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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 ..... hat the Trust failed to convince him about the genuineness of the activities. That is what unfortunately the Commissioner did in the present case. The Commissioner in the present case did not dispute about the charitable activities as indicated in the object clause of the assessee & in case where the assessee trust did not start charitable activity at the time of granting registration, the same can be verified from the object clause. In that view no error in the Tribunal’s impugned order reversing the order of the Commissioner who merely on the ground that the activities of the Trust had not commenced persuaded to reject the application for registration - in favour of assessee. - Tax Appeal No. 918 of 2011 - - - Dated:- 10-12-2012 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The reply of the assessee trust is not acceptable. The trust has not submitted any documentary evidence regarding its activities. As a result of this, the department is totally in dark as to the actual activities carried out by the Trust since inception. Since, there is nothing on record from which the genuineness of the activities of the assessee trust could be established, I hereby reject the assessee s application for registration under Section 12A(a). 2.2 Such order of the Commissioner was carried in appeal by the assessee before the Tribunal. The Tribunal, by its impugned order, allowed the appeal making following observations : 6. I have heard the learned representatives of the parties, record perused and gone throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust. In the case under consideration, the Commissioner did not dispute about the charitable activities as indicated in the object clause of the assessee. On perusal of orders of the Commissioner of Income-tax I find that the Commissioner was of the view that since there was no activity the assessee did not satisfy the condition about the genuineness of the activities, which in my view, is not correct. When there are no activities at all, then there is no question of holding that the activities were non genuine. The genuineness of the activities only can be verified when there is some activity. In case where the assessee trust did not start charitable activity at the time of granting registration, the same can be verified from the object c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for registration of a trust or institution made under clause (a) or clause (aa) of subsection (1) of Section 12A, shall- (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceipt of an application for registration of a Trust or Institution under Section 12A(1) (a) of the Act, the Commissioner would call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf. After satisfying himself about the objectives of the trust or institution and the genuineness of its activities, the Commissioner would pass an order in writing registering a trust or institution, and if he is not satisfied, would pass an order in writing refusing the registration of the trust or institution. 5. It can thus be seen that under Section 12AA of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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