TMI Blog2014 (3) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... - Income and expenditure – Held that:- The adverse inference nothing to reflect on this aspect – with regard to, time to raise the funds and donations it is the discretion of the society that can be undertaken in due course, may be the issue of 80G registration which is consequent to 12A registration may be important – Thus, mere non-carrying on of the vigorous activities of trust at the time of registration per se cannot be detrimental for registration of the trust u/s 12A when the objects are charitable and there is no adverse comment about them – Relying upon Director of Income-tax Vs. Foundation of Ophthalmic and Optometry Research Education Centre [2012 (8) TMI 777 - DELHI HIGH COURT] - the assessee is eligible for grant of registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(E)'s letter dated 11-11-2010 the assessee filed the necessary annual balance- sheet, income and expenditure account, other compliances and contended that the society was formed with aims and objectives which are charitable in nature. It being the first year of society by the time of filing application for registration there were no substantial activities. DIT(E), however, without asking any further question rejected the application by following observations: 2. On perusal of the details it is seen that as per rules and regulations of the society Life members General members are required to pay Rs. 1000/- 500/- respectively as admission fee which has not been paid to the society. When such rule is not complied with then the soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 12AA is also not satisfied. 4. Since the applicant has not done any charitable activity, the genuineness of the activities could not be established. Therefore, one of the conditions for granting registration u/s 12AA is also not satisfied. Accordingly, the application filed by the applicant for grant of registration u/s 12AA is hereby rejected. 2.1. Aggrieved, assessee is before us. 3. Ld. Counsel for the assessee contends that the DIT(E) has no where disputed, the fact that the objects of the society are charitable in nature. Application has been rejected mainly by the following observations: (i) The society has not been able to raise funds which shows that intention to carry out charitable activity is not genuine. (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), holding that such approval is not required to be sought each year. This is an one time approval. At page no. 16 of the judgment it has been held that the Commissioner is required to examine the objective of establishing an educational institute or university and the fact that it intends to achieve such objectives. So long as the objective on forming is not in doubt, the exemption cannot be denied on the ground that no substantial activities have been undertaken immediately on the incorporation of the Society. (ii) Hon'ble Delhi High Court in the case of Director of Income-tax Vs. Foundation of Ophthalmic and Optometry Research Education Centre (2013) 355 ITR 361 holding as under: Held, dismissing the appeal, that under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2. Further reliance is placed on Hon'ble Karnataka High Court decision in the case of DIT(E) Vs. Meenakshi Amma Endowment Trust (2013) 354 ITR 219 that the trust cannot be denied registration at the threshold on account of the fact that no charitable activity has commenced. 3.3. Thus a catena of judgments support the view of the assessee. It is pleaded that the order of ld. DIT(E) may be reversed and the registration may be directed to be granted. 4. Ld. DR on the other hand contends that the ld. DIT(E) while refusing registration held that - (i) life members and general members ha not contributed the respective contribution. (ii) Income and expenditure account shows income of Rs. 3/- and expenditure of Rs. 13,927/- wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to promote the objects of the trust, the fact which is not denied by DIT(E) or the ld. DR. Therefore, the adverse inference nothing to reflect on this aspect. Apropos time to raise the funds and donations it is the discretion of the society that can be undertaken in due course, may be the issue of 80G registration which is consequent to 12A registration may be important. Thus mere non-carrying on of the vigorous activities of trust at the time of registration per se cannot be detrimental for registration of the trust u/s 12A when the objects are charitable and there is no adverse comment about them. In view thereof we find merit in the argument of ld. Counsel and the case laws cited by him and relying on the ratio of decisions in the cases ..... X X X X Extracts X X X X X X X X Extracts X X X X
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