9911796707
TMI Blog2004 (12) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee society is old and the application filed in Form No. 10A is late for which no reasons whatsoever have been advanced. (ii) It has not given a certified copy of the original instrument under which it was established. It has given only a photocopy of the same attested by the authorized representative. (iii) It has enclosed copies of account only for the year ending 31-3-2001, but has refrained from giving copies of account for earlier years on the plea that it was a defunct society for which no corroborative evidence has been furnished. (iv) Photocopies of income and expenditure statement and balance sheet submitted for the year ending 31-3-2001 have not even been attested to be true copies. (v) The society has neither shown receipt of the fees chargeable from its members as per the conditions of the membership nor the same has been shown as receivable in the financial statements for the year ending 31-3-2001. The said financial statements, therefore, does not reveal the true state of affairs of the assessee society. 3. Further, the learned CIT also pointed out certain aspects relating to the genuineness of the activities being carried on by the assessee society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee before the Tribunal stating therein that the said delay was attributable to serious ailment of its local counsel Shri V.K. Sharma. On merits, he submitted that the assessee society was established for the purpose of promoting education in the general public as well as for establishing and running a college of higher learning in technical education in the name of 'Somani Institute of Technology Management'. He submitted that the assessee society was established in 1993-94 and the membership subscription of Rs. 23,100 was also collected in the said year from 11 members of its governing body. He contended that the said amount, however, was spent for the purpose of providing books and stationery to poor students as well as miscellaneous expenses and the same was written off in the books of account instead of capitalizing. He submitted that the society remained inoperative after 1993-94 till 1999-2000 for various reasons and its activities were revived again in the year 2000-2001 when it decided to set up an institution to impart engineering and technical education. 6. The learned counsel for the assessee then proceeded to explain/clarify the various deficiencies and defects ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. The learned DR, on the other hand, submitted that the procedure for registration of a trust is laid down in section 12AA and as per the provisions contained therein, the learned CIT can go into genuineness of the activities of trust to satisfy himself that the same are in furtherance of its objectives. He contended that his satisfaction in this regard is important and if he is not satisfied about the genuineness of the activities of the trust, he is within his powers to refuse to grant the registration as has been done in the present case. He submitted that enquiry in the present case was made by the learned CIT through Assessing Officer in the activities of the assessee society and having found that the same were not genuine in conformity with its objectives, the learned CIT had refused to grant registration by his impugned order passed under section 12AA giving Cogent and relevant reasons. He submitted that even the requirements in connection with the filing of application under section 12A were not fully complied with by the assessee as per the relevant rules which again resulted in the refusal of registration to the assessee society by the learned CIT. He pointed out that c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shment of the institution, together with one copy thereof: Provided that if the instrument or document in original cannot conveniently be produced, it shall be open to the [Chief Commissioner or Commissioner] to accept a certified copy in lieu of the original; (b) where the trust or institution has been in existence during any year or years, prior to the financial year in which the application for registration is made, two copies of the accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up." 9. On receipt of the aforesaid application for registration of trust, the Commissioner is required to deal with the same as per the procedure for registration laid down in section 12AA, sub-section (i) of which being relevant, is reproduced below:- "12AA(1). The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) of section 12A, shall- (a) call for such documents or information from the trust or institution as he thinks necessary in order) to satisfy himself about the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs/observations recorded in his impugned order. Firstly, he found that the assessee society's objective was to provide free education to the children of economically backward people as well as that of the widows whereas the establishment of 'Somani Institute of Technology Management' undertaken by it was found to be based on the payment of fees which was not in conformity with its objectives. He also found that the assessee society had paid a sum of Rs. 25,000 as donation to Somani Asha Nand Ashram which again was not covered by the objects of the society. Further, he also noted that the land given by the members of the Somani family for use to the assessee society was not appearing as its asset despite the fact that a huge sum of Rs. 6,70,115 was spent by the assessee society on conversion of the said land into non-agricultural use. He also observed that substantial cash balance in hand was maintained by the assessee society which again was available to the office bearers who were closely connected with Somani family. Before us, the learned counsel for the assessee has submitted that the said cash was subsequently deposited in bank in the name of the assessee society. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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