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TMI Blog2010 (4) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... condition for grant of registration that the institution is supposed to carry out a charitable trust for entire 12 months nor is there a requirement which states that the minimum number of activities a trust is required - Held that Commissioner of Income-tax was not justified in rejecting the application for registration - Hence impugned order is set aside and the trust is allowed to get registered u/s 12AA - Commissioner of Income-tax is further directed to verify the application of the appellant seeking approval under section 80G(5)(vi) of the Act - Appeal is allowed. - ITA NOS. 159 AND 160 (JP.) OF 2010 - - - Dated:- 30-4-2010 - SHRI I.C. SUDHIR, AND SHRi N.L. KALRA, JJ. Represented by: Siddharth Ranka and N.K. Baid for the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Commissioner of Income-tax has held that the appellant is not eligible for registration under section 12AA and has rejected the application seeking registration. He also did not allow the application of the appellant seeking approval under section 80G(5)(vi) of the Act. 4. The contention of the learned authorised representative before us remained that the finding of the learned Commissioner of Income-tax is not true and correct as at no point of time, the learned Commissioner of Income-tax has confronted the appellant-trust that it had not undertaken any genuine activities or it has not furnished income and expenditure account. Thus the order impugned has been passed without giving a reasonable opportunity to the appellant and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect that the activities will begin immediately. By and large the activities shall commence after the grant of registration under section 12AA and exemption under section 80G(5)(vi). The learned authorised representative referred to rule 17A of the Income-tax Rules 1962 in support of his contention that the rule itself states that the requirement of filing of accounts is necessary only and only if 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. He submitted that the appellant-trust has been formed in the current year itself, thus there was no requirement of filing of any income and expenditure account. The learned authorised representativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o hold that the trust is not entitled to registration, even though its objectives are charitable. In the case of Ashutosh Dawar Trust (supra), the Delhi bench of the Tribunal has held that at the stage of registration, authority may have before it only objects which are to be carried out and not actually being undertaken and therefore grant of registration does not ensure benefit of sections 11 and 12 since that would be subsequent stage when activities are undertaken with reference to document by which trust or institution is created/set up. 6. Under these circumstances, the learned Commissioner of Income-tax was not justified in rejecting the application for registration on the basis that the appellant had not carried out any charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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