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TMI Blog2018 (7) TMI 1902X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;the Act']. 2. The assessee is a charitable trust which came into existence pursuant to a deed of declaration of Trust dated 3/4/2017. The object for which the trust was formed was to propagate values of ancient Indian culture through education. The assessee applied for grant of registration u/s 12A of the Act in Form 10A on 25/09/2017. The assessee also made an application in Form 10G for grant of approval to the institution u/s 80G(5)(vi) of the Act on 25/09/2017. 3. As far as the application for grant of registration u/s 12A(a) of the Act is concerned, the CIT(E), Bengaluru, by order dated 02/03/2018, granted the approval. Copy of the said order is at page 9 of the appeal papers. As far as application for grant of approval u/s 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of DIT(E) vs. Meenakshi Amma Endowment Trust (354 ITR 219) held that at the time of grant of registration u/s 12A of the Act as well as approval u/s 80G(5)(vi) of the Act, absence of activities of the Trust cannot be the basis to refuse approval u/s 80G(5)(vi). The following were the relevant observations of the Tribunal: "10. We have considered the rival submissions. It is clear from the impugned orders that the revenue is satisfied that the objects for which the trust was formed was charitable. The only reason assigned for not granting registration u/s. 12A of the Act is that there were no activities carried out by the trust and it was not possible to verify the genuineness of the activities of the trust. According to the revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation the authority cannot come to a conclusion that the trust was not intending to do any activity of charity. In such a situation the objects of the trust have to be taken into consideration by the authority and the objects of the trust could be read from the trust deed itself. In the subsequent returns filed by the trust, if the Revenue comes across that factually the trust has not conducted any charitable activities, it is always open to the authorities concerned to withdraw the registration already granted or cancel the said registration under section 12AA(3) of the Act. 6. A trust could be formed today and within a week registration under section 12A could be sought as there is no prohibition under the Act seeking such registration. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e therefore allow the appeals by the assessee. 4.2 The learned departmental representative relied on the order of the CIT(E). 5. We have given careful consideration to the rival submissions. We are of the view that the contentions put forth by the learned counsel for the assessee are acceptable. The reasons assigned for not granting approval u/s 80G(5)(vi) is directly contradictory to the action of the CIT(E) in granting registration u/s 12A of the Act. In other words, the genuineness of the activities of the trust have, by implication, been accepted by the CIT(A) by his action in granting approval u/s 12A of the Act. We, therefore, set aside the order of the CIT(E) and remand the question of grant of approval u/s 80G(5)(vi) of the Act to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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