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TMI Blog2017 (7) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... order of rejecting the application for the grant of the registration U/s 12AA of The Income Tax Act, 1961 of the trust by ignoring the law laid down by the jurisdictional High Court of Allahabad in the most recent case of Hardayal Charitable and Educational Trust V Commissioner of Income Tax-II, Agra reported as (2013) 32 TAXMANN.COM 341(Allahabad) the facts of which were entirely similar to that of the petitioner's case. 2. That on the facts and in the circumstances of the petitioner's case, the order passed by the learned Commissioner of Income Tax, Muzaffar Nagar (U.P.) deserves to be set-aside. 2. The brief facts of the case are as under: It is observed from the order of Ld. CIT that assessee is a trust and had filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourage cultural activities in India. 7. To promote research by establishing research institution. 8. To provide aid to poor and needy persons by way of financial help and by arranging desired such facilities. 9. To promote Indian culture. 10. To publish and distribute literature magazine etc., for enhancement of general knowledge of the public at large. 11. To run social projects beneficial to the society at large. 12. To develop institutions for the disabled persons to provide education food and clothing to them. 13. To run and maintain hospitals, schools and other institutions for benefit of public at large. 14. To get all such help donations funds and grants from central/Provincial Government and other such person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ardayal Charitable and Educational Trust (supra) as under: "at the time of registration under section 12AA of the income tax Act, which is necessary for claiming exemption under section 11 and 12AA of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in process of its initiation. Where a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stage of granting registration under section 12AA of the Act, he has to satisfy himself about the objects of the institution and genuineness of the activities. He is not required to look into the utilisation of funds, commercial nature of activity etc., at that stage. These aspects are to be looked into by Assessing Officer at the time of assessment. This Tribunal in the case of Baba Educational Welfare Society (supra) has held as under: "As per the scheme of the Act, registration under section 12 A of the Act does not ipso facto entitle an assessee to avail exemption under section 11 of the Act. For availing exemption under section 11, the assessee has to fulfill the conditions laid down under section 11 to 13 of the Act. Therefore whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re for registration, does not speak anywhere that the Commissioner while considering the application for registration shall also see that the income derived by the trust or the institution is either not being spent for charitable purpose or such institution is earning profit. The language used in the section only requires that activities of the trust or the institution must be genuine, which accordingly would mean, they are in consonance with the objects of the trust/institution, and are not mere camouflage but are real, pure and sincere, nor against the proposed objects. The profit earning or misuse of the income derived by charitable institution from its charitable activities, may be a ground for refusing exemption only with respect to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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