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2016 (2) TMI 563 - AT - Income TaxRegistration u/s 12A and approval u/s 80G denied - Held that:- Once the objects of the trust are found to be charitable, the CIT has no option but to grant registration. The issues such as violation of provisions of sec.13 and the exemption u/s 11 and 12 can be examined by the AO after the return of income is filed. It is only after the activities of the trust are commenced the genuineness of the objects can be examined during the course of assessment proceedings, after the grant of registration by the IT Authorities. Applying the above legal position to the facts of the present case, it is not the case of the ld.CIT(Exemptions) that the objects of the trust are not charitable in nature. The objects of the appellant-trust clearly fall within one of the limbs of charity i.e. education and the appellant-trust had complied with all the procedural requirements and filed the details as called for by the ld.CIT(Exemptions). The only grievance of the ld.CIT(Exemptions) appears to be that the son of the settler is constructing a building in the name of the entity in which he was interested as a shareholder or director and not in the name of the trust proposed to be used for the purpose of the appellant-trust. This, does not, in any way militate against the charitable character of the objects of the appellant-trust. It is not the case of the ld.CIT(Exemptions) that the funds of the appellant-trust were used for the construction of the building in the name of that entity. This, neither infringes the provisions of sec.13 nor can be examined at the stage of granting registration. The genuineness of the activities of the trust can be examined only after commencement of the activities of the appellant-trust. Thus we direct the ld.CIT(Exemptions) to grant registration u/s 12A of the IT Act. Following the same parity of reasoning give by us in the appeal filed against denial of registration u/s 12A, we direct the ld.CIT(Exemptions) to grant the approval u/s 80G. - Decided in favour of assessee.
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