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TMI Blog2018 (2) TMI 1948X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 12A nowhere empowers the CIT to assess the objects vis-a-vis the donation received in the first year of its establishment. In a given case it may happen that the trust is not able to commence the charitable activities for various reasons, however, that may not be conclusive of the fact that the trust does not intend to carry on the aims and objects for which it is established. If the aims and objects clearly project the activities of the trust to be charitable in nature, it is not the stage for lifting the veil and assessing whether those activities are actually carried on at the first year of establishment of the trust. In the matters of Commissioner of Income Tax vs Vijay Vargiya Vani Charitable Trust ( [ 2015 (2) TMI 67 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Heard. 2. Revenue has preferred this appeal under Section 260-A of the Income Tax Act, 1961 (henceforth 'the Act, 1961') assailing the legality and validity of the order passed by the Income Tax Appellate Tribunal, Raipur Bench, Raipur, whereby the appeal preferred by the respondent has been allowed and consequently the respondent has been directed to be registered under Section 12A of the Act, 1961 for the applicability of Sections 11 and 12 thereof. 3. The short question arising in this appeal is whether the Appellate Tribunal has rightly allowed the respondent's appeal to grant registration under Section 12A of the Act despite the fact that before the Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of charitable activities because at the stage of Section 12A the CIT is not required to examine the application of income or donation or carrying on any charitable activity by the trust. 7. It is argued that even if the details of donation or the income is not to be seen at this stage, the details of charitable activity was germane for the issue because such details would furnish information about the charities extended by the trust. It is further argued that such documents were absolutely relevant to determine as to whether the application is genuinely filed or the object of the trust is infact charitable or not. The Tribunal has thus not appreciated the issue vis-a-vis the requirement under Section 12A of the Act, 1961. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the trust is established. The same is reproduced hereunder for ready reference: 1. To offer monetary assistance/grant for its utilization for the welfare of general public like providing education to the poor and deserving people, spreading awareness among people for the advancement of education, health and hygiene. 2. To establish and promote social, spiritual, health and education tendency among people. 3. To provide help and relief of the people suffering from unforeseen situations during emergency. 4. To establish and promote the tendency of human welfare among people. 5. To work for promotion and development of children, women and youth. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. The provision contained under Section 12A nowhere empowers the CIT to assess the objects vis-a-vis the donation received in the first year of its establishment. In a given case it may happen that the trust is not able to commence the charitable activities for various reasons, however, that may not be conclusive of the fact that the trust does not intend to carry on the aims and objects for which it is established. If the aims and objects clearly project the activities of the trust to be charitable in nature, it is not the stage for lifting the veil and assessing whether those activities are actually carried on at the first year of establishment of the trust. 12. In the matters of Commissioner of Income Tax vs Vijay Var ..... X X X X Extracts X X X X X X X X Extracts X X X X
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