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TMI Blog2025 (4) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, ITAT is correct in directing to CIT(E) to grant registration u/s 12AA of the Act irrespective of the findings by the CIT(E) that the activities of the trust is in the nature of trade, commerce or business and covered by proviso to Section 2 (15) of the Act." 2. The assessee / respondent herein has applied for registration under Section 12AA of the Act in form No.10A which was received by the CIT (AE), Bhopal on 11.11.2013. Upon due consideration, on 30.05.2014 the Commissioner of Income Tax, Raipur rejected the application for grant of approval under Section 12AA of the Act. Feeling aggrieved against the order of Commissioner of Income Tax, the assessee preferred an appeal before the Income Tax Appellate Tribunal, Raipur Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n receipt of an application for registration of a trust or institution made under clause (a) or clause (aa) or clause (ab) of sub-section (1) of section 12A, shall- (a) xxxxxxxxx (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) xxxxxxxxx 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 insti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne. If there have been no activities undertaken by the trust then the Commissioner cannot assess whether such activities are genuine and therefore, the Commissioner is bound to refuse the registration of such a trust. 11. We have given our anxious consideration to the above submissions made by Ms Aishwarya Bhati, the learned Senior Counsel appearing for the appellant Director of Income Tax and find that it is not possible to agree with the same. The purpose of Section 12-AA of the Act is to enable registration only of such trust or institution whose objects and activities are genuine. In other words, the Commissioner is bound to satisfy himself that the objects of the trust are genuine and that its activities are in furtherance of the obj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned ASG that the very purpose for any assessee to seek registration under Section 12AA of the Act is to claim exemption under Sections 10 and 11 respectively of the Act, as the case may be. Therefore, before seeking registration, it is essential that the Trust should adduce cogent material to the satisfaction of the Commissioner that the activities are genuinely charitable in nature. 15. To the aforesaid extent there is no problem. We may only say that mere registration under Section 12-AA automatically does not entitle any charitable trust to claim exemption under Section 10 and 11 respectively of the Act, 1961. When a return is filed by any trust claiming exemption it is for the assessing officer to look into all the materials and satis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the BCCI are in the form of exhibition of sports and earn profit out of it. However, if the Associations host any international match once in a year or two at the behest of the BCCI, then the income of the Associations from the sale of tickets etc. in such circumstances, would not portray the character of commercial nature. (iv) The State Cricket Associations and the BCCI are distinct taxable units and must be treated as such. It would not be correct to say that a member body can be held liable for taxation on account of the activities of the apex body. (v) Irrespective of the nature of the activities of the BCCI (commercial or charitable), what is pertinent for the purpose of determining the nature of the activities of the assessees ..... X X X X Extracts X X X X X X X X Extracts X X X X
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