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TMI Blog2014 (2) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ities - It is not denied by the assessee that on the date of the application under Section 12AA, it was yet to commence its operation - The genuineness of the objects of the trust were not questioned by the Commissioner – Relying upon the decision of the Gujarat High Court in the case of CIT V. Kutchi Dasa Oswal Moto Pariwar Ambama Trust [2012 (12) TMI 876 - GUJARAT HIGH COURT] - Decided against Revenue. - Tax Case (Appeal) No.579 of 2013 - - - Dated:- 27-1-2014 - Chitra Venkataraman And T. S. Sivagnanam,JJ. For the Appellant : Mr. J. Naryanasamy Standing Counsel for Income Tax For the Respondent : Mr. J. James JUDGMENT (Judgment of the Court was delivered by T. S. Sivagnanam,J.) This Tax Case (Appeal), filed by the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Tribunal and relied on the decision of this Court in the case of CIT V. Arulmighu Sri Kamatchi Amman Trust reported in (2012) 206 Taxman 69 and submitted that there was no bar in granting registration though the Trust having objects of both charitable as well as religious. Reliance was also placed on the decision of the Gujarat High Court in the case of CIT V. Kutchi Dasa Oswal Moto Pariwar Ambama Trust reported in 29 Taxman 228 and submitted that merely because the activities have not been commenced is not a ground for rejection of the application under Section 12AA of the Income Tax Act. 4. The Tribunal, after taking into consideration the decision of this Court in the case of CIT V. Arulmighu Sri Kamatchi Amman Trust reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to appreciate the activities claimed to be carried on by the said assessee, which was an admixture of both religious and charitable in nature. Therefore, the Tribunal ought not to have interfered with the order of the Commissioner of Income Tax. The Division Bench of this Court, after taking into consideration the provision under Section 11(1)(a) of the Income Tax Act, which states that subject to the provisions of sections 60 to 63, the income derived from property held under trust wholly for charitable or religious purposes, to the extent of which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subjects related to audit and not on any other subject and after analysing the objects of the said trust, pointed out that the activities of the said trust in publishing and selling books of professional interest, which were meant to be used as a reference material even by the general public as well as the professionals in respect of Bank Audit, Tax Audit etc., could not be construed to be one of commerce in nature. Further, it was pointed out that under Section 12AA of the Income Tax Act, while considering the application, the Officer has to satisfy about the genuineness of the activity of the trust or the institution and for that reason, he may also make such enquiries as he deem it necessary in that behalf. 8. In the above-said case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ects of the trust were not questioned by the Commissioner. Considering the fact that the continuance of registration is further a subject matter of scrutiny by the Commissioner as contemplated under Section 12AA(3) of the Income Tax Act, we do not think that the Revenue would be justified in refusing the registration at the threshold. The Tribunal had followed the decision of the Gujarat High Court in the case of CIT V. Kutchi Dasa Oswal Moto Pariwar Ambama Trust reported in 29 Taxman 228. We respectfully agree with the decision of the Gujarat High Court. 10. In the light of the above, we do not find any question of law arises for consideration in this Tax Case (Appeal). Accordingly, this Tax Case (Appeal) stands dismissed. No costs. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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