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TMI Blog2025 (3) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... legation that huge profit was made by running an commercial institute on commercial lines and channelizing the profits earned for augmenting the business without giving any element of charity is without any basis since the activities were yet to be commenced. It is not in dispute that the assessee foundation was incorporated on 06.04.2018 and an application for registration was made 16.04.2018. CIT(E) erred in rejecting the application without bringing any material suggesting that the assessee was not carrying out its activity in accordance with its objects. Moreover, it is not the case of Revenue that the proposed activities are not genuine and such activities are not for educational purposes.CIT(E) ought to have recorded specific finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner of Income Tax (Exemptions). As per the Ld. CIT(E), the assessee foundation was afforded an opportunity. He further observed that relevant evidences regarding activity carried out for educational purposes was not made available by the applicant foundation. Therefore, the application of the assessee was rejected. Aggrieved against this, the assessee is in appeal before this Tribunal. 3. The Ld. Counsel for the assessee vehemently argued that the action of the Ld. CIT(E) is arbitrary and against the facts of the case. Ld. Counsel further reiterated the submissions as made by way of brief synopsis. He further contended that the foundation was incorporated on 09.03.2018, Registrar of companies issued licence on 21.03.2018, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrying out its activity in accordance with the objects. Therefore, he prayed that the order of the Ld. CIT(E) may be set aside and the Ld. CIT(E) be directed to grant registration u/s 10(23C) of the Act. 4. On the other hand, the Ld. CIT-DR supported the order of lower authorities and submitted that there is no infirmity in the order of the Ld. CIT(E). At the time of granting registration, the Ld. CIT(E) is under statutory obligation to satisfy himself about the activity of the foundation. She contended that merely that there is some typographically error in the impugned order cannot be the reason for setting aside the order. She therefore, prayed that the impugned order may be sustained. 5. We have heard rival submissions and perused th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner proposes to cancel the registration of a Trust under sub- section (3) of section 12AA 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 situation would be different where the trust has before applying for registration found to have undertaken activities contrary to the objects of the Trust. We therefore find that the view of the Delhi High Court in the impugned judgment is correct and liable to be upheld." 7. Further, the Hon'ble Delhi High Court in the case of Foundation of Ophthalmic & Optometry Research Educational Centre (supra) held as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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