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TMI Blog2021 (4) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable or not and also to satisfy himself about the genuineness of the activities of the trust or the institution. Commissioner is not to examine the application of income at this juncture. The Hon'ble Supreme Court in CIT v. U.P. Forest Corpn. [ 1998 (3) TMI 5 - SUPREME COURT] , held that in order to take advantage of the provisions of section 11 of the Act, the trust or the institution has to get itself registered. Whether the income of the institution can be regarded as being held for charitable purposes and whether the institution is entitled to registration under section 12A of the Act, requires investigation of facts. In view thereof, section 12AA recognizes the principle laid down by the Hon'ble Supreme Court and Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... center for providing better health service; to establ ish and run gaushala. 3. The ld. CIT (E) examine the accounts of the assessee and the bank statements wherein ₹ 3,37,700/- has been debited to S.K. Motors Pvt. Ltd. and an amount of ₹ 1,50,000/- to Goel Jewellers. The ld. CIT (E) found that the expenses shown in the income and expenditure accounts pertain to Bhandara expenses. The ld. CIT (E) also held that the activities of the trust reveal that the trust has restricted itself to religious activities only and hence not covered under definition of charity as explained u/s 2(15) of the Act. 4. During the hearing before us, the ld. AR argued that ₹ 53,00,000/- shown in the provisional financial statement wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that the decisions in the case Suchinta Educational Society and Hardayal Charitable and Educational Trust have been reversed. In the case of Savior Charitable Trust and Jagannath Gupta Family Trust dealt with non-identification of donors whereas the case of Corbett Educational Society dealt with diversion of income to the family members. Thus, we find the case relied by the ld. DR are not applicable to the facts of the instant case. 8. With the background of the applicant, it would be pertinent to point out the extant provisions guiding the grant of exemptions u/s 12A. The provisions of Section 12AA are as under: The [Principal Commissioner or] Commissioner, on receipt of an application for registration of a trust or institu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the income which he claims to be for charitable purposes is to make an application for registration of the trust or the institution in the prescribed form and in the prescribed manner to the Commissioner within the stipulated period of creation of the trust or the establishment of the institution. On receipt of the application in the requisite form No.10A along with Instrument of creation of the trust or the institution, the procedure for registration of the trust or the institution by the Commissioner is provided under section 12AA of the Act. 11. Admittedly, at the time of grant of registration the Commissioner is not empowered to examine the application of income but he has to examine whether the application is made in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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