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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 ..... rejection of its application for registration u/s 12AA of the Act. Briefly, the facts are, the assessee a company incorporated u/s 25 of the Companies Act, 1956 came into existence vide certificate of incorporation dated 13.12.2012 issued by the Registrar of Companies, Andhra Pradesh. The company as per the memorandum and article of association is set up with the following main objects: 1. To Establish, promote, encourage, support, assist, aid and advance educational institutions by promoting schools, colleges, university(s) for pre-primary, primary, secondary, undergraduate, post-graduate, doctoral, post-doctoral, vocational or otherwise in various branches or fields of education without or minimal fees. 2. To disseminate the knowledge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed manner before the CIT(A) seeking registration u/s 12AA of the Act. The CIT called upon the assessee to produce bills for purchase of fixed assets and copies of receipt for donation. In response to the query made by the CIT, the assessee filed a letter dated 13.05.2013 enclosing therewith declaration u/s 13(1)(c) of the Act, form no.10B dated 09.05.2013, income and expenditure statement for the period 01.04.2012 to 31.12.2013, balance sheet for the period 01.04.2012 to 31.03.2013. The assessee also furnished the donation receipts bearing nos.1 to 13 issued during the period February and March, 2013, labour account copy of donation for the period 01.04.2012 to 31.12.2013, details of donors and also bills and vouchers for purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered apart from the objects of a trust / society / institution. If there are no activities, the genuineness of the activities cannot be ascertained^ and the provisions are not implementable. 7. For granting registration u/s.12AA, the objects of the trust as well as genuineness of the activities have to be considered. In view of the foregoing discussion and since the company is yet to conduct its activities according to the memorandum of association, the application filed by the company is not maintainable and application in Form No.10A dated 22-03-2013 filed on 22-03-2013 for grant of registration U/S.12AA of the I.T. Act is liable to be rejected, and is hereby rejected. ______ 4. The Ld. A.R. taking us through the objects of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out other charitable activities. It was submitted that the assessee has planned a lay out to spend about Rs. 90 lakhs for developing the infrastructure for carrying out the objects. The Ld. A.R. therefore submitted that in view of such facts, the CIT was totally unjustified in rejecting the assessee's application for registration on the ground that the assessee has not carried out any substantial activity as per its object. In support of such contention, the Ld. A.R. relied on the following decisions: (1990) 185 ITR 634 (All) (2011) 50 DTR 243 (Kar) (2000) 246 ITR 532 (Mad.) (2013) 355 ITR 361 (Del) High Court of Gujarat in CIT Vs. Sathvara Education Foundation 5. The Ld. D.R. on the other hand supporting the order of the CIT submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT to reject the application solely on the ground that the assessee has not commenced charitable activities as per its objects. When he has not expressed any doubt with regard to the charitable object of the assessee and when there is no other material before him to conclude that assessee's activities are not genuine, there is no reason to refuse registration u/s 12AA of the Act. The grant of registration u/s 12AA of the Act does not automatically entitle the assessee for exemption u/s 11 of the Act. The Assessing officer is 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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