2017 (12) TMI 1740

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..... he trust are genuine, at the stage of commencement of institution, registration has to be granted automatically and claim u/s 80G of the Act can be followed with grant of registration. Ld. Commissioner (Exemptions) did not reject the request of the assessee for approval u/s 80G of the Act on the ground of not annexing the registration certificate u/s 12AA of the Act but on the limited ground that it has not undertaken much activity. At the inception of the institution, one cannot expect serious activities, since it needs funds and to obtain funds, the trust needs approval u/s 80G of the Act. Thus, the activities are interlinked with obtaining approval. Hence, mere fact that the assessee could not undertake much activity within the short spa .....

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..... ssee trust had come into existence by virtue of a trust deed dated 13th day of April, 2016 and it was aimed at carrying on charitable activities such as providing medical aid, to impart education, provide food and shelter to the poor needy. It has filed an application for registration u/s 12AA of the Act and also seeking approval u/s 80G of the Act along with relevant declarations. The Ld. Commissioner granted registration u/s 12AA of the Act. However, with regard to the grant of approval u/s 80G of the Act, he observed that the assessee did not carry much of its activity since inception. In fact, the application for approval was made 3 months after its inception and it cannot expect miracle in carrying out its activity within such a shor .....

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..... he activities of the trust are genuine, at the stage of commencement of institution, registration has to be granted automatically and claim u/s 80G of the Act can be followed with grant of registration. Ld. Commissioner (Exemptions) did not reject the request of the assessee for approval u/s 80G of the Act on the ground of not annexing the registration certificate u/s 12AA of the Act but on the limited ground that it has not undertaken much activity. At the inception of the institution, one cannot expect serious activities, since it needs funds and to obtain funds, the trust needs approval u/s 80G of the Act. Thus, the activities are interlinked with obtaining approval. Hence, mere fact that the assessee could not undertake much activity wi .....

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