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TMI Blog2016 (7) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... a building for the purpose of establishment of library for which the trust has applied for approval before the competent authority that it has incurred certain expenditure. The Ld. Commissioner himself has accepted that the objects of the assessee are charitable in nature. However, he has rejected the registration u/s 12AA of the Act for the reason that the society has not commenced its operations. In our opinion, having accepted the assessee trust as charitable in nature, rejecting on the ground of non- commencement of operations and not granting registration u/s 12AA of the Act by the Ld. Commissioner is prematured. Also see Sanjeevamma Hanumanthe Gowda Charitable Trust Vs. Director of Income-Tax (Exemptions) [2006 (3) TMI 91 - KARNATAKA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ituals in death cases. ix) To strive for construction of a community hall for facilitating the public. x) To conduct medical camps, to conduct camps for introducing the brides and bridegrooms. xi) To construct water tanks, to strive for bringing the ecological balance, and to protect the environment. xii) To impart cultural skills to the members in leisure times. xiii) To work for developing the sports and to conduct games. xiv) To eradicate poverty and illiteracy, to extend medical help irrespective of the caste, creed, religion and gender. To work unitedly for the development of Indians. xv) In future, it is proposed to undertake any developmental activity and to remove the activity which is found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to achieve the objects for which it is existed. It is not the case of the Commissioner that the assessee is existed for non-charitable purpose. The only objection raised by the Commissioner is that the assessee has not carried out any activities as per its objects. In our opinion, the objection raised by the Ld. Commissioner is not correct for the reason that the assessee society is existed very recently and therefore it will take some time to start its operations to achieve the objects as per the Trust deed. It is not possible for the assessee to achieve all the objects. In this case, the assessee wanted to construct a building for the purpose of establishment of library for which the trust has applied for approval before the competent au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving regard to the scheme of ss. 11, 12 and 13 ultimately what the CIT has to look into is not the source of income to the trust but whether such income is applied for charitable or religious purposes. The satisfaction of the CIT should be regarding the application of the income of the trust for the aforesaid purposes which only entitles the assessee to claim exemption. For arriving at such satisfaction primarily he has to look at the object of the trust, when the same is reduced into writing in the form of trust deed. If on the date of the application the trust has received income from its property, then find out how the said income has been expended, and whether it can be said that the income is utilized towards charitable and religious ..... X X X X Extracts X X X X X X X X Extracts X X X X
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