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TMI Blog2023 (7) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... :- We have given our anxious consideration to contentions put forth at the Bar. Assessment years under consideration are 1997-98 and 2011-12. The rejection appears to have been made in respect of these two assessment years. In this context, we have perused Tamil Nadu Cricket Association [ 2013 (12) TMI 833 - MADRAS HIGH COURT] - We find that by clause (b) under sub-section (1) of section 12AA the Commissioner requires satisfaction about objects of the trust or institution and the genuineness of its activities. In considering the application for purpose of the satisfaction, the Commissioner had taken into consideration the facts regarding survey, search and seizure, respectively of the assessee s premises as well as its honorary secretary. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eipts from Board of Control for Cricket in India (BCCI) were shown as corpus fund instead of treating them as revenue receipts. The CIT(E) had relied on survey operation under section 133A, conducted in premises of the assessee association along with search and seizure operation under section 132 in residential premises of the honorary secretary. Incriminating documents, books of accounts were found and impounded and demand was raised for block period from assessment year 2000-2001, as confirmed by first appellate authority. In the circumstances, rejection of the application was duly made. The tribunal, setting aside the same by impugned order, gives rise to substantial questions of law, on which the appeal be admitted. 2. Mr. Ray, learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck to the first three heads of charitable purpose, the definition defines purpose in terms of activity. When Sir Samuel Romilly, in the course of his argument in Morice v. Bishop of Durham summarized the main heads of charity, they included relief of the indigent, the advancement of learning, the advancement of religion and the advancement of objects of general public utility . Note the sense of action, of something to be done in relation to an object. When Lord Macnaghten adopted the classification of charitable purposes in Special Commrs. v. Pemsel, he spoke of trusts for the relief of poverty, trusts for the advancement of education, trusts for the advancement of religion, and trusts for other purposes beneficial to the community not f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricket Association v. Director of Income Tax (Exemptions) reported in (2013) 40 taxmann.com 250 (Madras). Paragraph 32 is reproduced below. 32. Thus in contrast to Section 12AA(1)(b) of the Income Tax Act, 1961, where the grant of registration requires satisfaction about the objects of the trust as well as genuineness of the activities, for the cancellation of the registration under Section 12AA(3), all that it is insisted upon is the satisfaction as to whether the activities of the trust or institution are genuine or not and whether the activities are being carried on in accordance with the objects of the trust. Thus, even if the trust is a genuine one i.e., the objects are genuine, if the activities are not genuine and the same not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on the ground of diversion of funds for the benefit of executives of the association in violation of provisions of Section 13(1)(c) of the Act is not justified. The violation of provisions of Section 13(1)(c) of the Act is a matter which is to be looked into by the Assessing Officer while making assessment after grant of registration u/s. 12AA of the Act and the Assessing Officer has to act as per the provisions of law. We, therefore, set aside the order of the CIT(E) and direct him to grant registration to the assessee society u/s.12AA of the Act. Thus, this appeal of the assessee is allowed. 6. We admit the appeal on the following question of law to be answered. Where an assessee seeking registration under section 12AA i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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