9911796707
TMI Blog2015 (3) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration u/s 12AA of the Act which is totally unjustified and not according to law. 2. That the worthy CIT, Bathinda, has also erred in giving its finding that the application of Society for grant of registration u/s 12AA of the Act is premature in absence of any adverse finding regarding the aims, objects and genuineness of activities of the Society. 3. That the appeal is within the time and copy of order of CIT, Bathinda in original along with receipt of Rs. 500/- deposited as appeal fee are also enclosed." 2. The brief facts of the case as arising from the order of the ld. CIT, Bathinda, are reproduced for the sake of convenience: "An application for registration u/s 12AA of the Income Tax Act, 1961 was filed by EK Umeed Welfare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s very much clear that there were negligible activities till the date of application and, therefore, no reasonable satisfaction can be recorded about the genuineness of the activities of the trust which is a pre-requisite u/s 12AA(1)9a) of the Income Tax Act,1961 for grant of registration u/s 12AA. 6. In view of the facts on record, the applicant institution does not qualify to be treated as charitable institution. Moreover, in view of nominal figure of receipts, the application of the society for grant of registration u/s 12AA of the Income Tax Act, 1961 is premature. Hence, its request for grant of registration u/s 12AA is not allowed and the application of EK Umeed Welfare Society, Shakti Nagar, College Road, Fazika filed on 22.03.2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han Lal Khunger and Smt. Rakesh Rani W/o Sh. Roshan Lal Khunger alongwith their affidavits and the sources were also filed before the ld. CIT (PB 41-42). The assessee is a registered Society with the Registrar of Society dated 09.11.2013 and the application before the ld. CIT was filed in Form No.10A and no defect in any of the document filed before him has been pointed out in the order dated 13.02.2013. The defect pointed out by the ld. CIT in para 5 is that the donations have been shown at a negligible figure of Rs. 39,235/- and the activities till the date of application were negligible and therefore, reasonable satisfaction can not be recorded about the genuineness of the activities of the Society. In this regard, the ld. CIT himself ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndisputed facts in the present case are that the assessee has filed the application for registration in Form 10A on 22.03.2013 alongwith certificate of registration of Societies, dated 09.11.2012, copy of memorandum of association, copy of Rules and regulation of the Society and copy of statement of affairs upto 06.03.2013. The assessee also filed the balance sheet, income & expenditure account for the year ending 31.03.2013, which is a matter of record. The income & expenditure account has been reproduced by the ld. CIT at page 2 of his order, while granting registration u/s 12AA (1) of the Act. The ld. CIT has to satisfy about the objects of the trust and genuineness of its activities. The ld. CIT(A) has not pointed out any of the object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax (Exemptions) found fault with the language in the trust deed holding that the assessee-trust could not act as a trustee in another trust or institution. He also found that for more than four years, there was no activity worth its name undertaken by the assessee-trust except some small amount of donations and the accounts submitted along with Form 10A were not the audited accounts for three years, as prescribed in Form 10B and, therefore, he rejected the application for registration. The Tribunal held that the Director of Income-tax (Exemptions) had not pointed out how the objects of the trust were not charitable or the activities of the trust were not genuine. In so far as the issue relating to filing of audited accounts for three yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fides of the trust or the activity of the trust but on the ground that the trust had spent low quantum towards charitable activity, the authority had declined registration of the trust. A trust can only do activities within its financial capability. A trust is not measured by its financial clout but by its philanthropic disposition. Therefore, the interpretation given by the original authority declining to register the trust has no legal basis. Hence, the Tribunal was justified in setting aside the order of the original authority." 6. Further, reliance is placed on the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Income Tax-1, vs. Kutchi Dasa Oswal Motor Pariwar Ambama Trust, (supra) and the relevant decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
