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TMI Blog2014 (7) TMI 1033X X X X Extracts X X X X X X X X Extracts X X X X ..... CPC, as claimed by the assessee, then he should give his finding about the objects of the trust and the genuineness of the activities and decide the issue regarding registration of the assessee trust u/s 12AA of the Act - before going into this aspect, objects of the trust and its activities, it is very much essential to see that the assessee is a valid trust because the registration is available only to a trust and specified institutions and not to any other person –the matter is remitted back to the CIT – Decided in favour of Assessee. - ITA No.49/LKW/2011 - - - Dated:- 4-7-2014 - Sunil Kumar Yadav and A K Garodia, JJ. For the Appellant : Shri Rakesh Garg, Adv. For the Respondent : Shri Manoj Kumar Gupta, CIT, DR ORDER : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the educational purposes and as such its activities falls within the definition of charitable purposes as defined under sub section (15) of section 2 of the Income Tax Act and the view taken by him that all its activities and clauses of trust deed indicate that it was created only with intention to do commercial activities with a running of school of high standard , for rejecting the registration under section 12AA is erroneous both in law and on facts. 4. BECAUSE at the time of granting registration the CIT is required to look into the objects whether they are in the nature of charitable activities as defined in section 2(15) of the Income Tax Act or not and the genuineness of the activities in consonance with such objects a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, which are not in accordance with the Indian Trust Act, 1882 as per CIT. Thereafter, considering the reply of the assessee dated 27/12/2010, he has passed the order that as per Indian Trust Act, 1882, trust activities should confine to Indian territories and there is no concept of primary or permanent members in the Indian Trust Act, 1882 and the trustee have no such power to appoint their successor in their office either in his life time or through will. He has also observed that the trustees of the trust have no power to change the nature of the donation received from donor with a specific direction. On this basis, the CIT came to conclusion that the trust is not valid trust. 6. Now in the light of these facts, we consider the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o CIT. All the arguments should be made before the CIT and he should give a finding about all the arguments after providing reasonable opportunity of being heard to the assessee. Moreover, if the CIT finds that the assessee is a valid trust as per the provision of Indian Trust Act, 1882 or as per section 92 of CPC, as claimed by the assessee, then he should give his finding about the objects of the trust and the genuineness of the activities and decide the issue regarding registration of the assessee trust u/s 12AA of the Act. As we feel that before going into this aspect i.e. objects of the trust and its activities, it is very much essential to see that the assessee is a valid trust because the registration is available only to a trust and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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