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TMI Blog2025 (1) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... o pass an order in writing registering the trust or institution and a copy of the order so passed will be sent to the applicant. Reverting to the facts of the present case in light of the order passed by this Court in Chhattisgarh Urology Society s case [ 2018 (2) TMI 1156 - CHHATTISGARH HIGH COURT] and in view of the finding of the learned ITAT, it is quite vivid that the activities of the assessee Society are for charitable purpose for public at large and in that view of the matter, the learned ITAT is absolutely justified in directing the CIT(E) to grant registration under Section 12AA of the IT Act by setting aside the order of the CIT(E), as such, the order impugned passed by the ITAT is in accordance with law. Accordingly, the finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ology business Incubators in the State; to start up incubated in the State to have funding raised from Venture Capitalists, Financial Instituted and Angel Investors; etc.. Opportunity was provided to the assessee on 30-11-2018 by issuing notice to explain the genuineness of activities claimed by him, which he responded and has submitted his written submission on 31-12-2018 and ultimately, the Joint Commissioner of Income Tax (Exemption) and the Assessing Officer (Exemption) have not recommended the case of the assessee for grant of registration holding that the assessee is not involved in any charitable activity. Ultimately, by order dated 30-1-2019, the application filed by the assessee under Section 12AA of the IT Act was rejected by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (a) or clause (aa) or clause (ab) of sub-section (1) of section 12A, shall (a) xxx xxx xxx (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities as required under sub-clause (i) of clause (a) and compliance of the requirements under sub-clause (ii) of the said clause, he (i) shall pass an order in writing registering the trust or institution; (ii) xxx xxx xxx and a copy of such order shall be sent to the applicant: 7. A careful perusal of the aforesaid provision would show that the Principal Commissioner or the Commissioner has to satisfy himself about the objects of the trust or institution and the genuineness of its activities as required under sub-clause (i) of clause (a) and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound is considered to be affecting the genuineness of the trust, people successful in different walks of life would never engage in charitable activity. 11. In the matters of Commissioner of Income Tax vs Vijay Vargiya Vani Charitable Trust (2014) 271 CTR 0698 (Raj) and Fifth Generation Education vs Commissioner Income Tax (1990) 185 ITR 634 All, it is held that at the stage of Section 12A, the Commissioner is not to examine the application of income. All that he may examine is whether the application is made in accordance with the requirements of Section 12A read with Rule 17A and whether Form No. 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not. At this Stage, it is not proper to exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion denied are not in accordance with the law when this special purpose vehicle created in the name of the society and funded it by way of grant to develop and improve the economic activities by the state government and it helps start-up entrepreneurship. This is an activity of charitable in nature merely the trust activity has scope outside India is and memorandum of the assessee trust does not include the investment and dissolution clause and utilization of fund, when this trust is promoted by the state Government how it can be termed as commercial in nature. The observation of ld. CIT(E) considering the object for which the society is created is not tenable while granting the registration. In our considered view the society fulfill all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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