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TMI Blog2011 (12) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER RAJPAL YADAV : The present two appeals are directed at the instance of assessee against the separate orders of Ld. Director of Income Tax (Exemption) Delhi dated 8th July, 2011 vide which Ld. DIT has rejected the applications of the assessee for grant of registration u/s 12A as well as u/s 80G(5) of the Income Tax Act. First we take ITA No. 3863/Del/11 2. The grievance of the assessee in this appeal is that Ld. DIT has erred in rejecting the application for registration u/s 12AA (1)(b) of the Income Tax Act. The brief facts of the case are that assessee has filed an application on 5th January, 2011 in Form No. 10A for seeking registration u/s 12A of the Income Tax Act, 1961. Ld. DIT had issued a show cause notice inviting explanation of the assessee vide letter dated 27.1.2011. Such explanation was tobe submitted by 21.2.2011. On 21 st February, 2011, the Chartered Accountant of the assessee appeared before the Ld. DIT and took adjournment. According to the Ld. DIT, number of adjournments were taken by the assessee and it failed to submit the details. Whereas case of the assessee is that it has submitted all the requisite details called for by the Ld. DIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On 7.3.2011 neither anybody attended nor any details were filed. On 15.4.2011 CA of the assessee sent a letter for adjournment of the case and the case was adjourned to 29.4.2011. On 29.4.2011 neither anybody attended nor any further details were filed. 3. On perusal of details filed it is seen that on page 10 11 clauses 15 16 respectively of the trust deed show that the applicant s activities have a profit motive as leasing out properties on rent and collection of rents effects and profits do not show the intention of charity. It has no dissolution clause also. The main objects as per trust deed is to maintain, set up and run cancer research centres to carry out medical research in the field of oncology and other medical facilities which requires a good infrastructures and expertise on the part of people associated with it is found missing in this case. It has not disclosed the method of attaining the said objects. The applicant has submitted that it will take up some time to start its activities. It also stated that ground level activities like lie up (i) with hospital medicals Institute (ii) NGOS and other charitable Institutes for cancer and (iii) spreading awareness is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions received by it would be taxable in the absence of the registration. He further pointed out that section 12AA sub section 3 has also been amended. It empowered the Ld. Commissioner to withdraw registration granted earlier, if it is established that activities of such trust are not genuine or are not carried out in accordance with the objects of the trust. In the old scheme this power was not there. According to the Ld. Counsel for the assessee, the scheme of section 12A and 12AA suggest that Ld. Commissioner has to see prime facie genuineness of the activities as well as aims and objects contained in the trust deed. The Ld. Counsel further submitted that charitable institutes are being caught in such a position that if they received donation and try to start the activities then in the absence of registration the receipt would be taxable. Because benefit of 11 12 will not be there, but if an assessee applied for grant of registration u/s 12A, then Ld. Revenue Authority would emphasis first start the activities, demonstrate how the activities are genuine and of charitable nature. He relied upon the decision of Hon ble Karnataka High Court in the case of DIT vs. Garden City Educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... education activities relating to the field of oncology; To promote and sponsor programs for fund raising for supporting (a) treatment of cancer patients particularly those belonging to poor strata of society (b) cancer detection programs and awareness rallies and (c) research programs on improving cancer treatment methods; 5. Ld. DIT observed that in order to fulfil these aims and objects, assessee was enable to produce supporting materials. Therefore, its activities are not genuine. Thus the substance of the order is that assessee failed to bring concrete evidence in support of its activities required to be performed. In the paper book, assessee has placed on record the details of aids given by it to the needy persons for conducting the investigation of cancer. One of the beneficiary is Mrs. Sushma Chaudhary, B-86, Nand Gram, Sarkari Colony, Ghaziabad and other one is Mr. Murli Dhar, H. No. 190 Noida, UP. They indicate that whatever little means that assessee has, it is performing its work in the direction of its aims and objects. Therefore, on an analysis of all these details, we are of the view that for the purpose of granting registration u/s 12A, Ld. DIT has to form a pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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