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TMI Blog2019 (6) TMI 1629X X X X Extracts X X X X X X X X Extracts X X X X ..... enying the registration u/s 12AA of the Act by observing as under: "4. The applicant was also intimated that in the absence of Balance Sheet, Income Expenditure, Receipts & Payments accounts, it was difficult to verify genuineness a: nature of activities. The applicant was further asked to provide a rationale why registration should be granted in the absence of any apparent charitable activity being pursued. No one attended on the date fixed. Given the non-compliance on the several occasions afforded the assessee, it becomes evident that the applicant appears not interested in pursuing the matter. In the absence of submissions regarding the activities, it is difficult to verify both the objects & genuineness of activities of the trust that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... py of such order shall be sent to the applicant : Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. From the contents of the Sec.12AA, it encompass that the Ld. CIT(E) in order to satisfy himself about the genuineness of the activities of the trust or institution can call for such documents or information from the trust or institution as he thinks necessary and also empowered to make such enquiry as he may deem fit necessary in this behalf. Second Clause deals with that after satisfying himself about the object of the trust or institution and the genuineness of the activities, he shall pass order in writing either to register or refusing to registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, the CIT is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust, set up to achieve its objects of enabling educational institution, is in the process of establishing such institution and receives donations, the registration u/s 12AA cannot be refused, on the ground that the Trust has not yet commenced the charitable or religious activity". Co-ordination Bench of ITAT, Amritsar in the case of Ek Umeed Welfare Society, Fazika Vs. Assessee in ITA No.615(Asr)/2013 , directed to grant registration to the society where the registration was denied by the CIT on ground of negligible activity till the date of registration". 3.2 Let us to consider reasons for rejection o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wly registered trust to qualify itself for registration under Section 12AA of the act and wait till the activity commence. From the conjoint reading of the aforesaid judgments, it can be safely concluded that even otherwise if no activity was carried out by a trust or institution, still registration can be granted by the CIT(E) and even otherwise it is not the case of the Revenue that at the time of consideration of application of the Assessee, the assessee has carried out many activities and their genuineness were in doubt. 3.4 Before us the assessee trust has provided certain details about charitable activities (page no.54 to 61 of PB) and also filed audit report along with the balance sheet for the Financial Years:2016-17 to 2017-18 & 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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