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TMI Blog2012 (12) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... facts stated are as under : 2.1 The respondent-assessee had made an application for registration under Section 12A(1)(a) of the Income tax Act, 1961 ["Act" for short] in prescribed form. The Commissioner, however, by his order dated 29th September 2010 rejected such application for registration. In his said order, he noted that from the Trust Deed, it emerges that the objectives of the Trust are mainly religious. The Commissioner had issued a letter to the Trust calling upon the Trust to produce evidence regarding expenses incurred towards the objects of the organization and on activities carried out since its inception. In response to such letter, it was submitted on behalf of the Trust that there were no activities till 31st March 2010 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the prescribed period. Section 12AA provides the procedure for registration. The said section provides that Commissioner on receipt of an application for registration of trust shall call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of the activities of the trust and may also make such enquiries as he may deem necessary in this behalf and after satisfying himself about the object of the trust and the genuineness of the activities, he may pass such order in writing registering the trust or refusing the registration of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereof provides that provisions of Sections 11 & 12 shall not apply in relation to the income of the Trust or institution unless (a) the person in receipt of the income has made application for registration of the Trust or institution in the prescribed manner before the Commissioner before 1st day of July 1973 or before the expiry of period of one year from the date of creation of the Trust or institution; whichever is later and such Trust and Institution is registered under Section 12 AA of the Act. 3.2 Thus, to avoid applicability of Sections 11 & 12 of the Act, a Trust would have to make an application for registration before the Commissioner before expiry of period of one year from the date of its creation and such Trust would have t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has been passed under clause (b) of subsection (1) before the 1st day of June 1999, shall stand transferred on that day to the Commissioner and the Commissioner may proceed with such applications under that subsection from the stage at which they were on that day]. (2) Every order granting or refusing registration under clause (b) of subsection (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) of subsection (1) of Section 12A. (3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) and sub-sequently the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation from the trust as he think are necessary. However, this does not mean that if the activities of the trust have not commenced, the Commissioner has authority to reject its application for registration on the ground that the Trust failed to convince him about the genuineness of the activities. That is what unfortunately the Commissioner did in the present case. In that view of the matter, we see no error in the Tribunal's impugned order reversing the order of the Commissioner. It is of course true that even if the activities of the trust have not commenced, if the Commissioner has sufficient material in his command, he may still come to the conclusion that he is not satisfied about the objectives of the Trust or the genuineness of its a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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