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TMI Blog2015 (12) TMI 1841X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration u/s 12A was rejected - In view of our finding that registration u/s 12A, assessee is entitled for registration u/s 80G of the Act as well. - ITA Nos.1216 & 1217/Bang/2015 - - - Dated:- 30-12-2015 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER And SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For the Appellant : Shri Suresh Krishnan, CA. For the Respondent : Shri Muzaffar Hussain, CIT(DR). ORDER Per VIJAY PAL RAO, JM : These two appeals by the assessee are directed against two separate orders, both dated 13/7/2015 of CIT(Exemption) [ CIT(E) for short], passed u/s 12AA and sec.80G(5) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] respectively. 2. The assessee is aggrieved by the impugned orders of the CIT(E) whereby application of the assessee for registration u/s 12A as well as u/s 80G have been rejected. 3. First we take up the appeal against rejection of application for registration u/s 12A. 3.1 We have heard learned AR of the assessee as well as learned DR and considered relevant material on record. Learned AR of the assessee has submitted that the CIT(E) asked assessee to furnish various details and cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supported the impugned orders of the CIT(E) and submitted that at the time of granting registration u/s 12 A as well as recognition u/s 80G, the authority has to satisfy himself about objects of the trust and genuineness of the activity. The assessee failed to produce necessary details and documents to satisfy the authority about these requirements. 3.3 We have considered the rival submissions as well as relevant material on record. The assessee trust was created vide trust deed dated 15/10/2014. The objects of the trust are narrated in clause 4 as under: a) To Providing relief to the poor and advancing any other object of general public utility. b) The Trust will no carry out any activities with the intention of earning profit for the personnel but only for trust fund raising and will perform with services motive only. c) To establish, run, support and grant aid / rural assistance to schools, medical colleges. nursing institutions, training centres, libraries, reading rooms, universities, hospital, laboratories, research, diffusion of knowledeamongst blind students and other institutions for moral and value based education, coaching, guidance, counseling vocational an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date, no donation was received by the assessee. Further, there was no investment made by the assessee in the movable or immovable as on date. As regards inconsistency in clause 4(f), assessee filed amended deed in compliance of the objection/inconsistencies pointed by the CIT(E). Assessee filed proof vide letter dated 26/01/2015 regarding charitable work done by the assessee in respect of providing lunch to the children of Navajeevana Society as well as free books and stationery to 10 children of DSM Memorial English School. Apart from this, assessee has also filed up-to-date bank statement showing all the transactions till date. As it is clear from the reply of the assessee and details as well as documents furnished that the assessee has complied with queries raised by the CIT(E). However, CIT(E) has rejected the application of the assessee by observing that the assessee is not interested in prosecuting its application and therefore, deserves to be dismissed on this account. Once assessee has brought on record all requisite details as well as amended trust deed, then the observations of CIT(E) in the impugned order is inconsistent with the material and record filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the trust, one cannot expect them to do activity of charity immediately and because of that situation the authority cannot come to a conclusion that the trust was not intending to do any activity of charity. In such a situation the objects of the trust have to be taken into consideration by the authority and the objects of the trust could be read from the trust deed itself. In the subsequent returns filed by the trust, if the Revenue comes across that factually the trust has not conducted any charitable activities, it is always open to the authorities concerned to withdraw the registration already granted or cancel the said registration under section 12AA(3) of the Act. 6. A trust could be formed today and within a week registration under section 12A could be sought as there is no prohibition under the Act seeking such registration. The activities of the trust have to be considered if such registration is sought much later than the formation of the trust or after expiry of the earlier registration granted in favour of the trust, Therefore, in a case of this nature where the trust has approached the authority for registration under section l2A within a span of eight months of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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