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TMI Blog2016 (2) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... hile considering the approval for section 80G. These are the matters to be consider by the Assessing Officer at the time of granting exemption under section 11 of the Act. In view of the above, we directed the CIT(E) to grant assessee the approval under section 80G of the Act. - ITA No. 687/Chd/2015 And ITA No. 688/Chd/2015 - - - Dated:- 9-2-2016 - SHRI H.L.KARWA, VICE PRESIDENT AND MS. RANO JAIN, ACCOUNTANT MEMBER For The Appellant : S/Sh.B.M. Monga For The Respondent : Shri Manjit Singh, DR ORDER PER RANO JAIN, A.M. Both the appeals filed by the assessee are directed against the separate orders of learned Commissioner of Income (Exemptions), Chandigarh, each dated 20.5.2015, passed under sections 12AA and 80G of the Income Tax Act, 1961 (in short the Act ) respectively. 2. Briefly the facts of the case are that the assessee filed an application in Form No. 10A before the CIT(Exemption), Chandigarh dated 2.12.2014, for registration under section 12AA of the Act. The CIT(Exemption) denied assessee the registration under section 12AA of the Act on the ground that on perusal of income expenditure account for the year ended 31.3.2014, the gross re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption) cannot deny assessee the registration under section 12AA of the Act. Reliance was placed on the judgement of jurisdictional Punjab Haryana High Court in the case of CIT Vs Surya Educational Charitable Trust 203 Taxmann 53 (P H) and CIT Vs. B.K.K. Memorial Trust (2013) 256 CTR 424 (P H). 5. The learned DR relied on the order of the CIT(Exemption) and relied on the judgment of the Hon'ble Punjab Haryana High Court in the case of CIT Vs. Shri Guru Gorakhnath Charitable Educational Society (2015), 233 Taxman 189 (P H). 6. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. The undisputed fact is that the registration under section 12AA of the Act was refused to the assessee by the CIT(Exemption)by writing a few lines in para 4 of his order which read as under: 4. A perusal of the income and expenditure account for the year ending 31.3.2014 of the applicant society shows that the gross receipts of the applicant were ₹ 27,163/- out of which the applicant has incurred an expenditure of ₹ 22189/- (Rs.4800/- towards accounting charges, ₹ 34 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its envisaged activities in the first year itself. Under Section 12AA of the Act satisfaction regarding the genuineness of the activities of the Trust is to be seen and the stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Thus the contention that Trust was not set up for charitable purpose and it was utilizing its income not for the said purpose cannot be examined at this stage as only objects of the Trust had to be considered by the Commissioner. The Trust was in nascent stage and was yet to work towards its objects. 9. As far as the merits of the issues raised by the CIT(Exemption), we have commented upon hereinabove, however, there is a more basic and germane issue to be decided in this case i.e. the powers of the CIT(Exemption) while granting or refusing registration under section 12AA of the Act. The two things which the CIT(Exemption) has to look after receiving an application for registration under section 12AA of the Act are whether the objects of the Trust are charitable in nature and whether the activities carried on by the assessee are genuine. This has been provided in the section 12AA of the Act itself. As pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee or subsidized medicines to the needy Mentally Retarded Mentally ill individuals, as far as possible. IV. To carryout awareness programmes to identify Mentally Retarded Mentally ill individuals initiate their treatment/rehabilitation process. V. To guide assist the families of Mentally Retarded Individuals in obtaining Legal Guardian Certificates through the concerned local level Committees. VI. VI. To guide assist the families caretakers of Mentally Retarded Mentally ill Individuals in obtaining the Disability Certificate of Mentally Retardation/Mental illness from the competent Medical Authorities. VII. To work for inclusion of Mental illness in National Trust Act 1999. VIII. To safeguard the Human Rights of Mentally Retarded Mentally ill individuals. IX. To work for establishing homes for Mentally Retarded Mentally ill Individuals, initially in Panchkula (Haryana) then in other places, progressively. X. To work for communal harmony National integration. XI. To organize sports cultural activities for the Mentally Retarded Mentally ill individuals. 12. We see that all the aims and objects of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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