SPECIFIED SUCCESSOR/DESCENDANT OF THE OUTGOI NG/DECEASED TRUSTEE. 8. AT THE OUTSET, WE NOTE THAT AS PER PROVISIONS OF SECTION 12A OF THE ACT, WHAT IS REQUIRED TO BE CONSIDERED FOR THE PURP OSE OF SATISFYING THE AUTHORITY IS WHETHER THE EXISTENCE OF THE TRUST IS GENUINE AND THE OBJECTS OF THE TRUST ARE CHARITABLE IN NATURE. THE CONSTITUTI ON OF THE BOARD OF TRUSTEES DOES NOT AFFECT THE GENUINENESS OF THE ACTIVITIES A ND THE CHARITABLE NATURE OF THE OBJECTS OF THE TRUST, AS THE TRUSTEES ARE ON LY MANAGING THE AFFAIRS AND PROPERTY OF THE TRUST AND ARE NOT THE BENEFICIARIES OF THE TRUST. THUS, ONCE THE OBJECTS OF THE TRUST ARE FOUND TO BE CHARITABLE IN NATURE AND THE ACTIVITIES OF THE TRUST ARE NOT DOUBTED AND THEREFORE, GENUINE NESS OF THE EXISTENCE OF THE TRUST ARE NOT IN QUESTION, THEN THE MERE CONSTI TUTION OF THE BOARD OF TRUSTEES CANNOT BE A GROUND FOR REJECTION OF REGIST RATION U/S. 12AA. IN THE CASE OF GURU GOVINDA SINGH EDUCATION SOCIETY V. CIT, 313 IT R (AT) 32 (ASR), THE AMRITSAR BENCH OF THE TRIBUNAL HAS OBSERVED IN PARA 23 AS UNDER:- 23. THE CONTENTION OF THE ASSESSEE AS AFORESAID H AS NOT BEEN REFUTED. A COPY OF THE FIR WAS DULY FILED BEFORE TH E ASSESSING OFFICER. A COPY THEREOF HAS BEEN FILED BEFORE US TO O. MOREOVER, AGAIN, THERE IS NO CHARGE OF THE COMMISSIONER OF IN COME-TAX AGAINST THE ACTIVITIES OF THE ASSESSEE. FURTHER, IT HAS NOT BEEN DENIED THAT THE EDUCATIONAL ACTIVITIES IN THE RURAL AREA HAVE BEEN CARRIED OUT BY THE ASSESSEE-SOCIETY, WHICH ACTIVITI ES HAD ALREADY BEEN CHALLENGED. THE ASSESSMENT ORDER FOR THE ASSES SMENT YEAR 2004-05 WAS PASSED ON DECEMBER 18, 2006. A COPY THE REOF IS AT THE ASSESSEE'S PAPER BOOK PAGES 88 TO 99. PERTINENT LY, NO ADDITION WAS MADE BY THE ASSESSING OFFICER, PROVING THE CASE OF THE ITA NO.630/BANG/2015 PAGE 6 OF 11 ASSESSEE THAT THE ACTIVITY WAS CARRIED ON IN THE NO RMAL COURSE. FURTHER, THE ASSESSEE PRODUCED BEFORE THE ASSESSING OFFICER A LIST OF THE DONEES WITH COMPLETE ADDRESSES AND DETAILS, A COPY OF WHICH IS AT THE ASSESSEE'S PAPER BOOK PAGES 91 TO 9 4. THE ASSESSING OFFICER IS NOT SHOWN TO HAVE MADE ANY ADD ITION AND IN FACT, HE HAS NOT DOUBTED SUCH DONEES. THEREFORE, TH IS ISSUE RAISED BY THE LEARNED COMMISSIONER OF INCOME-TAX CANNOT LE AD TO CANCELLATION OF THE REGISTRATION GRANTED. PERTINENT LY, UNDER SECTION 12AA(3) OF THE ACT, THE LEARNED COMMISSIONER OF INC OME-TAX IS ENTITLED ONLY TO LOOK INTO THE ACTIVITIES AND OBJEC TS OF THE TRUST, AND NO FURTHER. 