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TMI Blog2023 (8) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... ration u/s 12AA of IT Act. Even in the case of Reham Foundation Lucknow [ 2019 (10) TMI 151 - ALLAHABAD HIGH COURT ] on which the learned A.R. for assessee has placed reliance, it has been clearly enunciated that registration is subject to satisfaction over genuineness of the activities of the trust and over objects of the trust. In this background, on perusal of the impugned order of learned CIT(E), we find that she has not commented on objects of the assessee trust and on the genuineness of the activities. Further, on perusal of the materials brought for consideration by way of the paper book filed from the side of the assessee trust, we are of the view that these materials are not sufficient for us, to reach a definite conclusion on genu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat appellant was afforded one opportunity only and the CIT (Exemptions), after no apparent action for more than 6 months from the date of the appellant's application for registration under section 12AA, dated 19.10.2019; in less than two months the Ld.CIT(E) proceeded to call for details, examine them and reject the appellant's application vide order dated 30.09.2020. It was held the apparent reason for this hurried disposal of appellant's application by CIT (Exemptions) with undue haste was because as per section 12AA(2) of the act, order for grant or rejection of registration was to be passed before the expiry of 6 months from the end of the month in which the application for registration was received; i.e., in the case on ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the trustees were not aware that the order passed by the CIT(E) for the trust was passed on 30.09.2020 as the trustees did not receive through email which was not accessible to them and later received the order on 22/10/2020, a copy of the death certificate is also enclosed. (A.1.1) During the course of appellate proceedings in Income Tax Appellate Tribunal ( ITAT for short), no objection has been taken against the appellant assessee from Revenue s side by way of Cross Objection u/s 253(4) or appeal u/s 253(2) of the IT Act, on grounds of limitation in filing of this appeal. Further, as per noting of the registry dated 22/12/2020, the appeal filed by the assessee is in order. In view of the foregoing, and as there is no objection to admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nception upto 31.03.2019 Details of corpus donation of Rs. 22,60,000/received by the trust from the main trustee Copy of confirmation of donations and copy of confirmation of loans Proof of investment Copy of statement of bank account maintained in Andhra Bank Copy of undertaking with regard to no infringement of the First Proviso to Section 2(15) Details Evidence of charitable activities Copy of exparte order dated 20.07.2019 passed earlier u/s 12AA(1)(b)(ii) rejecting claim of registration Details of bank account and copies of bank statements Copy of day book, bank statement ledger accounts Copy of bills/vouchers Copy of application in Form 10A e-filed on 19.10.2019 Moreover, copies of the following decisions were also filed from the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT(E). We have heard both sides. We have perused materials on record. (B.1) It is well settled that there are two conjunctive tests to be considered at the time of registration u/s 12AA of ITAT. Firstly, it is to be examined whether the stated objects of the applicant are charitable in nature. Secondly, genuineness of the charitable activities is to be established in reality. The applicant has to pass these two tests cumulatively, and not alternatively. Charity is the core issue for registration u/s 12AA of IT Act. Charity is its soul. Mere declaration of charitable objects is not adequate. Establishing the genuineness of charitable activities is an essential requirement for registration u/s 12AA of IT Act. Even in the case of Reham Foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment of the Jurisdictional High Court in the case of CIT vs. Reham Foundation, Lucknow (Supra) and has argued that the powers of the Tribunal are co-extensive to that of the Commissioner u/s. 12AA of the Act and, thus, it can direct for registration of the trust or institution. However, this power, in our considered view, comes with a caveat i.e. the order of registration can be issued only after recording satisfaction with regard to the genuineness of the activities of the trust as provided u/s. 12AA of the Act. In this Full Bench judgment, the Hon'ble High Court has further held that where the Commissioner has refused to accept application for registration of trust u/s. 12AA of the Act after recording his finding on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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