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TMI Blog2017 (6) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner is thereupon empowered to pass an order in writing either registering an Institution or if he is not satisfied about the objects of the Trust or Institution and of the genuineness of its 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. See Shri Anjaneya Medical Trust Vs. CIT [2016 (3) TMI 30 - KERALA HIGH COURT ] In order to ascertain the true nature and purpose of the Trust, the objectives are to be considered as a who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 towards the objects of the Trust. He therefore concluded that the objects of the Trust were religious objects and had not carried out any activities during the last three years and accordingly the application for registration u/s 12A was rejected. Aggrieved by the order ld. CIT dt.26.09.2014 assessee is now in appeal before us and has raised the following grounds : 1. On the facts and in the circumstances of the case, the learned Commissioner of Income Tax I, Pune has erred in not granting the Registration u/s 12AA(1)(b)(ii) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 any expenditure on the objects of the Trust and secondly by invoking the provisions of Sec.13(1)(b) of the Act. 5. The registration u/s 12A of the Act can be sought either by a Trust or by an Institution. In order to avail of the benefit of exemption u/s 11 or 12 of the Act, the activities of the Trust or the Institution must be charitable or for religious purposes. The conditions for applicability of Sec.11 and 12 are provided u/s 12-A and one of the conditions is that the person in receipt of the income which he cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 trust. This has been made a condition precedent for the claiming of benefits under the other provisions of the Act regarding exemption of income, contribution, etc. No examination of the modus of the application of the funds of the trust or an examination of the ethical background of its settlers is called for while considering an application for registration. 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. Where benefits are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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