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TMI Blog2025 (2) TMI 716X X X X Extracts X X X X X X X X Extracts X X X X ..... n claimed genuinely or not. If the assessing officer is not convinced it is always open for him to decline grant of exemption. X X X X Extracts X X X X X X X X Extracts X X X X ..... ich no evidences were provided. Medical and were given to poor people for which neither medical bills or details of persons (beneficiaries) were available. Shri Rajeev Goyal. who attended the proceedings on 27.02.2008 also not provided any supporting evidences. A trust is required to fulfil the following two conditions for getting itself registered under section 12A(a) of the Act: a) The objects of the trust/ institution should be charitable in nature. b) The activities of the trust/ institution should be genuine. The above requirements are mandatory in nature for granting registration to a trust/ institution under section 12A(a). It is, however, observed that activities claimed to be carried out by the assessee are not verifiable till now from the date of creation of trust. The said trust has not done any work of charitable nature till now and that by relying on the decision of Hon'ble Kerla High Court in the case of Self Employers Service Society Vs. CIT (247 ITR 118), the request/application for registration is at a premature stage and the trust should come up for registration if it had I actually done any work. Head note of the judgment read as under:- "In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax, Alwar where the application of the assessee for registration was rejected and he has also relied upon the decision of Kerala High Court in self Employers service society vs. CIT 247 ITR 118 head note of the judgment reads as under: "In the present Case, admittedly, the society has not done any charitable work during the relevant period, on the other hand, the activities which they have carried on during the period were only for the purpose of generating income for its members. There were no materials before the Commissioner to be satisfied of the genuineness of the activities of the trust or institution. Under these circumstances, rejection of the application cannot be termed as illegal or arbitrary." 3.1 However, tribunal while considering., the matter has rightly considered the very object of the registration in para no.4 and held as under: "We have heard the rival contentions and perused the facts of the case. The trust was carried on 1.1.2008 and the application in form no. 10A was filed on 18.2.2008 for seeking registration u/s 12A(a) of the Act. As per Section. 12AA(1), there is a procedure for registration where the Commissioner on receipt of such appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fervent appeal to us to refer this to a larger bench. According to him having regard to the specific provision of 12-AA and more particularly the language, the ultimate findings recorded by the Court in Ananda Social (supra) in para 12 runs contrary to the very object of Section 12-AA. Para 12 of the Ananda Social (supra) reads thus:- "12. Since Section 12-AA 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 carry on are genuine in the sense that they are in line with the objects of the trust. In contrast, the position would be different where the Commissioner proposes to cancel the registration of a trust under sub-section (3) of Section 12-AA of the Act. There the Commissioner would be bound to record the finding that an activity or activities actually carried on by the trust are not genuine being not in accordance with the objects of the trust. Similarly, the situatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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