2017 (6) TMI 580

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..... d by Dy. Charity Commissioner, Pune, Region, Pune. The object of the Trust interalia is to provide material for cremation ceremony at moderate cost or to provide it free of cost to the poor and desolate members of Hindu community of Poona City. Assessee made application in Form 10-A requesting for grant of registration u/s 12A of the Act. Ld. CIT was of the view that since the Trust was for a particular community, the provisions of Sec.13(1)(b) applies to the assessee Trust and therefore the Trust cannot be treated as 'Charitable Trust'. Ld. CIT has further noted that assessee in F.Ys. 2010-11, 2011-12 and 2012-13 had not carried out any activity as per the stated objects and during financial year 2013-14 it had spent a meagre amount toward .....

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..... estricted for a particular religion or community but is for all the members of the Poona City. Ld.A.R further submitted that at the time of examining the application for registration of Trust, the ld. CIT is not empowered to examine the application of income and further the provisions of Sec.13(1)(b) could not be invoked while considering the application for registration u/s 12A. He therefore submitted that the order of ld. CIT be set aside. Ld. D.R. on the other hand supported the order of ld. CIT. 4. We have heard the rival submissions and perused the material on record. The issue in the present case is with respect to denial of request for registration of the Trust u/s 12A of the Act mainly for the reason that assessee had not incurred .....

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..... activities, to pass an order in writing refusing to register the Trust or Institution. Thus it can be seen that at the time of grant of registration, the Commissioner is not empowered to examine the application of income. The stage for consideration of the relevance of the object of the Trust and the application of its funds arises at the time of assessment. We further find that Hon'ble Kerala High Court in the case of Shri Anjaneya Medical Trust Vs. CIT (2016) 382 ITR 399 (Ker) on the issue of the scope of inquiry by CIT(A) for the registration u/s 12A and 12AA has observed as under : "It is clear from a plain reading of sections 12A and 12AA of the Act that what is intended thereby is only a registration simpliciter of the entity of a .....

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