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TMI Blog2020 (10) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... s 12AA(1)(b)(ii) to the appellant Trust without giving any opportunity of being heard. 2. The ld. CIT erred in law and on facts in holding that genuineness of activities is not established. 3. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing." 3. The brief facts of the case are as under :- The appellant, namely, Dr. N T Ghatte Charitable Trust is a trust formed on 02.04.2014 and is registered under the BPT Act, 1950 vide registration number E-2173/Sangli dated 13.07.2015 with the following objects :- "1) Establishment, acquisition, construction and/or maintenance or support of primary schools, high schools, colleges, vidyapeeths, study centers, medical colleges, technical col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption) had called upon the applicant through ITBA portal on 05.01.2019 to furnish certain information/clarification. In response to the same, the appellant uploaded the information on 01.02.2019. On perusal of the said information furnished by the appellant trust, the ld. Commissioner of Income Tax (Exemption) had concluded that the appellant society had not carried on any charitable activities during the last three financial years and based on this findings, the ld. Commissioner of Income Tax (Exemption) held that the genuineness of charitable nature of the activities is not established, accordingly, he denied the registration u/s 12AA of the Act vide order dated 22.06.2019. 5. Being aggrieved by the order of ld. Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. Commissioner of Income Tax (Exemption) that the objects of the appellant society are not charitable in nature. The reasoning of the ld. Commissioner of Income Tax (Exemption) is not tenable under the law in view of the recent judgement of the Hon'ble Supreme Court in the case of Ananda Social and Educational Trust (supra) wherein the Hon'ble Apex Court held as under :- "We have given our anxious consideration to the above submissions made by Ms. Aishwarya Bhati, learned Senior Counsel appearing for the appellant - Director of Income Tax and find that it is not possible to agree with the same. The purpose of section 12AA of the Act is to enable registration only of such trust or institution whose objects and activities are genuine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax-II vs. R.S. Bajaj Society" which has taken the same view as that of the Delhi High Court in the impugned judgment. The Allahabad High Court has also referred to a similar view taken by the High Courts of Karnataka and Punjab & Haryana." 9. Further, the Hon'ble Supreme Court in the case of M/s. Ananda Social and Educational Trust vs. CIT in Civil Appeal No.1727/2020 (@SLP (C) No.25761/2015) dated 19.02.2020 held that merely because the trust has not spent any amount of its income for charitable activities and the fact that the trust has not spent any amount of income for charitable purpose does not amount to carrying on the activities contrary to its objects. In the light of legal position discussed supra, the order of the ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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