2015 (5) TMI 1166 - AT - Income Tax

Non registering the applicant Trust u/s 12 AA - Charitable activity u/s 2(15) - new formality of registration was not completed at relevant point of time - Held that - We find that society was registered with the Registrar of society vide Registration No. 629 dt. 08/07/1996. This fact has been mentioned by the Commissioner in the first Para of his order. In any case there is no requirement u/s 12AA that society should be registered. Simply because new formality of registration was not completed at relevant point of time cannot be a ground for not granting registration under section 12AA. It is settled position of law that at the time of registration the Commissioner is required to only examine the objects of the society which in the present case is to render education. Therefore in our opinion the registration is wrongly denied. Accordingly he set aside the order of Commissioner and grants registration to the society. - Decided in favour of assessee.

Summary

Issues: Appeal against the refusal of registration under section 12AA for a Trust.

Analysis:
1. The Assessee appealed against the decision of the Commissioner of Income Tax (CIT) who refused to register the Trust under section 12AA. The Assessee contended that the registration was denied due to a backlog with the Registrar of Societies, even though the Trust had applied for registration. The Assessee argued that the Commissioner only needed to verify the charitable nature of the Trust's objects, citing relevant court decisions.

2. The Commissioner was not satisfied with the genuineness of the Trust's activities and noted that the Trust was not registered under the new Haryana Registration & Regulation of Societies Registration Act, 2012. However, it was revealed that the Trust was registered with the Registrar of Societies in 1996. The Tribunal emphasized that there is no requirement under section 12AA for the Trust to be registered under the new Act. The Tribunal held that the Commissioner's role is to examine the charitable nature of the Trust's objects, which, in this case, was to provide education. Consequently, the Tribunal set aside the Commissioner's order and granted registration to the Trust.

3. The Tribunal found that the issues raised in another appeal by the Assessee were identical to the present appeal. Referring to its earlier decision, the Tribunal ruled in favor of the Assessee in both appeals. As a result, both appeals were allowed, and the Trust was granted registration under section 12AA.

This judgment highlights the importance of examining the charitable nature of a Trust's objects for registration under section 12AA, emphasizing that registration cannot be denied solely based on procedural formalities.