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TMI Blog2018 (3) TMI 1181X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant failed to prove the genuineness of the activities for charityas prerequisite conditions to be satisfiedfor granting the registration and therefore, he held that the applicant society has not been carrying out genuine charitable activities and furthering the cause of charity. 3. The ld CIT(E), in para-8 has observed that sufficient material required for satisfaction regarding charitable purpose of the trust in this case has not been made available by the applicant. In fact, part reply has been filed by the applicantincompliance to the notices. The CIT(E) held that mere recital of objects and activities without corroborative evidence is not sufficient themselves to enable a registering authority to arrive at the satisfaction mandated by law. Thus, in absence of sufficient material required for formation of satisfaction the applicant claim for registration u/s 12AA was rejected. 4. Before us, the ld Counsel for the assessee submitted that the Assessee Society has been formed with the objects which are charitable in nature; thatit is an educational trust registered with theRegistrar of Societies on 07-10-2016 with the aims and objects as per trust deed (APB6-7); that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mptions), Chandigarh. ITA No. 864/CHD/2016 date of order: 12-01-2017, has held that: "The assessee has filed copy of the Trust Deed which clearly revealed that the aims and objectives of the assessee trust are to run and manage educational institution and to run hospitals and dispensaries etc. Therefore, the main aims and objectives of the assessee trust are charitable in nature. Even this fact is not denied by the CIT (Exemption) in the impugned order. ........ Therefore, there is nothing wrong if assessee started purchasing land for the purpose of establishing educational institution as well as hospital etc. for the purpose of the assessee trust....................At the stage of grant of registration under section 12AA of the Act, CIT is required to examine the objects of the assessee trust and genuineness of its activities. At the time of registration under section 12AA of the Act, which is necessary for claiming exemption under section 11 and12, the CIT (Exemption) is not required to look into the activities, where such activities have not or are in the process of its initiation. Where assessee trust is set up to achieve its objectives of establishing educational/medical ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrying out any charitable activities. Due to non-compliance of assessee society, the genuineness of the activities could not be verified. The ld. CIT, therefore, relying on various decisions including the decisions which have been relied on by the ld. CIT in the present case, rejected the claim of registration u/s 12A(1) of the I.T. Act. When the matter travelled to the Tribunal, the Tribunal allowed the claim of registration by holding that at this stage on granting registration u/s 12A the ld. CIT is required to see the objects of the society and not required to examine the application of income which will have to be undertaken by the Assessing Officer on a year to year basis after the assessee files the return of income claiming exemption u/s 11 of the I.T. Act." 5.5.2 The ITAT Delhi Bench on identical facts in the case of Aasho Charitable Trust vs. CIT (E) ITA No. 5617/Del/2016 order dated: 30-01-2018 has held that: 12. From a bare reading of the above provisions of the Act contained in section 12AA(1) of the Act, it is evident that the CIT has to examine the objects of the trust or institution and the genuineness of the activities. Since in the present case there is no ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iance to the CIT(E)'s letter dated 10/08/2017, the assessee society has furnished required details/ information vide letter dated 20/09/2017 (APB, 16-21) as follows: I. Copy of PAN Card with IT Returns for last 3 years. II. Declaration that no part of incomeor property of the trust has been used for direct or indirect benefit of any person specified in section13(1)(c) of the Act. III. Object has been to establish educational Institutions to impart from primary level to professional level courses. IV. Certified copy of Trust Deed. V. PAN Card/Aadhar Card ID of all trustees of the Trust. VI. The Trust was incepted on 01/07/2016. It is being the first year no activities could be conducted during the year. VII. Details of donations received alongwith name, addresses and amount of donations received since, the inception of the trust till 31/08/2017. VIII. Details of assets- Movable and immovables. IX. Books of account and bank accounts. X. Statements of account, i.e., Balance sheet, ledger, cash book, bank book, Income and expenditure stamen etc. for F.Y. 2016-17 (APB, 22-37) 11. We have gone through the Memorandum specifying the objects of the society (APB-6). In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be expected from the assessee to rebut the case. In the case of Kirti Chandra Tarawati Charitable Society Vs DIT(Exemption) 232 ITR 11, Judgement, delivered by the Hon'ble Delhi High Court was in the context of renewal of approval under section 80G of the 'Act. Thus, none of the case has relevance to the facts of instant case. 15. The Hon'bleJurisdictional Allahabad High Court in the case of 'CIT(E) vs. SheedharSewa Trust Asharfi Bhawan,'(Supra) hasdecided the issue in favour of assessee, consideringit squarely covered by its own DB judgement in the case of 'CIT Vs. R.S. Bajaj Society',(Supra) holding as under: "1................The preponderance of the judicial opinion of all the High courts 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 sections11 and 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 a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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