9. THUS, IT IS SETTLED PROPOSITION OF LAW THAT AT T HE TIME OF GRANTING REGISTRATION U/S. 12AA, THE COMPETENT AUTHORITY HAS TO LOOK INTO THE ACTIVITIES OF THE TRUST AND OBJECTS OF THE TRUST AND NO FURTHE R. SIMILARLY, IN THE CASE OF AGARWAL MITRA MANDAL TRUST V. DIT(E), 293 ITR (AT) 259 (DEL) , THE DELHI BENCH OF THE TRIBUNAL HAS OBSERVED IN PARAS 7 & 8 A S UNDER:- 7. AS ALREADY NOTED, THE PROCEDURE FOR REGISTRATI ON LAID DOWN IN SECTION 12AA REQUIRES THE COMMISSIONER OF INCOME -TAX TO SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES AND OBJECT OF THE TRUST OR INSTITUTION AND AS SUCH, THE SCOPE OF HIS POWERS IS LIMITED IN THIS REGARD TO MAKE SUCH ENQUIRIES, AS H E MAY DEEM FIT, TO SATISFY HIMSELF IN RESPECT OF THESE TWO ASPECTS. AS HELD BY THE HON'BLE SUPREME COURT IN THE CASE OF AHMEDABAD RANA CASTE ASSOCIATION [1971] 82 ITR 704, AN OBJECT BENEFICIAL TO THE SECTION OF THE PUBLIC IS AN OBJECT OF GENERAL PUBLIC UTILIT Y AND TO SERVE A CHARITABLE PURPOSE, IT IS SUFFICIENT IF THE INTENTI ON IS TO BENEFIT A SECTION OF THE PUBLIC AS DISTINGUISHED FROM A SPECI FIED INDIVIDUAL. THIS DECISION OF THE HON' BLE APEX COURT FOLLOWED S UBSEQUENTLY BY THE HON' BLE ALLAHABAD HIGH COURT IN THE CASE OF SU RJI DEVI KUNJI LAL JAIPURIA CHARITABLE TRUST (NO. 1) [1990] 186 IT R 728 AND IN THE CASE OF CIT V. PT. RAM SHANKER MISRA TRUST [199 6] 222 ITR 252 TO HOLD THAT THE EXPENDITURE INCURRED BY A TRUS T FOR THE BENEFIT OF ONE COMMUNITY IS AN EXPENDITURE INCURRED ON A PU BLIC CHARITABLE OBJECT, STILL HOLDS THE FIELD NOTWITHSTA NDING THE PROVISIONS CONTAINED IN SECTION 13(1)(B) SINCE THE DEFINITION OF ITA NO.630/BANG/2015 PAGE 7 OF 11 THE TERM 'CHARITABLE PURPOSE' GIVEN IN SECTION 2(15 ) CONTINUES TO REMAIN THE SAME. THE PROVISIONS OF SECTION 13(1) AR E THUS NOT DIRECTLY RELEVANT IN THIS REGARD. ON THE OTHER HAND , THE SAID SECTION BEGINS WITH THE WORDS 'NOTHING CONTAINED IN SECTION 11 OR SECTION 12 SHALL OPERATE SO AS TO EXCLUDE FROM THE TOTAL IN COME OF THE PREVIOUS YEAR OF THE PERSON. . . .' WHICH CLEARLY E NVISAGES OPERATION OF SECTION 11 OR SECTION 12 BEFORE THE PR OVISIONS OF SECTION 13 CAN BE APPLIED OR INVOKED IN A GIVEN CAS E. IT ALSO SHOWS THAT THE SAID PROVISIONS CAN BE APPLIED OR IN VOKED ONLY AT THE TIME OF COMPUTATION OF TOTAL INCOME OF THE PREV IOUS YEAR OF THE PERSON WHO IS CLAIMING EXEMPTION UNDER SECTION 11 OR SECTION 12. BOTH THESE SITUATIONS CONTEMPLATED IN SECTION 1 3 CAN ARISE ONLY AND ONLY IF REGISTRATION UNDER SECTION 12A IS GRANTED TO THE SAID PERSON. IF THE SAME IS NOT GRANTED AND THE PER SON IS REFUSED THE REGISTRATION UNDER SECTION 12A, HE WOULD NOT BE ENTITLED TO CLAIM ANY BENEFIT AVAILABLE UNDER SECTION 11 OR 12 AND THERE WILL BE NO OCCASION TO THE ASSESSING OFFICER TO INVOKE O R APPLY SECTION 13 IN HIS CASE. THIS POSITION WOULD NOT ONL Y BE CONTRARY TO THE SCHEME OF THE ACT AS LAID DOWN IN SECTIONS 11, 12, 12A, 12AA AND 13 BUT THE SAME MAY ALSO CAUSE PREJUDICE/H ARDSHIP TO THE PERSONS IN CERTAIN CASES. FOR INSTANCE, THE OBJ ECTS FOR WHICH THE ASSESSEE-TRUST IN THE PRESENT CASE IS ESTABLISH ED, AS INDICATED IN OBJECT CLAUSES NO. 3(1) AND 3(2), NO DOUBT ARE FOR THE BENEFITS OF A PARTICULAR COMMUNITY, VIZ., VAISH. NEVERTHELESS, AS PER OBJECT