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TMI Blog2017 (12) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... rror in following the earlier order. At that stage, the only enquiry required to be conducted was with respect to the object of the trust alone. The objection raised by the Commissioner pertain to matters that may be examined at the stage of assessment. At that stage, if the assessee were to be found to have actually engaged in any non-charitable activity, the benefit of exemption may be denied at that stage in the manner provided by the Act. - Decided against revenue - Income Tax Appeal No. 341 of 2013 - - - Dated:- 14-12-2017 - Hon'ble Bharati Sapru And Hon'ble Saumitra Dayal Singh, JJ. For the Appellant : S.S.C. I.T.,Krishna Agrawal For the Respondent : M.M. Rai, Lokesh Mittal ORDER Heard Sri Krishna Agrawal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t's order dated 26.07.2013 has allowed the assessee's appeal by following the judgment of a division bench of this Court in the case of Hardayal Charitable and Educational Trust Vs. CIT passed in Income Tax Appeal No. 107 of 2012 decided on 15.03.2013. In that judgment that is quoted by the Tribunal in its order, this Court had held as below: The preponderance of the judicial opinion of all the High Court including this court is that at the time of registration under Section 12AA of the Income Tax Act, which is necessary for claiming exemption under Section 11 12 of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in the process of its initiation. Where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return is filed by the Trust and is examined by the Income Tax Officer. The question as to whether the donations by the societies was the expenditure of the Trust for charitable and religious purposes will be examined at the time of examining the return. In the result the income tax appeal is allowed. All the three substantial questions of law formulated as above are decided in favour of the assessee, and against the revenue with a clarification that the registration under Section 12AA and approval under Section 80G would not by itself entitle the Trust for exemption of the income of its donors or of the Trust for the assessment year 2011-12. For claiming such exemption the returns of the donor and the Trust will be examined, for ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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