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TMI Blog2022 (9) TMI 1637X X X X Extracts X X X X X X X X Extracts X X X X ..... f CIT Vs. Vijay Vargiya Charitable Trust [ 2015 (2) TMI 671 - RAJASTHAN HIGH COURT] has categorically held that at the time of granting registration, the objects of the Trust for which it was formed, is only to be looked into and the CIT s satisfaction about genuineness of activities of the Trust was not criteria as the Trust was just commencing activities. Hence the issue regarding satisfaction or genuineness of the activities of the trust is not a matter to be looked into at the time of granting registration u/s 12AA of the Act. Invoking provision of section 13(1)(b) coordinate bench of the ITAT Raipur in the case of Shree Vimalnath Jain Swetamber Mandir Trust [ 2019 (1) TMI 1129 - ITAT RAIPUR] has given the finding by respectfully follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein the assessee has raised the following sole ground :- 1. Ld Commissioner of Income Tax (Exemption) was not justified in rejecting application filed by appellant for registration u/s 12A and in refusing to grant registration without appreciating the facts of the case properly. The rejection order passed by CIT (Exemption) u/s 12AA(1)(b)(ii) is arbitrary, illegal and not justified. The appellant is entitled for registration u/s 12A.; 2. The appellant reserves the right to amend, modify or add any of the grounds of appeal. 2. Facts in brief are that the assessee is a society registered under the Society Registration Act, 1973 before the Registrar of Societies, Chhattisgarh on 27.08.2012. The assessee applied for registration u/s. 12AA of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bye laws of society, the objects and activities are not limited to Satnami Samaj only but to whole public at large. Objects mentioned in clause 4, 6 7 is not for any particular caste and community. It was also submitted by the ld. AR that the source of application of funds by the assessee society is transparent, accounted and for the interest of public. Therefore, the ld. AR submitted that considering the objects and activities of the society, the assessee society is entitled for registration u/s. 12AA of the Act. Also, rejection of the application of assessee society by triggering provisions of section 13(1)(b) of the Act was not called for, since, explanation 2 of the section 13 explains that A trust or institution created or establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elied on the order of ld. CIT(E) and submitted that as the assessee society could not prove the working of the assessee society as charitable purpose, therefore, the CIT(E) has rightly rejected the application of the assessee for registration. Moreover, Ld. CITDR has drew our attention for provisions of section 12AA(1)(a) and (b) and argued that the CIT(E) was well within his powers and it his duty to call for all the necessary documents and information from the assessee trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such enquiries as he may deem necessary in this behalf. After satisfying himself about the object of the trust or instit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation 2 of section 13 relied upon by the assessee is not acceptable because as per the said explanation it will be applicable to a trust or institution created for all schedule castes/tribes and not for a particular samaj or schedule community/caste. (d) Copy of accounts produced before the Ld CIT(E) also does not show any expenses to prove such claim by the applicant that the assessee society is doing charitable work for Satnami Samaj as well as for others. 7. To decide the above raised issues after carefully hearing both the parties, we have gone through the paper book of the assessee trust showing brief activities of the society at page 16-88 which shows that the assessee society is doing charitable activities for others also. 8. Regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been complied with; Accordingly, where the Trust attracts section 13 (1)(b) of the Act and therefore, not entitle to the claim of deduction u/s 11 and 12 of the Act is a matter of concern only at the time of assessment proceedings. 10. The Hon ble Gujarat High Court in the case of Commissioner of Income Tax Vs. Barkate Saifiyah Society, reported in (1995) 213 ITR 492 (GUJ)/(1995) 78 TAXMAN 6, has held that the provisions of section 13(1)(b) will apply only to the Trust which are purely for charitable purposes. If the assessee Trust has objects in both charitable and religious in nature, in such Trust, Section 13(1)(b) is not applicable. On perusal of the bye-laws of the assessee society it is evident that the assessee society has charita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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