9911796707
TMI Blog2009 (3) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... s not filed in time i.e., within one year from the date of creation of the society. The assessee had only submitted uncertified copies of Memorandum of Association along with application in Form No. 10A. The CIT vide letter dated 17-5-2005, requested the assessee to furnish certified copy of instrument of creation/trust deed, copy of income and expenditure account, balance sheet for the last three years as required under section 12A of the Income-tax Act, read with rule 17A of the Income-tax Rules. The assessee was asked to file the reply within 15 days of receipt of this letter. The assessee furnished the reply and details on 6-12-2005. The CIT on perusal of income and expenditure account for the year ending 31-3-2002, 31-3-2003 and 31-3-2004 noted that the institution had incurred very negligible amount on the object of the Trust and balance has been incurred on establishment. The assessee furnished the details of expenditure incurred on the objects of trust along with vouchers. The CIT noted that the assessee had incurred expenditure of only Rs. 25,860 out of income of Rs. 3,11,240 in the year ending 31-3-2002, expenditure of Rs. 6,500 out of income of Rs. 78,138 in the year end ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Society for the Promotion of Education Adventure Sport & Conservation of Environment v. CIT [2008] 171 Taxman 113 (All.). The second proposition raised by the ld. AR was that CIT while granting the registration has to look into its objectives and the genuineness of the Trust and not the level of activity carried on by the assessee. Our attention was drawn to the objects of the Trust at page 4 of the paper book and also the meaning of the genuineness, which means it should be real. The ld. AR conceded that no benefit would arise for the earlier years when no application was moved and the benefits would only arise from the date of the application or date of order. The ld. AR pointed out that the objects of the Trust were for general public and as the persons from one religion are staying in the locality the same are benefited but the level of activity cannot be the basis whether the trust is genuine. The third proposition proposed by the ld. AR was that in case the order of the CIT was correct then though the activity carried on by the assessee was small but there was nothing to suggest that the trust was not genuine. The ld. DR pointed out that the assessee has failed to give any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a)call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b)after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he- (i)shall pass an order in writing registering the trust or institution; (ii)shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant: Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. (1A) All applications, pending before the Chief Commissioner on which no order has been passed under clause (b) of sub-section (1) before the 1-6-1999, shall stand transferred on that day to the Commissioner and the Commissioner may proceed with such applications under that sub-section from the stage at which they were on that day. (2) Every order granting or refusing registration under clause (b ) of sub-section (1) shall be passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( ii) of the Act are applicable. The next condition to be fulfilled is filing of the requisite particulars/documents along with the application. The application filed by the assessee was not accompanied by the requisite documents. The assessee had filed the incomplete application on 22-11-2004. The period of six months available to CIT for passing the order ends in May, 2005. The CIT vide letter dated 17-5-2005 requisitioned the assessee to furnish the information as required under section 12A of the Act. The said information was furnished by the assessee on 6-12-2005. 9. The Hon'ble Punjab and Haryana High Court in CIT v. Sohan Lal Chhajan Mal (supra) have held that in case the defective return of income is filed by the assessee and on removal of defects it relates back to the date on which the application was made. The assessee herein had not enclosed the requisite documents along with the application but once the same have been filed by the assessee, it relates back to the date on which the application was moved by the assessee. 10. The requirement of section 12AA of the Act is that the order granting or refusing the registration is to be passed by the CIT within six months fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the time limit provided under the Act. 12. The Delhi Bench of Tribunal in Dharma Sansthapak Sangh (Niyas) v. CIT [2008] 118 TTJ (Delhi) 823 have held that where the objects of the applicant trust were to carry on religious activities, the same could be construed to be charitable activities and carrying on of such activities at the stage of the commencement is not relevant to decide whether such trust/institution is entitled for registration. 13. The CIT while rejecting the registration of the assessee before us had questioned the objects of the trust and the genuineness of the activities carried on by the assessee. In line with the ratio laid down by the Delhi Tribunal in Dharma Sansthapak Sangh (Niyas) (supra), we find no merit in the observations of the CIT regarding the genuineness of the activities carried on by the assessee. 14. Following the ratio laid down by the Special Bench in Bhagwad Swarup Shri Shri Devraha Baba Memorial Shri Hari Parmarth Dham Trust (supra), as the CIT in the present case has failed to initiate the enquiry in-time to complete the process of grant of registration within the stipulated period of six months and as the order has not been passed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