CLAUSE 3(4), IT WAS ALSO ESTABLISHED TO RUN SCHOOLS , COLLEGES, HOSPITALS ETC. FOR THE BENEFIT OF PUBLIC AT LARGE. IN THIS SITUATION, IF THE REGISTRATION APPLIED FOR UNDER SECTION 12A IS N OT GRANTED TO IT FOR VIOLATION OF THE PROVISIONS OF SECTION 13(1)(B) AND IT IS ULTIMATELY FOUND THAT THE ASSESSEE-TRUST ACTUALLY A CCOMPLISHED THE OBJECTS AS INDICATED IN CLAUSE NO. 3(4) ONLY FOR TH E BENEFIT OF PUBLIC AT LARGE WITHOUT THERE BEING ANY ACTIVITY UN DERTAKEN AS PER OBJECT CLAUSE NO. 3(1) AND 3(2), IT WOULD BE DEPRIV ED OF ANY BENEFITS WHICH OTHERWISE WERE AVAILABLE TO IT UNDER SECTION 11 OR SECTION 12. THIS CERTAINLY IS NOT THE LEGISLATIVE I NTENTION AS REFLECTED IN THE SCHEME LAID DOWN IN SECTIONS 11, 1 2, 12A, 12AA AND 13. ON THE CONTRARY, THE PHRASEOLOGY OF SECTION 13, AS ALREADY DISCUSSED, MAKES IT EXPLICITLY CLEAR THAT THE SAID PROVISIONS BECOME OPERATIVE OR RELEVANT ONLY AT THE STAGE OF A SSESSMENT WHEN THE ASSESSING OFFICER IS REQUIRED TO EXAMINE T HE CLAIM OF THE ASSESSEE FOR BENEFITS UNDER SECTION 11 OR SECTI ON 12 WHILE COMPUTING THE TOTAL INCOME OF THE ASSESSEE OF THE R ELEVANT PREVIOUS YEAR. THE APPLICATION OF SECTION 13 THUS F ALLS WITHIN THE ITA NO.630/BANG/2015 PAGE 8 OF 11 EXCLUSIVE DOMAIN OF THE ASSESSING OFFICER AND THE P ROVISIONS CONTAINED THEREIN CAN BE INVOKED BY HIM WHILE FRAMI NG THE ASSESSMENT AND NOT BY THE COMMISSIONER OF INCOME-TA X WHILE CONSIDERING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA. 8. KEEPING IN VIEW THE REASONS GIVEN ABOVE, WE ARE OF THE VIEW THAT THE ACTION OF THE LEARNED DIT (EXEMPTION) IN REFUSING TO GRANT REGISTRATION TO THE ASSESSEE-TRUST ON THE GRO UND OF VIOLATION OF THE PROVISIONS OF SECTION 13(1)(B) WAS NOT JUSTI FIED ESPECIALLY WHEN HE HAD NOT DOUBTED EITHER THE GENUINENESS OF T HE ACTIVITIES OF THE ASSESSEE-TRUST OR THE NATURE OF ITS OBJECT B EING CHARITABLE. IN THAT VIEW OF THE MATTER, WE SET ASIDE HIS IMPUGNED ORDER AND DIRECT THAT REGISTRATION APPLIED FOR BY THE ASSESSE E-TRUST UNDER SECTION 12A BE GRANTED TO IT. 10. IDENTICAL ISSUE WAS ALSO CONSIDERED BY THE DELH I BENCH OF THE TRIBUNAL IN THE CASE OF B.K.K. MEMORIAL TRUST V. CIT, ITA NO.6088/DEL/2010 DATED 10.6.2011 IN PARAS 12 & 13 AS UNDER:- 12. APROPOS THE POWERS OF THE TRUSTEES, THESE ARE CONTAINED AT APB-12 AND ARE AS FOLLOWS:- POWERS AND DUTIES OF OTHER TRUSTEES : 1. THE BOARD OF TRUSTEES MAY APPOINT ONE OR MORE T RUSTEES AS AND WHEN REQUIRED. 2. THE TRUSTEE SHALL HAVE RIGHT TO SERVE THE TRUST BY FULFILLING THE AIMS AND OBJECTS OF THE TRUST ON BEHALF OF THE BOARD OF TRUSTEES AND IN FAVOR OF THE BENEFICIARY AS PER AIM S AND OBJECTIVES AND RULES AND REGULATIONS OF THE TRUST; 3. THAT IF ANY TRUSTEE VIOLATES OR DENIES THE DUTI ES AND DO UNLAWFUL ACTS WHICH IS BEYOND THE RULES OF THE TRUS T, HE WILL BE FULLY LIABLE FOR ALL COSTS, DAMAGES, LOSSES FOR THE SAME. 4. BOARD OF TRUSTEES MAY REMOVE ANY TRUSTEE/TRUSTE ES OTHER THAN THE THREE FOUNDER TRUSTEES WITHOUT PRIOR INTIM ATION/NOTICE TO THE SAID TRUSTEE AND WITHOUT CITING ANY REASON. IF THE WORK OF THE ANY TRUSTEE IS NOT SATISFACTORY AND/OR AGAINST THE PUBLIC POLICY ITA NO.630/BANG/2015 PAGE 9 OF 11 AND TRUST INTERESTS HE SHALL BE IMMEDIATELY REMOVED FROM THE TRUST. 