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TMI Blog2023 (3) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... restrictive and not in the interest of public at large rather it is misused as an instrument in the hands of trustee/members and thus, the activities carried out by it are not genuine by any definition. The assessee has merely alleged that PCIT(Exemptions) has not considered completely the information/ evidence brought on record in correct perspectives while denying the registration u/s 12AA - The assessee failed to file corroborative documentary evidence before the PCIT and even before us, in rebuttal to the observation of the PCIT that the activities of Applicant trust were not in consonance to the objectives of the Trust. In our view, the appellant Trust was not established for the purpose of charity. Meaning thereby that the appellant Trust was involved in activities which are not genuine by any definition. Since, the appellant Trust, is an ongoing entity, at the stage of grant of registration u/s 12AA of the Act, the Ld. CIT(Exemption) is supposed to examine both the objects of the Trust and genuineness of its activities in consonance to its objectives. In the present case, the appellant Trust has been an ongoing entity, actually carrying its activities, therefore, the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chool, reading rooms, dispensary, organize cultural shows audiovisual shows or any other such activities etc etc as per clause (d, e & f). It has been mentioned para 2 that "The Society undertakes the development & maintenance of the Gurudwara Sahib situated at Balluana. The society will maintain, repair and expand the Gurudwara Sahib for all types of Religious Charitable Purpose." These activities are covered by charitable purpose as the society has filed copy of income and expenditure account in which the major portion of receipts is from lease money which has been spent towards construction /renovation for the Gurudwara Sahib building and the building account shows a balance of Rs. 1781529/- towards assets side as on 31/03/2018 as against lease (Rent) receipt of just 650000/- for the said year. Thus the observation of the Id CIT exemption that the major expenditure are towards langer and no other major expenditure, is totally false. The applicant has incurred expenditure of Rs. 1781529/- towards construction of the Gurudwara Sahib building during the two years i.e. 2016-17 & 2017-18. Your kind attention is drawn towards CIT v. Guryani Brij Balabh Kaur Trust(1980) 125 ITR 381 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant submitted the response to the additional queries. On perusal of the submission it was observed that the applicant society has not submitted the certified copy of memorandum of association and bye-laws which the applicant has submitted in the office of registrar of societies and firms/Joint stock Companies. In the absence of which the genuineness of activities of the society can be corroborated with the stated aims and objects the genuineness of the activities. Besides this, the constitution of the society also doesn't have Utilization clause, Investment clause and Beneficiary clause. The absence of these important clauses, make a society revocable, not enuring to the benefit of general public and open to any possibility of society property being utilized for the benefit of the members of the society, hampers its quest for registration. It is pertinent to mention that the society may, if it so desires, file a fresh application after removing the deficiencies as explained in the above para and also if there were any new circumstances that required fresh application. 8. Further, the aims & objectives mentioned at Sr. No. 1 & 2 are restrictive in nature which are reprodu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant and citations filed before us. The PCIT (E ) stated that the applicant society has not submitted the certified copy of memorandum of association and bye-laws as submitted in the office of registrar of societies and firms/Joint stock Companies. In the absence of which the genuineness of activities of the society can not be corroborated with the stated aims and objects and the genuineness of the activities thereof. The appellant submitted that he society undertakes the development & maintenance of the Gurudwara Sahib situated at Balluana and the society will maintain, repair and expand the Gurudwara Sahib for all types of religious, charitable. Since, these activities would be restricted to specific group i.e. people of village Balluana and the same cannot be claimed to be enduring to the benefit of the general public and prima facie none of the activities claimed to be undertaken as observed by the PCIT(E) that withdrawal made from bank by Mr. Sadhu Singh and issue of property leased etc are covered by any of the limbs of "charitable purpose" envisaged in section 2(15) of I.T. Act, 1961. Moreover. Further gets exacerbated by the fact that apart from the expenses on longer char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot genuine by any definition. 11. The assesse has merely alleged that the Learned Principal Commissioner of Income tax (Exemptions) has not considered completely the information/ evidence brought on record in correct perspectives while denying the registration u/s 12AA of the Income Tax Act, 1961. The assessee failed to file corroborative documentary evidence before the PCIT and even before us, in rebuttal to the observation of the Ld. PCIT that the activities of Applicant trust were not in consonance to the objectives of the Trust. In our view, the appellant Trust was not established for the purpose of charity. Meaning thereby that the appellant Trust was involved in activities which are not genuine by any definition. 12. Since, the appellant Trust, is an ongoing entity, at the stage of grant of registration u/s 12AA of the Act, the Ld. CIT(Exemption) is supposed to examine both the objects of the Trust and genuineness of its activities in consonance to its objectives. In the Judgement given by the Hon'ble Supreme Court in the case of M/s Anand Social and Educational Trust v/s CIT in Civil Appeal No.5437-5438/2012 vide order dated 19/02/2020 is not applicable to the fact of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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