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TMI Blog2021 (7) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... sing to grant registration of the appellant Trust u/s 12AA of the Income Tax Act, 1961 on the ground which are not relevant for the purpose of granting registration u/s 12AA of the I.T. Act, 1961. 2. The Learned Commissioner of Income Tax (Exem), Pune erred in considering the activity of providing Primary and Secondary education is not a charitable activity and thereby erred in granting registration u/s 12AA of the I.T. Act, 1961. 3. The Learned Commissioner of Income Tax (Exem), Pune erred in considering activities of providing Primary and Secondary education as a business model and not genuine educational activities and thereby erred in granting registration u/s 12AA of the I.T. Act, 1961". 2. The solitary grievance of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution, the assessee was liable to pay tax and without the payment of the tax, registration u/s 12AA of the Act cannot be granted. 5. We find that ld.CIT(E) has not found fault with the objects of the assessee trust nor has given any specific finding whether the activities of the trust are un-genuine. More so, he has not raised any doubt regarding the charitable nature of the objects of the trust or the genuineness of the activities of the trust. The only reason why the application for registration u/s 12AA of the Act of the assessee was rejected by the ld.CIT(E) was that on the corpus fund created through receipt of donations the consequent taxes which were supposed to be paid were not paid by the assessee at the time of making the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd being income, it was liable for tax. That since the consequent taxes on those receipts were not paid by the assessee, the application u/s 12AA of the Act was refused by the ld.CIT(E). We were faced with identical issue on similar facts and circumstances while deciding the case of Shree Lakdipool Vitthal Mandir (supra) which has been relied on by the assessee. In that case also, the assessee trust had collected voluntary donations and ld.CIT(E) was of the opinion that all these voluntary contributions forms part of the corpus fund of the trust and hence, it is income of the assessee. Thus, on the said income, assessee trust was liable to pay the tax as per law. Since the requisite taxes were not paid by the assessee trust, the ld.CIT(E) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e whether the objects of the trust are charitable or not. At that stage, it is not proper to examine the application of income." 6.2 That further, the Department in this case before us has not disputed the objects of the trust or genuineness of activities conducted by the assessee trust. In this scenario, it was observed by the Pune Bench of the Tribunal in the case of Kai Shri Mahadebrao Naykude Dnyanvikas Prabhodhini Trust Vs. Commissioner of Income Tax (Exemption) (2020) 208 TTJ (Pune) 296 that when the objects of the trust were not disputed by the Department, nor they have disputed genuineness of activities of the assessee trust, then non filing of return u/s. 139(4A) of the Act cannot be the ground to deny registration u/s.12AA of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA of the Act includes "proposed activities. At the time of granting registration, the only issue to be examined by the Ld. CIT(Exemption) is regarding the true nature of the objects of the trust i.e. whether charitable or not. 9. In the present case, the objects of the trust are not doubted by the Department and they have also not disputed the charitable nature of the activities conducted by the assessee trust. Meaning thereby, all the relevant records were submitted before the Ld. CIT(Exemption) and he had verified the same and was satisfied on this aspect fulfilling the requirement of Section 12AA of the Act. Shree Lakadipool Vitthal Mandir Considering the aforesaid judicial pronouncements, facts and circumstances in this case, we ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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