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TMI Blog2024 (1) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Ananda [ 2020 (2) TMI 1293 - SUPREME COURT] since the actual activities of the trust cannot be the deciding factor while granting the registration u/s 12A but the object of the trust should have been looked into, the activities have to be looked into by the Assessing Officer at the time of assessment proceedings. It is also a fact that the trust was formed with charitable objects eligible for approval u/s. 12AA of the Act, which is substantiated by the department itself by granting registration u/s 12AA. In such circumstances, we are of the considered opinion that the rejection of application for registration u/s 12AA of the Act by Ld CIT(E) was an erroneous application of law, thus, cannot sustain, accordingly we quash the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tility, which are far exceeds the allowed limit of 20%. 3. Against rejection order of the CIT(E), the assessee is in appeal before the Tribunal. 4. Ld. AR before us submitted that the assessee is registered under Public Trust Act by SDO, Kharasia on 29.12.1978, copy of order furnished in assessee s Paper Book. This trust was formed by the prominent citizens of Kharasia, Shri Lakhiram Agarwal and Shri Niranjan Agarwal. The assessee trust was created for charitable objects like Renovation, repairs, addition, alteration and construction of immovable property vested in the trust for the benefit and facilities of general public utilities without any difference in cast and creed, give grants and aid for promotion and support of Libraries, R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instead the objects of the trust should have been the basis that whether the same are genuinely charitable in nature or not?, on this aspect Ld AR of the assessee relied on the judgment in the case of Ananda Social Educational Trust V. CIT, reported in [2020] 426 ITR 340 (SC)[19-02-2020], wherein Hon ble apex court has held as under:- 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 genuinely charitable in nature and whether the activities which the Trust proposed to car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the trust. but the same was not considered by Ld CIT(E). 6. Ld AR further drew our attention to page 69 of the paper book furbished therein Section 2 of the Income Tax Act 1961, which is extracted as under:- Section - 2. Income-tax Act, 1961-2021 2. In this Act, unless the context otherwise requires, (13) business includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture; (15) charitable purpose includes relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnished before us. Therefore, it was the contention of the Ld AR that department cannot take 2 stands on the same issue, accordingly, the order of rejection Ld CIT(E) towards the application made on 21.03.2016 by the assessee trust was under mistaken belief and deserves to be quashed, consequently, the assessee should be granted the registration u/s 12AA. 9. Ld. CIT-DR, on other hand, relied on the order of the CIT(E). Refuting the contention of the assessee that an undertaking for dissolution was filed by the assessee is not emanated from the order of Ld CIT(E) since there is no mention about such a submission by the assessee. Ld CIT-DR submitted that the Ld CIT(E) has rightly rejected the application of the assessee after verifying all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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