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TMI Blog2013 (6) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. The Director of Income-tax(Exemption) issued a standard questionnaire dated 8.10.2012 and also requested for furnishing details on specific points and produce books of account, bills and vouchers for verification on 9.11.2012. Vide para 2 of the impugned order, the Director of Income-tax(Exemption) noted that the assessee has not commenced any activity and therefore, it is difficult to grant registration as applicant-trust has not carried any activity. These observations of the Director of Income-tax(Exemption) in para 2 are as under- "2. Vide query No.2 of the questionnaire, it was asked to furnish a note on precise activities undertaken by the trust with evidences for the same. In response to the same, under point No.32 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax(Exemption), the learned counsel placed on record a paper-book containing pages 1 to 116, to submit that the learned Director of Income-tax(Exemption) did not examine the objects of the trust, nor examined any other issue relevant for grant of registration. Referring to the paper-book, it was submitted that the assessee replied to the questionnaire issued by the Director of Income- tax(Exemption), and furnished copy of the trust deed, details of the trustees, PAN card of the trustees and also upto date bank account statement, viz. upto 16.11.2012, when the case was posted for hearing. It was also further submitted that major details of donors, viz. their addresses, cell numbers, PAN numbers, in respect of corpus fund donations and detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it filed application for registration. Instead of examining the objects of the trust for registration, the Director of Income-tax(Exemption) rejected the registration. Similar issue was considered by the Hon'ble Delhi High Court in the case of Director of Income- tax(Exemption) V/s. Foundation of Opthalmic & Optometry Research Education Centre (supra) and it was held as under- "9. The provision in this case i.e. Section-12A states that when a Trust is desirous of getting itself registered as charitable, it has to approach the Commissioner under Section-12AA. The powers of the Commissioner to register or refuse the application are expressly spelt out in Section-12AA itself. Rule-12AA (b) reads as follows: Section 12AA. PROCEDURE FOR RE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acially, the above provision would suggest that there are no restrictions of the kind which the Revenue is reading into in this case. In other words, the statute does not prohibit or enjoin the Commissioner from registering Trust solely based on its objects, without any activity, in the case of a newly registered Trust. The statute does not prescribe a waiting period, for a trust to qualify itself for registration. 11. If the Revenue's contentions are correct then, necessarily, a condition would have to be read in to the provision that the Commissioner should be satisfied that the Trust is in fact engaged in charitable activities which would in turn inject considerable deal of subjectivity. It is quite possible that if such flexibility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax(Exemption) V/s. Meenkashi Amma Endowment Trust (supra), their Lordships held as under:- "4. The Tribunal taking into consideration the law laid down by the Division Bench of this Court in Sanjeevamma Hanumanthe Gowda Charitable Trust vs. Director of IT (Exemption) (2006) 203 CTR (Kar) 533 : (2006) 285 ITR 327 (Kar) held that depending upon the facts and circumstances, the concerned authority has to look to the objects and also the activities of the trust in order to consider the application for registration under s.12A of the Act and accordingly allowed the appeal by order dt.20th Nov., 2009 and directed the Director of IT (Exemptions) to grant recognition to the trust if other conditions are satisfied. 5. On perusal of reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities concerned to withdraw the registration already granted or cancel the said registration under s.12AA (3) of the Act." 9. In the case before us, the Trust approached the Director of Income- tax(Exemption) for registration within two months of its creation/formation, and therefore, the objects of the trust for which it was formed will have to be examined by the authority. The registration authority should consider the genuineness of the aims and objects of the applicant society seeking registration under S.12AA of the Act with a charitable objective. At this stage, commencement of the charitable activity cannot be the criteria, since the trust is yet to commence its activities. In spite of that, the assessee trust in the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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