2014 (1) TMI 761

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..... und to be contrary to law - Following Hardayal Charitable and Educational Trust vs. Commissioner of Income-Tax1 [2013 (3) TMI 377 - ALLAHABAD HIGH COURT] - The registration under section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity - At this stage, only the genuineness of the objects has to be tested and not the activities, which h .....

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..... n for registration was that though the society was established in August 2011 with a dominant object of imparting higher medical education by establishing Medical Colleges, Hospitals and Research Centres, such charitable activities had not still been commenced. The provisions of Section 12AA have been construed in the judgements of several High Courts which have been relied upon in a judgement of .....

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..... registration under section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this stage, only the genuineness of the objects has to be tested and not the activities, which have not commenced. The enquiry of the Commissioner of Income-tax at such preliminar .....

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..... g to grant registration has been found to be contrary to law. The Tribunal has in the circumstance while allowing the appeal directed the Commissioner to grant registration under Section 12AA. The view of the Tribunal is based on the judgement of a Division Bench of this Court which follows the consistent body of law. 4.The learned counsel appearing on behalf of the revenue has also relied upon .....

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..... en spent during the previous five years on any charitable purpose. Moreover, huge amounts of fixed deposits were found in the name of a trustee who had later approached the Settlement Commission admitting his guilt. Hence, it is clear that both these judgements are on the peculiar facts as stated hereinabove and are distinguishable. 6.The appeal would, therefore, not give rise to any substantia .....

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