9911796707
TMI Blog2021 (10) TMI 677X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the first date of hearing was fixed by ld. CIT(E) as 23.06.2020 but on that date the assessee filed application for adjournment and in this respect our attention was invited to P.B. pg. 47 where a copy of such adjournment application was placed and our attention was also invited to pg. 48 where the ld. CIT(E) had himself fixed the next date of hearing for 09.07.2020. The ld. AR submitted that instead of waiting for 09.07.2020 the assessee on 26.06.2020 itself filed complete reply to the query raised through questionnaire and in this respect our attention was invited to P.B. pgs. 65 to 299 wherein the various annexures including copy of PAN card, Form-10A, note on activities, copy of ITR for three years along with their audit reports ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. AR filed certain evidences and submitted that though he will not insist upon the Bench to accept these additional evidences but these are just to demonstrate that assessee did carry out the charitable activities during the F.Y. 2019-2020 but since the time to file return of income for AY 2020-21 was not due and such accounts had not been audited during that period of proceedings therefore these were not filed with ld. CIT(E) and neither these were required to be filed. It was submitted that note on activities of the assessee were already there before ld. CIT(E) and our attention was invited to pgs. 285 to 287 where a copy of such note was placed and it was argued that Hon'ble Supreme Court in the case of Ananda Social & Educati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the assessee may be dismissed. 4. We have heard the rival parties and have perused the material placed on record. We find that assessee filed application for registration u/s. 12A of the Act on 22.01.2020 and first date of hearing was fixed on 23.06.2020 but on that date the assessee filed adjournment application a copy of which is placed at PB pgs. 47 and the ld. CIT(E) fixed next date of compliance on 09.07.2020. Copy fixing such date is placed in PB 48. However, before the date of 09.07.2020 the assessee filed reply to all the queries raised by ld. CIT(E) a copy of which is placed in PB pg. 49 to 299. Such reply includes copies of ITR for earlier three years along with copy of audit reports, certified copy of trust deed, copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust deed and has only discussed the original trust deed and held that the irrevocability clause is not there whereas he should have taken into account the supplementary trust deed also which was available with him before the date of passing order on 09.12.2020. Therefore, this argument of ld. CIT(E) is not valid. As regards the other objection regarding not carrying out of charitable activities, we find that the note on activities conducted during last three years is placed at pgs. 283 to 287 which was also before him and coupled with the objects stated in the trust deed the ld. CIT(E) should have granted registration to the assessee which he has not done and rejected the application on flimsy grounds of not having undertaken any charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing for the appellant Director of Income Tax and find that it is not possible to agree with the same. The purpose of section 12AA of the Act is to enable registration only of such trust or institution whose objects and activities are genuine. In other words, the Commissioner is bound to satisfy himself that the object of the Trust are genuine and that its activities are in furtherance of the objects of the Trust, that is equally genuine. 12. Since section 12AA pertains to the registration of the Trust and not to assess of what a trust has actually done, we are of the view that the term activities in the provision includes proposed activities. That is to say, a Commissioner is bound to consider whether the objects of the Trust are genui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Service Society (Supra) suggest that the Commissioner of Income Tax had observed that the applicant for registration as a Trust had undertaken activities which were contrary to the objects of the Trust. 16. In the result, we find that there is no reason to interfere with the impugned judgment of the High Court of Delhi. The appeal is, accordingly, dismissed. CIVIL APPEAL NO.1727/2020 (@SLP(C) NO.25761/2015) 17. Leave granted 18. In this case, the Trust which applied for registration under section 12AA of the Income Tax Act, 1961, was found not to have spent any part of its income on charitable activities. The Commissioner of Income Tax, therefore, refused the registration of Trust. 19. The Income Tax Appellate Tribunal reversed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
