9911796707
TMI Blog2012 (2) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961. The action of the ld. CIT is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by directing the ld. CIT to grant the registration u/s 12AA. 2. The Trust filed an application in form No.10A for seeking registration u/s 12AA of the I.T. Act on 10.12.2010. The ld. CIT provided an opportunity to the assessee to explain the objects of the trust and to show the genuineness of activities of the Trust. The object of the Trust is to support students for education, medical relief, to support widows to support marriage of daughters of economically weaker sections of the society. From the activities of the trust, the ld. CIT noticed that it has provided scholarship to needy poor stud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 12AA: "The Commissioner, on receipt of an application for registration of a trust or Institution made under clause (a) of section 12A, shalla Call for such documents or information from the trust or institution as the thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such a inquiries as he may deem necessary in this behalf; and b. After satisfying himself about the objects of the trust or institution 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmissions and these are reproduced as under: In this respect, it is submitted that at the time of granting registration u/s 12AA, the CIT is required to satisfy himself about the objects of the trust and the genuineness of activities. While satisfying himself about the objects of the trust, the CIT has to examine whether as per section 11 of the I.T. Act, the property of the trust has been held wholly for charitable or religious purposes or not. While examining the genuineness of the activities, CIT has be examine if the activities are being carried out as per the objects of the trust and as per the requirements of section 11 or not. In this case, the assessee trust has claimed that it is a charitable trust and its objects involve providin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee trust violated the provisions of section 13 (1)(b) and was not eligible for registration u/s 12AA. In the case of the assessee trust under consideration in this appeal though the trust is created for charitable purposes and its objects are open for the benefit of all but in practice, it is found that the benefits are being provided to the students of only "Jain" community. In the case of Shri Dhakad Samaj (supra), the allowing of concessional facilities to one community/caste as compared to others was treated as violative of provisions of section 13(1)(b). Hence, in the case of our assessee also providing scholarship to students of only one community should be treated as violative of the provisions of section 13(1)(b) and the registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institute Samiti Kota 140 TTJ 508 (JP) Shiya Dawoodi Bohra Jamat V CIT 133 ITD 271 (Ahm) 9. The Hon'ble jurisdictional High Court in the case of DCIT V/s Cosmopolitan Education Society 244 ITR 494 has referred to the observation of ld. CIT (A) in which it was mentioned that if there was any misutilisation or mismanagement then action should be taken against the members of the society but from the records it was established that any amount of funds were not utilized for educational purposes. In the instant cases, scholarships have been given to poor students and it is not a case that scholarships were given to a student who was not poor. 10. We therefore feel that ld. CIT will allow registration u/s 12AA from the first day of the financi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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