9911796707
TMI Blog2012 (9) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... der : The Assessee had filed an application on 31.05.2007 for grant of registration under section 12A(a) of I.T. Act 1961 Order under section 12AA(1)(b)(ii) of I.T. Act 1961 was passed on 30.11.2007 vide this office order No. CIT-I/Ldh/Tech/12A/14/2007-08/6910-12 vide which the Registration request was rejected. The assessee had filed an appeal against this order before the Income Tax Appellate Tribunal, Chandigarh Benches, Chandigarh on 1.6.2011 in I.T. appeal No. 509/Chandi/2011. The Hon'ble ITAT, Chandigarh had observed that the impugned order was passed in hasty manner without affording adequate opportunity of being heard to the assessee. Also that no report of the A.O. and the Joint Commissioner of Income Tax, Range-II, Ludhiana is con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as expulsion shall only be made at least be three-fourth of the Trustees." c) The assessee is registered under the Societies Act and was also registered under the Trust Act as Public Trust. 6. The CIT on considering the matter, observed as under: a) As per documents submitted by the assessee's counsel, the sum of Rs. 13,00,000/- is shown to have been given on 16.03.2011 to Shri Jasbir Singh, Trustee and it was not deposited till the last date of hearing on 20.12.2011. This amount continues to be with him since 16.03.2011 till it was not deposited even on 02.12.2011 ( A period of more than 9 months). The said amount was supposed to be invested in the modes specified in section 11(5). In this view of the matter, an untrue certificate u/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the present appeal is registration allowable to a trust under section 12AA of the Act. In order to avail the benefit of deduction under section 11 and 12 of the Act, it is mandatory that the trust or organization should be registered by way of filing application under section 12A of the Act, consequent to which the CIT on being satisfied that the activities of the trust are charitable and are genuine shall pass an order registering the trust under section 12AA of the Act. 12. The scope of powers of the C IT for Registration of Trust (supra) u/s 12AA has been elaborated upon by the Punjab & Haryana High Court in C IT- II, Chandigarh Vs. Surya Educational & Cheritable Trust (supra) wherein it has been held as under As per section 12AA an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the earlier provisions of section 10(22) as to which income shall not be included in computing the total income of any person. Therefore, the provisions of sections 11, 12 or section 10(23C) deal with the income of a trust or of the institution and the circumstances as to when such income is to be excluded for computing the total income, but the basis of such benefit is the registration under section 12AA. Unless a trust or institution is registered under section 12AA, such trust or institution shall not be entitled to exclude from its total income, deductions or contributions or from other sources. Therefore, the principles laid down for excluding the income from consideration under section 10(22) now 10(23)(C) or sections 11 and 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned A.R. for the assessee agreed. However, the same was rejected on invocation of Section 13(1)(ii) of the Act and lifelong membership of the trustees and assessee being both society and Trust. 14. Applying the principles laid down by the Hon'ble Punjab & Haryana High Court in Surya Educational & Charitable Trust, we find that the C IT while granting registration U/S 12AA of the fact is to look into the objects of the Trust and whether the Trust is carrying on the said objects of the Trust. The Objects of the present assessee Trust were in the line of Education and the assessee was running both school and college. Once a Trust is engaged in the activities of providing Education by way of setting up school and college, which is one of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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