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2011 (10) TMI 623 - AT - Income TaxNon granting registration u/s 12AA - Held that:- The legal position on the issue becomes crystallized that at the time of consideration of registration, it is not a sine qua non that the Trust must have started its activities. In case the Trust has started its activities, the ld. CIT can examine them as has been envisaged in the Act. This above conclusion is safeguarded by sub-clause(3) incorporated in section 12AA vide which if after granting registration it is found by the ld. CIT that the activities of the Trust are not carried out in furtherance of its charitable objects, he can cancel the registration granted to the Trust. So, when these provisions are read in conjunction, and a harmonious interpretation is given to them, we find that the view taken by the Co-ordinate Benches in numerous successive cases, some of which we have mentioned herein above, is very logical, and the same we are bound to follow. Accordingly, we cannot sustain the order of ld. DIT(E) in refusing to grant registration and consequent refusal to grant approval u/s 80G of the Act. No fruitful purpose will be served by restoring the issue to the file of ld. DIT(E). Consequently, we set aside the finding of the DIT(E) and direct him to grant registration u/s 12AA and also to grant approval u/s 80G to the assessee-Trust.
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