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TMI Blog2015 (12) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... empowered under the Act to look into both the genuineness of the activities and application of fund and in case of any violation of the provisions contained under section 11 to 13 of the Act, the assessee would not be entitled for exemption u/s 11 and would be subjected to tax. That being the case, in our view, refusal of grant of registration u/s 12AA of the Act is not justified solely on the ground that the assessee has not commenced its activities. We are supported in our view by the decisions relied upon by the assessee. In that view of the matter, we set aside the order of the CIT and direct him to grant registration u/s 12AA of the Act to the assessee. - Decided in favour of assessee. - ITA No.649 & 650/Vizag/2013 - - - Dated:- 7-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rterly - in English, Telugu and other Indian languages, the topics being education about religions, history of India and of the world, culture - Indian Asian - including translated literature from English, Telugu and Hindi and vice-versa and use the proceeds, if any obtained for pursuing main objects of the company. 3 To establish, run, maintain or assist any medical institutions, nursing home, or clinics or to grant assistance to needy and indigent persons for meeting the cost of medical treatment and support individuals/organizations for conducting medical camps for the poor and to acquire, run, or assist individuals and organisations in providing para medical facilities like ambulances, provide gen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. The CIT on examining the income and expenditure statement for the period 01.04.2012 to 31.03.2013 noticed that the assessee company had received donations of ₹ 8,96,226/- and shown excess of income over expenditure of ₹ 8,80,256/- thereby incurring expenditure of ₹ 15,970/- only. From the status report of activities of the company, the CIT noted that the assessee had paid tuition fee of ₹ 6,000/- to two students and has given some donation to Spandana Organisation and some other invoices towards purchase of cloth, etc. There is no other substantial activity. He further noted that the assessee has published two books which is not as per the object no.2 of the assessee. He further noted that the books published wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the objects of the company submitted that the CIT has not raised any doubt with regard to the charitable object of the company. It was submitted that the only ground on which the CIT has refused to grant registration is that the assessee has not carried on any substantial charitable activity. In this context, the Ld. A.R. submitted that from the date of its inception, the assessee had undertaken charitable activities in furtherance of its main objects by paying an amount of ₹ 12,000/- towards fee of two students studying in Mahati English Medium School. The company has published two books titled as `Bharatiyata 3rd 4th having ISBN No. and has incurred expenditure of ₹ 1,20,000/- towards printing and publishing the books. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the other hand supporting the order of the CIT submitted that as the assessee has not carried out any substantial activities and whatever activities were carried out like publishing of books, etc. is not in consonance with the objects of the society, registration u/s 12AA of the Act was rightly refused. 6. We have heard the submissions of the parties and perused the records and materials. We have carefully examined the decisions placed before us. On a perusal of the order of the CIT, it becomes clear that he has refused to grant registration u/s 12AA of the Act mainly on the ground that the assessee has not conducted its activities as per the objects mentioned in the memorandum of association. In this context, it has to be noted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 11 to 13 of the Act, the assessee would not be entitled for exemption u/s 11 and would be subjected to tax. That being the case, in our view, refusal of grant of registration u/s 12AA of the Act is not justified solely on the ground that the assessee has not commenced its activities. We are supported in our view by the decisions relied upon by the assessee. In that view of the matter, we set aside the order of the CIT and direct him to grant registration u/s 12AA of the Act to the assessee. 7. In the result, the assessee s appeal is allowed. ITA No.650/Vizag/2013: 8. This appeal is against the order dated 10.09.2013 of the CIT rejecting assessee s application for grant of approval u/s 80G of the Act. On a perusal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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