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TMI Blog2014 (11) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... h institutions, and receives donations, the registration u/s 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 preliminary stage should be restricted to genuineness of the objects and not the activities unless such activities have commenced - The Trust or society cannot claim exemption, unless it is registered u/s 12AA of the Act and thus at that such initial stage the test of the genuineness of the activity cannot be a ground on wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x, Varanasi, rejected the application for registration under Section 12AA of the Act and consequently for the grant of approval under Section 80G(5)(vi) of the Act on the ground that the assessee had not filed material in relation to the activities of the trust since its inception. In the view of the Commissioner, merely expressing an intention to conduct a charitable activity, was not sufficient to grant registration until the commencement of charitable activities is noticed. Hence, the Commissioner held that the object and genuineness of the trust remain unverifiable. The Tribunal, in appeal, has reversed the view of the Commissioner while relying upon its own decision in the case of Panchganga Foundations Vs. Commissioner of Income Tax2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust or society cannot claim exemption, unless it is registered under Section 12AA of the Act and thus at that such initial stage the test of the genuineness of the activity cannot be a ground on which the registration may be refused. This aspect of the view of the Tribunal is hence consistent with a judgment of the Division Bench of this Court and would not require this Court to take any different view. However, the submission which has been urged on behalf of the Revenue is that the Tribunal was not quite justified in holding that the Commissioner had not disputed the fact that the objects of the assessee were of a charitable nature. According to the Revenue, there is no specific finding by the Commissioner on that aspect. The ob ..... X X X X Extracts X X X X X X X X Extracts X X X X
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