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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 ..... A. 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 applicant-Trust submitted a copy of bank statement and also had given details of Trust Deed. A report of inspector was called for, who reported that there is no activity relating to the Trust going on at the premises of the Trust. He was directed to meet one of the staff members working in the organization as Lalbhai Group had many trusts operating and carrying charitable activities. A letter was given by the Inspector dated 29.03.2012 which indicated that the Trust inten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 make such inquiries as he may deem necessary and after satisfying himself about the objects of the trust or institution and the genuineness of its activities" presume the existence of activities before the Commissioner can pass an order granting registration?" 3. Learned counsel Ms. Mauna Bhatt for the revenue has fervently argued that there is nothing emerging on record that the Trust started its activities and therefore, the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; '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 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 - &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (1) and subsequently the Commissioner is satisfied that the activities of such 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 Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, he may still come to the conclusion that he is not satisfied about the objectives of the Trust or the genuineness of its activities. We understand the decision of the Tribunal 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 Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reinabove. It is also to be noted that additionally the Statute itself provides for cancellation of such registration in the event of satisfaction of the authority concerned with the amendment 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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