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TMI Blog2013 (8) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... : Mrs. Mauna M. Bhatt. ORDER:- PER : Ms. Sonia Gokani Aggrieved by the order of the Income Tax Appellate Tribunal dated 20.07.2012, this Tax Appeal is preferred under Section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). 2. The brief facts leading to filing of the present Tax Appeal are as follow. 2.1 The applicant-Trust preferred an application under Section 12A of the Act for registration of the Trust on 25.01.2012 in Form No.10A. This application had contained certificate of registration by the Deputy Charity Commissioner and copy of the Trust deed with comprehensive list of objects. When the applicant was asked to furnish a detailed note of actual activities of the Trust from its inception, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant registration on application under Section 12A and 12AA of the Act. 2.3 Being aggrieved by the said decision, the revenue has preferred this Tax Appeal raising following substantial questions of law: "(A) "Whether the Appellate Tribunal has substantially erred in law and on facts in applying the provisions of section 12AA(1) of the Income-tax Act observing that if the trust/institution is in infant stage then no verification of genuineness of activities is required?" (B) "Whether or not, the words in section 12AA(1) "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 or institution and may also m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave 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 to be registered under Section 12AA of the Act. 3.3 Section 12AA of the Act pertains to procedure for registration. Sub-section (1) thereof, which is relevant for our consideration, reads as under :- '12AA. Procedure for registration - (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) or clause (aa) of sub-section (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution : Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.' 4. Upon perusal of the provisions of sub-section (1) of Section 12AA of the Act, it emerges that upon receipt 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 sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal accordingly. 6. In the present case, however, merely on the ground that the activities of the Trust had not commenced, the Commissioner was persuaded to reject its application for registration, which in our opinion, was not appropriate and therefore, rightly interfered by the Tribunal." 5. As can be noted in the instant case also, for availing benefits under Sections 11 and 12, the Trust made an application under Sections 12A for registration u/s. 12AA before the Director of Income-tax (Exemption). It also further emerges that Commissioner since is required to call for documents and information from the Trust if he deems it necessary in order to satisfy about the genuineness of the activities of the Trust, he, in this case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in the Statute. With regard to activities of the Trust, after once registration is granted under clause (b) of Sub-section (1) of Section 12AA or under Section 12A, Commissioner, in the event of any its conclusion that activities of Trust are not genuine or not being carried out in accordance with the objects, can direct cancellation under Sub-section (3) of Section 12AA. In other words, the registration once granted can always be cancelled if the activities of the Trust are found to be dubious or non-genuine or contrary to objectives of the Act. On cumulative examination of the facts, it can be held that questions proposed are answered as above. Therefore, this Tax Appeal does not deserve any further consideration and the same is dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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