9911796707
TMI Blog2015 (2) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... anting of registration is that the object of the trust for which it was formed have to be seen and examined, the Commissioner of Income-tax's satisfaction about the genuineness of the activities of the trust is not a criteria as the trust is yet to commence activities. Asking about charitable activities at the nascent stage would amount to putting a cart before the horse. Tribunal rightly directed the Commissioner for granting registration under section 12AA of the Act. - Decided in favour of assessee. - D.B. INCOME TAX APPEAL NO. 17/2014 - - - Dated:- 18-8-2014 - MR. AJAY RASTOGI AND MR. J.K. RANKA, JJ. For the Appellant : Mr. N.S. Jangpangti, A.C.I.T JUDGEMENT J. K. Ranka J.- The instant appeal filed by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aced on record rejected the application for grant of registration under section 12AA The order was challenged before the Tribunal by the assessee and the Tribunal, vide impugned order, allowed the appeal of the assessee by holding that the predominant objects of the trust are required to be seen at the time of grant of registration under section 12AA and once these objects have been found to be charitable in nature ancillary/subsidiary objects, which were relating to the purchase, acquire the land and building is secondary and need not be looked into at the time of granting of registration. It was also found by the Tribunal that the objects of the assessee were to run medical and educational institutions, provide education, medicine, food, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his hon'ble court. 4. We have heard the learned officer and have gone through the impugned order as well as the order of the Commissioner and, in our view, no question of law much less substantial question of law arise out of the order of the Tribunal. 5. On a reading of section 12AA and other provisions, in our view, there is no restriction as the Revenue has contended. In our view, the statute does not prohibit or enjoin the Commissioner from registering the trust solely based on its activities, without commencement of any activity in the case of a newly registered trust. 6. However, in our view, at the stage of creation of a trust/society or institution, as the case may be, though the Commissioner has naturally to satisfy hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities, it should fulfil the purpose of grant of registration under section 12AA. It may be practically impossible for one to prove the genuineness of the trust/ society at the time of creation of the society/trust itself and genuineness in our view can be proved only by the activities later on point of time after grant of registration. 7. Purpose of section 12AA in a welfare country like ours is to grant benefits on public charitable trusts/societies to help the people, needy and down trodden for grant of medical, educational and other facilities. Such institutions are playing the role, which the Government cannot do itself. Proper checks and balances are available with the Revenue to revoke the registration as pointed out hereinbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iately at the time of formation then there is no prohibition under the Act seeking registration. In our view, as observed earlier, the only thing to be looked into at the time of granting of registration is that the object of the trust for which it was formed have to be seen and examined, the Commissioner of Income-tax's satisfaction about the genuineness of the activities of the trust is not a criteria as the trust is yet to commence activities. Asking about charitable activities at the nascent stage would amount to putting a cart before the horse. 10. In view of what we have observed hereinabove, in our view the Tribunal rightly directed the Commissioner for granting registration under section 12AA of the Act and, in our view, read ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
