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TMI Blog2021 (8) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... , filed under section 12AA, afresh with the following directions Consider the veracity of evidence claimed to be submitted before the then CIT. Verify the genuineness of the objectives of the assessee trust in the light of evidences prima facie relevant, for the year under consideration for the purpose of grant of registration u/s. 12AA of the Act. Assessee shall cooperate in the proceedings, before the CIT. All pleas available under the law shall remain so available to the assessee in the fresh proceedings before the Ld. CIT. Appeal is treated allowed for statistical purposes in the terms indicated as above. - I.T.A. No. 593/Asr/2017 - - - Dated:- 16-8-2021 - Laliet Kumar, Member (J) And Dr. M.L. Meena, Member (A) For the Appellant : Ashwani Kumar, C.A. For the Respondents : J.S. Kahlo, CIT, D.R. ORDER Dr. M.L. Meena, Member (A) 1. This appeal of the assessee trust is directed against the order dated 31.07.2017 passed by the CIT(E). 1. That the order passed u/s. 12AA(1)(b)(ii) of the Income Tax Act, 1961 by the Ld. Commissioner of Income Tax (Exemptions), Chandigarh is against law and facts on the file as much as he was not justified to arbitra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts responses and making empty claims. 9. The applicant, in its reply dated 25.07.2017 has stated that It is settled law that the scope of the power of the Commissioner is limited to being satisfied about the objects and its genuineness while granting registration . While this may be relevant for newly created entities the same can't be the yardstick for applicants that have been in existence for nearly a decade. In the instant case, neither has any evidence been produced for undertaking any activity as mentioned in the trust deed even after a lapse of ten years nor has any evidence been produced in support of its future claims of imparting education to poor and needy; establishment of a creche etc. In absence of any evidence and unsatisfactory response to the queries raised during the examination of the submission of the applicant, it is impossible to verify the genuineness of the activities of the applicant trust and to that extent, it is impossible to be satisfied about the objects of the applicant trust. 10. In view of the above, the genuineness of the activities of the society cannot be verified and in absence of any concrete reply from the applicant the activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (a) [or clause (aa) of sub-section (1)] of section 17A shall- (a) Call for such documents or information from the society or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the society or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) After satisfying himself about the objects of the society or institution and the genuineness of its activities, he (i) shall pass an order in writing registering the society or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the society or institution.......... 6. The assessee trust applied for registration under section 12AA, which was rejected by the Commissioner concluding that the assessee had not proved its case whether the activities were being run in a charitable manner and the genuineness of the activities of the society cannot be verified and in absence of any concrete reply from the applicant the activities of the trust cannot be termed to fall within the realm of charitable purpose . The reasons which prevailed with the Commissioner was that no evidence had been fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 10. A perusal of section 12AA, (Supra) would go on to show that the Commissioner has to satisfy himself of the objects of the trust and the genuineness of the activities and after giving an opportunity of being heard to the trust or the institution, a refusal can be made to register the trust. Thus, the section gives power to the Commissioner to look into the genuineness of the activities of the trust and to satisfy himself about its activities. Under section 12A, the provisions of sections 11 and 12 shall not apply in relation to the income of any trust or institution unless various conditions are fulfilled. Section 2(15) defines charitable purpose and the same includes relief in education and advancement of any other object of general public utility. In case the utility is carried out in the nature of trade, commerce, business, the proviso provides that the same will not be a charitable purpose. 11. We are of the considered opinion, that the power of the Commissioner is to look into the objects of the Society and the genuineness of the same cannot be doubted when the basis is of non-supply of information. In such circumstances, it would be appropriate that the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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