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TMI Blog2017 (1) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... simply applied for registration under the provisions of Section 12AA of the Act. The application of section 13(1)(b) would only arrive at a stage when an application for exemption is made. At the time of registration of the trust all that is required to be seen is whether the object and purpose of the formation of the trust, is for a charitable purpose. In view of the above, we are of the opinion that the tribunal rightly came to the conclusion that at the stage of grant of the registration under Sections 12A and 12AA, the provisions of Section 13(1)(b) would not apply. The questions are, therefore, answered in favour of the assessee and against the department. - Income Tax Appeal No. 427 of 2008 - - - Dated:- 16-1-2017 - Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n objects as well as the activities of the trust were construction and maintenance of temple and the same were hit by the provisions of section 13(1)(b) of the Income Tax Act, 1961. 1.2 In doing so whether tribunal erred in law in taking the view that at the time of grant of registration under section 12A/12AA, the issues covered u/s 13 of the Income Tax Act, 1961 are alien, without appreciating that while recording his satisfaction regarding the objects of the trust at the time of grant of registration u/s 12AA, the Commissioner of Income Tax is required under the law to take into consideration whether the objects of the trust are in conformity with the various provisions of the Income Tax Act, 1961 including the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 13(1)(a) or 13(1)(b) of the Income Tax Act 1961. The reply filed by the assessee was not found appropriate by the Commissioner of Income Tax-1, Kanpur and he vide order dated 21.11.2007 rejected the application filed by the assessee for grant of registration under Section 12A of the Act by assigning reasons in para-3 of the order dated 21.11.2007, which is as under:- 3. The written replies submitted in this regard by the assessee vide letters dated 19.11.2007 and 21.11.2007 have been carefully considered. The main thrust of the assessee's submissions is that the said institution is a Public Religious Trust and as such there is no violation of the provisions of Section 13(1)(a) or 13(1)(b) of the Income Tax Act, 1961. In this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption to the trust on account of it being engaged only in religious activities is concerned, it can be separately examined by the AO while considering the question of giving exemption under Section 11/13. But so far as the question of granting of registration under Sections 12A/12AA is concerned, the issues covered under Section 13 are alien and, therefore, on those basis registration cannot be refused. We, therefore, direct the learned CIT to grant registration to the assessee under section 12AA of the Act. It is this decision which is under challenge before this Court. We have heard learned counsel for both the sides at length and have no difficulty in answering the questions in favour of the assessee. The assessee had filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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