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2015 (12) TMI 887 - AT - Income TaxRegistration u/s 12A denied - Held that:- Undisputedly, the assessee was created by registered trust deed dated 5.10.2012 and it applied for registration on 25.4.2013. Therefore, it is not unusual that it could not commence any activities within such a short period. Further, admittedly when it has not received any funds nor commenced its activities, there is no need to maintain books of accounts. In the aforesaid circumstances, it cannot be held that as the assessee has not maintained books of accounts or commenced its activities, the activities are not genuine, hence, registration cannot be granted u/s 12A of the Act. So far as objects of the assessee as mentioned in the trust deed are concerned, a perusal of the same would clearly show that they come within the meaning of ‘charitable purpose' as defined u/s 2(15) of the Act. It is well settled principle of law that at the time of grant of registration, the CIT is only required to look into the object of the trust and genuineness of its activities. So far as the object of the trust is concerned, there is no adverse comment by the CIT that they are not charitable in nature. That being the case, only because it has not commenced its activities within such a short period of time, there is no justification in rejecting the application for grant of registration u/s 12A of the Act. Commencement of activity cannot be the sole criteria for not granting registration u/s 12A of the Act. We direct the CIT to grant registration to the assessee u/s 12A of the Act. - Decided in favour of assessee
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