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TMI Blog2012 (11) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... is directed to allow Registration to the assessee-trust under section 12AA(a) of the Act. Thus, all the grounds of the assessee are allowed. - I.T.A. No.453(Asr)/2011 - - - Dated:- 30-7-2012 - SH. H.S. SIDHU AND SH. B.P.JAIN, JJ. Appellant by:Sh. R.K. Gupta, CA Respondent by: Sh. Laxman Singh, CIT(DR) ORDER PER BENCH ; This appeal of the assessee arises from the order of the Ld. Commissioner of Income Tax ( In short CIT ), dated 20.07.2011 against the order passed under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 ( In short the Act ). 2. The assessee has raised following grounds of appeal: 1. That the worthy CIT is not justified in refusing to grant registration to the appellant Trust under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lization of all the objects of the trust. The counsel of the assessee trust was requested to explain as to how the case of his client was not covered by the order of the Hon ble Uttarakhand High Court in the cases of CIT vs. Queens Education Society, Haldwani and CIT vs. St. Paul s Sr. Secondary School, Kathgodam dated 24.09.2007. In response to above, the assessee filed a written reply mainly relying on the decision dated 29.01.2010 of Hon ble Punjab Haryana High Court in the case of Pinegrove International Charitable Trust vs. Union of India. It is worthwhile to mention that the department has not accepted the above decision of the Hon ble Punjab Haryana High Court and has filed Special Leave Petition SLP(C) No.5381/2011 before the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Queens Educational Society (supra) by the Ld. CIT, the Ld. counsel for the assessee invited our attention to the decision of the Hon ble Punjab Haryana High Court in the case of Pinegrove International Charitable Trust Ors. Vs. Union of India Ors. (2010) 327 ITR 73 dated 29th January, 2010, where the Hon ble Punjab Haryana High Court has not accepted the views expressed by the Division Bench of the Hon ble Uttarakhand High Court in the cases of CIT vs. Queens Education Society (supra) for the reasons mentioned therein. The Hon ble Punjab Haryana High Court in the case of Pinegrove International Charitable Trust Ors. Vs. Union of India Ors.(supra) has held that at the initial stage when the application for exemption is filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been held that the jurisdiction of the Commissioner at the stage of processing application u/s 12AA of the Act is limited regarding whether the activities are genuine and in consonance with the objects of the trust or institution and where education is being imparted as per the rules and the factum of the establishment and running of schools is not disputed the same was a genuine activity and the enquiry regarding genuineness of the activities cannot be stretched beyond this. 6. The Ld. CIT(DR) Mr. Laxman Singh, on the other hand, invited our attention to the Trust Deed that the assessee cannot amend the Trust Deed without due course of law in which the assessee has changed the Trust Deed etc. It was pointed out that it is a family tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust was undertaking at present and also which it may contemplate to undertake. In the present case, the Ld. CIT has not brought on record that any of the activities of the Trust is not genuine or Trust had contemplated to undertake any non genuine activity for non charitable or non educational activities. Therefore, the jurisdiction of the ld. CIT at the stage of processing application under section 12AA of the Act is limited to whether the activities are genuine and in consonance with the objects of the trust or institution and where education is being imparted as per the rules and the factum of the establishment and running of schools is not disputed, then the activity is said to be genuine activity and the enquiry regarding genuinenes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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