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TMI Blog2014 (1) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... activities. The assessee has filed copy of the aims and objects of the society, which shows that the assessee exists for educational and charitable purpose only, which is also supported by the report of DCIT - The assessee is at the stage of setting up the educational institution, the assessee society was set up to achieve its objects of establishing educational institution is in the process of establishing such institution and received donations - At this stage, the genuineness of the objects have to be tested and not the activities which have not commenced - The reasons given by the ld. CIT in the impugned order for rejection of applications are not relevant at this stage which may be a separate issue and arise whenever the return of income would be filed by the assessee and would be examined at assessment stage - Decided in favour of assessee. - ITA No. 78 & 79/Agra/2013 - - - Dated:- 26-7-2013 - Shri Bhavnesh Saini And Shri A. L. Gehlot,JJ. For the Appellant : Shri R. C. Tomar, ITP For the Respondent : Shri S. L. Maurya, Sr. DR ORDER Per Bhavnesh Saini, J.M.: Both the appeals by the assessee are directed against the common order of ld. CIT, Aligarh date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the ld. CIT(A) and referred to various documents in the paper book and submitted that the assessee s objects are educational only. He purchased the land for the purpose of construction of educational institution. The donations are received for the purpose of corpus. The donors have confirmed giving of donations to the assessee in their statement recorded u/s. 131 of the IT Act, which is supported by their PAN or identity proof. He has submitted that the assessee is at the stage of construction of educational building and has also applied to Dr. Bhim Rao Ambedkar University, Agra for affiliation and with the office of Higher Education, Agra, Aligarh. Letters of the same are filed in the paper book. The photographs showing construction activities are going on are also filed in the paper book along with list of donors. He has also submitted that DCIT(Judicial) has recommended for grant of registration and approval under the above provision and his report is filed at page 90 of the paper book. He has relied upon the decision of Hon ble Allahabad High Court in the case of Hardayal Charitable and Educational Trust vs. CIT in Income Tax Appeal No. 107 of 2012 dated 15.03.2013. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d unless such trust or institution has been given a reasonable opportunity of being heard. 5. The ingredients of above section clearly makes out that before grant of registration u/s. 12AA, the ld. CIT has to satisfy himself about the objects and genuineness of the activities of the assessee trust or institution. Other conditions are not relevant at the stage of grant of registration. The recognition u/s. 80G(5) is consequential to the grant of registration. Hon ble jurisdictional Allahabad High Court in the case of Hardayal Charitable and Educational Trust vs. CIT-II, Agra (supra) held as under : The preponderance of the judicial opinion of all the High Court including this Court is that at the time of registration under section 12AA of the Income Tax Act, which is necessary for claiming exemption under Section 11 12 of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under section 12AA cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble Allahabad High Court in this case held that for grant of registration u/s. 12AA, The Commissioner of Income Tax is not required to look into the activities where such activities have not or in the process of its initiation. The objects of the Institution shall have to be seen. The issue of receipt of donations is not relevant. The registration could not have been refused on the ground that the trust has not yet commenced the charitable or religious activities. The assessee has filed copy of the aims and objects of the society, which shows that the assessee exists for educational and charitable purpose only, which is also supported by the report of DCIT (Judicial) dated 11.01.2013 (PB-90), in which it was reported that nature of the objects in by-laws/MOS was found to be educational. Income of the assessee was found to have applied wholly for charitable activities. The assessee society was found to exist and registered under the Societies Act. List of the donors have been provided. DCIT(Judl.), therefore, recommended grant of registration u/s. 12AA and approval of exemption u/s. 80G of the IT Act. The assessee purchased land for the purpose of construction of the building, de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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