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TMI Blog2020 (5) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... rate issue might be examined in assessment proceeding of relevant years. In the instant case the assessee is claiming that it was in the process of establishing educational institution for commencing its charitable activity and thus activity not being commenced, and therefore, the Learned CIT was not required to examine the said activities and reject the registration. But the registration of the assessee society before the register of society shows that the society was resisted prior to financial year 2009. The assessee has not provided any detail of the activities for the period from its establishment till the date for applying registration. In our opinion, the assessee is required to provide all details regarding Constitution of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal receipts so as to get exemption and manipulate their income is not correct. 4. The claim of Ld. CIT (Exemption) that assessee has failed to answer how it actually provide charity to people is not correct since the written action plan was submitted during hearing. 5. The finding of Ld. CIT (Exemption) regarding earning of profit from the medical services is not correct. 6. The assessee craves leave to add, alter, modify or change any ground of appeal, at the time of hearing in the interest of natural justice. 2. Briefly stated facts of the case are that the assessee society is registered under society of the Registrar, Uttar Pradesh and said Registration was renewed for a period of five years from 25- 04-2009 to 25/0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al entity engaged in providing medical services on commercial lines and levying huge fee for the same, without any act of charity. 3. The profit motive of the society is evident from the very basis of the formation of the society where division of the profit amounts various members has been prescribed i.e. Luquman Ali (50%), Nisha Chaudhary (20%), SS Tondon (5%), Anil Saxena (5%), Sunil Saxena (5%), Santosh Saxsena (5%), Amir Khan (5%) and samim (5%). 4. The assessee failed to provide list of various services offered along with the respective charges. 5. According to the Learned CIT, the documents on record do not suffice to establish the genuineness of the activities of the society and provide sufficient material to corroborate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016-17, during which the assessee society had purchased land by way of the money contributed by the members of the society and thereafter construction by way of the loan funds from banks. According to him, the society was formed purely with the motive of distributing share of profit amount of members, which was also pre-decided amount the members. He submitted that funds contributed by the members were also not appear to be from explained sources. According to the learned DR, the assessee is in existence for a very long period and no charitable activity has been shown and thus assessee failed to establish genuineness of the activities and therefore the Learned CIT is justified in rejecting the registration granted under section 12A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Income Tax at such preliminary stage should be restricted to genuineness of the objects and not the activities unless such activities have commenced. The Trust or society cannot claim exemption, unless it is registered under Section 12AA of the Act and thus at that such initial stage the test of the genuineness of the activity cannot be a ground on which the registration may be refused. 9. The Hon ble High Court further held that question of exemption of the application of the income received by way of the donation being a separate issue might be examined in assessment proceeding of relevant years. The relevant finding of the Hon ble High Court is reproduced as under: 23. The question of the exemption of the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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