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TMI Blog2020 (2) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to mention here that the salary paid is much less than the prevailing salary. There is no direct or indirect benefit given to the members, rather they were being paid consideration for the services rendered. The scope at the time of processing the application u/s 12AA of the Act is to satisfy with regard to the objects of the trust or the institution and the genuineness of its activities. Apart from the objections mentioned above, the CIT had not recorded any dissatisfaction with regard to the objects of the assessee or with regard to the genuineness of its activities. Tribunal rightly concluded that the issue with regard to violation of Section 40A(3) of the Act and the nature of donations received can be duly considered while fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Registering Authority which was lacking? (ii) Whether on the facts and circumstances of the case the Hon'ble ITAT has disregarded the facts that Smt. Sunita and Smt. Sangeeta, being members of the trust, were shown as houses wife in MOA, whereas they were receiving salary as teachers? (iii) Whether on the facts and circumstances of the case the Hon'ble ITAT was justified in not upholding the facts that the activities of the assessee society were not in accordance with the objects as per its aims and objectives in the Memorandum of Association, merely by stating that it would be seen at the time of assessment? (iv) Whether on the facts and circumstances of the case the Hon'ble ITAT was justified in holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess and professional income. Lastly that the assessee had claimed corpus fund donations of ₹ 3,41,000/- for construction of building, whereas the donations were regular donations. Accepting the report, CIT vide order dated 27.10.2014 refused registration under Section 12AA of the Act. Aggrieved of the order, appeal was preferred. The Tribunal recorded a specific finding that salary paid to Smt. Sunita and Smt. Sangeeta was much less than the salary fixed by the Government for PGT Teachers. It was further held that Smt. Sunita was M.Com., B.Ed. and Smt. Sangeeta was M.A. in Hindi and B.Ed. The Tribunal allowed the appeal on 12.10.2017 holding that the issue with regard to violation of Section 40A(3) of the Act and with regard to do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant: xx xx xx 13. (1) Nothing contained in section 11 or Section 12 shall operate so as to exclude from the total income of the previous year of the erson in receipt thereof-- xx xx xx (c) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof-- (i) if such trust or institution has been created or established after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or (ii) if any p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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