5. THE TRUSTEES WILL SERVE THE TRUST AS PER DIRECT ION OF THE BOARD OF TRUSTEE AND THE TERMS AND CONDITIONS OF TH E TRUST. 6. THE TRUSTEES WILL FOLLOW ALL THE TERMS AND COND ITIONS OF THE TRUST AND THEY WILL SAVE THE TRUST ACCORDINGLY. 7. THE OFFICE OF THE TRUSTEE SHALL BECOME VACANT O N THE HAPPENING OF THE FOLLOWING EVENTS: A. DEATH OF TRUSTEE. B. PHYSICAL OR MENTAL INEFFICIENCY OF A TRUSTEE. C. RESIGNATION OF THE TRUSTEE. D. ON BEING RENDERED INCAPABLE TO PERFORM THE DUTI ES OF THE TRUST. E. IN BEING CONVICTED OF ANY SERIOUS CRIMINAL OFFE NCE INVOLVING MORAL TURPITUDE. F. ON BEING ADJUDGED INSOLVENT. (APB-12) 13. FIRSTLY, IT IS NOT THE LEARNED CITS PURVIEW T O GO INTO SUCH ASPECTS WHILE CONSIDERING THE REGISTRATION OF A TRU ST. AS NOTED ABOVE, U/S 12AA, THE ONLY THING IS TO BE SEEN IS TH E CHARITABLE OBJECTS AND THE GENUINE ACTIVITIES OF THE TRUST. OT HERWISE TOO, IT IS SEEN THAT THE POWERS OF THE TRUSTEES EVINCE THAT IF ANY TRUSTEE VIOLATES THE DUTIES AND COMMITS UNLAWFUL ACTS BEYON D THE RULES OF THE TRUST, HE WOULD BE FULLY LIABLE FOR THE SAME. T HE BOARD OF TRUSTEES HAS BEEN EMPOWERED TO REMOVE TRUSTEES OTHE R THAN THE FOUNDER TRUSTEES, IF THEIR WORK IS NOT SATISFACTORY AND/OR AGAINST PUBLIC POLICY AND THE INTEREST OF THE TRUST. WE FIN D NOTHING WRONG WITH SUCH POWERS OF THE BOARD OF TRUSTEES. OBVIOUS LY, IF A TRUSTEE ACTS AGAINST THE INTEREST OF THE TRUST OR AGAINST P UBLIC POLICY, HE INVITES REMOVAL FROM THE POST. ITA NO.630/BANG/2015 PAGE 10 OF 11 11. THE TRIBUNAL HELD THAT IT IS NOT IN THE PURVIEW OF THE CIT TO GO INTO SUCH ASPECTS WHILE CONSIDERING REGISTRATION OF TRUS T. WHAT IS REQUIRED TO BE SEEN IS ONLY THE CHARITABLE NATURE AND ACTIVITIES O F THE TRUST FOR THE PURPOSE OF GRANTING REGISTRATION U/S. 12AA OF THE ACT. 12. IN VIEW THE ABOVE FACTS AND CIRCUMSTANCES OF TH E CASE, WHEN THE CHARITABLE OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES OF THE TRUST HAS NOT BEEN DOUBTED BY THE LD. CIT(E), THEN BY FOL LOWING THE DECISIONS OF THE COORDINATE BENCHES OF THE TRIBUNAL, WE SET ASID E THE IMPUGNED ORDER OF THE LD. CIT(E) AND DIRECT THE LD. CIT(E) TO GRANT R EGISTRATION U/S. 12AA OF THE ACT. 13. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF FEBRUARY, 2016. SD/- SD/- ( ABRAHAM P. GEORGE ) (VIJA Y PAL RAO ) ACCOUNTANT MEMBER J UDICIAL MEMBER BANGALORE, DATED, THE 10 TH FEBRUARY, 2016. /D S/ ITA NO.630/BANG/2015 PAGE 11 OF 11 COPY TO: 1. APPELLANT 2. RESPONDENTS 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.