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TMI Blog2015 (9) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013. The trust filed application before the Commissioner of Income-tax for registration as charitable trust u/s 12AA of the Act. According to the ld.representative, the object of the trust is to serve the people irrespective of caste, creed and community. The trust also intended to organize, facilitate, conduct and assist in organizing, facilitating and conducting lectures, seminars, symposium, conventions, conferences, consultations, workshops, literacy programmes and retreats for training so as to empower the women. The other object of the trust is to provide training, institute studentships, scholarships, stipends, medals, prizes etc. and to help and encourage deserving students and to provide monetary aid to students for pursuing highe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of charity immediately after the establishment of the trust. Therefore, the object of the trust has to be taken into consideration by the authority and the object of the trust could be read from the trust deed itself. The ld.representative has also placed his reliance on the judgment of the Delhi High Court in DIT vs Foundation of Opthalmic and Optometry Research Education Centre reported in 355 ITR 361 (Del) and the decision of the Hyderabad Bench of this Tribunal reported in (2014) 35 ITR (Trib) 267 and the judgment of the Madras High Court in DIT vs Seervi Samaj Tambaram Trust 362 ITR 199 (Mad) and submitted that for grant of registration of the trust commencement of activity of the trust is not necessary. Therefore, according to the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... procedure for registration of the trust. The Commissioner on receipt of the application for registration u/s 12AA shall call for documents and information from the trust in order to satisfy himself about the genuineness of the activities of the trust or institution and may also make such enquiry as he deem necessary before granting registration. After completing the enquiry he has to pass an order in writing registering the trust or institution or refusing to register the trust or institution. Therefore, the question arises for consideration is whether the assessee trust has to commence its activity at the time of registration u/s 12AA of the Act or not? The ld.representative placed his reliance on various judgment of the High Courts and T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner exercises his jurisdiction under section 12AA while considering an application for registration under section 12A he has to be satisfied of the charitable and religious nature of the objects and genuineness of the activities of the trust or institution. In the present case, admittedly, the society has not done any charitable work during the relevant period, on the other hand, the activities which they have carried on during the period were only for the purpose of generating income for its members. There were no materials before the Commissioner to be satisfied of the genuineness of the activities of the trust or institution. Under these circumstances, rejection of the application under exhibit P5 cannot be termed as illegal or arbitr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was carried on. However, as observed earlier, in the absence of the activity report, this Tribunal is unable to appreciate the activities carried on by the assessee. In view of the above, this Tribunal is of the considered opinion that the matter needs to be re-examined by the Commissioner in the light of the judgment of the Kerala High Court in the case of Self Employees Service Society (supra). Accordingly, the order of the lower authority is set aside and the issue of registration is remitted back to the file of the Commissioner. The Commissioner shall re-examine the matter in the light of the object of the assessee trust and its activity and thereafter decide the same in accordance with law after giving reasonable opportunity of hear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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