2015 (1) TMI 477

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..... d for registration u/s.12A of the Act on 13.03.2013. In response thereof, Notice was issued to the assessee for necessary verifications. The assessee submitted its books of accounts and other documents vide letter dated 23.09.2013. After verifying the documents, it was allegedly found that the assessee was not fulfilling the conditions laid down for registration u/s. 12A of the Act and accordingly, order came to be passed rejecting the application of the assessee for registration u/s.12A of the Act. 3. The assessee preferred appeal before the Appellate Tribunal against the aforesaid order. The Appellate Tribunal allowed the appeal vide impugned judgment and order dated 11.04.2014. Being dissatisfied with the same, the Revenue has preferred .....

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..... earlier. Full text of the said Instruction No.1132 reads as under:                 "A question has been raised regarding the availability of exemption in the hands of charitable trusts of amounts paid as donation to other charitable trusts. The issue has been considered by the Board and it has been decided that as the law stands at present, the payment of a sum by one charitable trust to another for utilization by the doneetrust towards its charitable objects is proper application of income for charitable purpose in the hands of the doneetrust and the donor trust will not lose exemption under section 11 of the Income tax Act, 1961 merely because the donee trust did .....

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..... ision of this Court rendered in Tax Appeal No.918/2011 decided on 10.12.2012. The observations made in Para5 of the said decision are relevant for our purpose and it reads as under;                "5. It can thus be seen that under Section 12AA of the Act, the Commissioner has to satisfy himself about the objectives of the trust and the genuineness of its activities. For such purpose, he has the power to call for such documents or information from the trust as he think are necessary. However, this does not mean that if the activities of the trust have not commenced, the Commissioner has authority to reject its application for registration on the ground that the Trust fai .....

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