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TMI Blog2018 (10) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... ties. The findings of the Ld. CIT(E) are vague and are not substantiated through any evidence or material on record. The removal of the Trustee or directions given by the donor etc., are not relevant at this stage and could be considered by the A.O. at the time of considering the applicability of Section 11 of the I.T. Act. No justification for Ld. CIT(E) to reject application for registration under section 12AA. In this view of the matter, we set aside the impugned order and restore the matter in issue to the file of Ld. CIT(E), New Delhi, with a direction to pass appropriate order under section 12AA of the I.T. Act to grant registration to the Assessee-Trust under section 12AA of the I.T. Act within one month from the date of the Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee falls in the last limb i.e., advancement of any other object of general public utility. The Ld. CIT(E) noted that it is a case of service provider and service seeker. Thus, the activities of the Assessee-Trust are in the nature of business for which fees is being charged. The gross receipts of the Assessee-Trust for the period ending as on 31.03.2014 are Rs.l.14 Crores. The Ld. CIT(E), therefore, noted that Assessee- Trust is not entitled for registration under section 12 of the I.T. Act. It is also noted that Shri Pravin Mehrotra is the settlor of the Assessee-Trust, have been disassociated with its activities by giving disclaimer on the website. It was, therefore, noted that it is a very strange thing to disassociate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book. The main objects of the Assessee-Trust is vocational and educational programmes. It is running large number of I.T. Education Centres all over India. The Assessee-Trust is running a large number of courses of duration of 3-12 months i.e., diploma in computer education; diploma in web and designing applications; diploma in hardware and networking also. It is also providing courses in English language both written and spoken. The Ld. CIT(E) while deciding the application for registration, under section 12AA of the I.T. Act, is only required to satisfy himself about the objects of the Trust or Institution and genuineness of the activities. The Ld. CIT(E) is not required to go into unnecessary details which can be examined by the A.O. at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 states i.e., Jharkhand, Madhya Pradesh and Maharashtra and Assessee-Trust has been doing the work as assigned by the Government of India on I.T. Sector i.e., for education only. No business have been done by the Assessee-Trust. The address where Inspector has visited is address of the settler and Assessee-Trust received notice at the same address and filed the replies. Copy of the same are filed at pages 21 and 22 of the paper book. According to the Trust Deed, activities of the Assessee-Trust will be carried-out within India and outside India with requisite permission of respective Governments following Law of the land. He has submitted that till date no activity have been carried-out outside by the Assessee-Trust. He has relied upon dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or institution and the genuineness of its activities, shall pass an order in writing registering the trust or institution, shall, if not so satisfied, pass the order in writing refusing to register the trust or institution. Therefore, according to the above provisions, at the time of grant of registration or refusing to grant registration to a trust or institution, the Ld. CIT(E) shall satisfy himself about the objects of the trust and genuineness of its activities. The Hon ble Allahabad High Court in the case of Hardayal Charitable Educational Trust vs. CIT-II (supra), held that at this stage of enquiry under section 12AA only the genuineness of the objects is to be tested and not the activities which have not commenced. In the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n genuine activities of providing education. Other points raised by the Ld. CIT(E) in the impugned order are not relevant to the enquiry conducted at the stage of grant of registration under section 12AA of the I.T. Act. No evidence or material has been brought on record as to how Assessee-Trust has been doing business activities. The findings of the Ld. CIT(E) are vague and are not substantiated through any evidence or material on record. The removal of the Trustee or directions given by the donor etc., are not relevant at this stage and could be considered by the A.O. at the time of considering the applicability of Section 11 of the I.T. Act. In view of the above facts, the decisions relied upon by the Ld. D.R. would not support the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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