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2018 (3) TMI 1860 - HC - Income TaxExemption u/s 11 - approval sought under Section 80G - application filed u/s 12AA was declined by the C.I.T. (E) inspite of granting sufficient opportunity, the assessee failed to produce details and documents in support of its claim for registration - I.T.A.T. while considering the objects (Annex.6) of the charitable Trust, held that as per Section 12A and 12AA what is intended thereby is only a registration simplicitor of the entity of a Trust, which is condition precedent for claiming of benefits under the other provisions of the Act regarding exemption of income, contribution etc. - HELD THAT:- No examination of the modus of the application of the funds of the Trust or an examination of the ethical background of its settlers is called for while considering an application for registration. The I.T.A.T. further held that stage for consideration of relevance of the object of the Trust and application of its fund arise at the time of assessment, when benefits are claimed by assessee in terms of Sections 11 and 12, the question as to the nature of such contribution and income can be looked into. At the time of registration of the Trust, going by the binding judgments of the Apex Court, what is to be looked into is whether the Trust is a genuine one and whether is a sham institution floated only to avail the benefits of exemption under the Act, therefore, the learned I.T.A.T. allowed the appeal filed by the respondent/assessee and passed order to grant registration under Section 12AA and 80G of the Act to the assessee with effect from filing of application. Relevant provisions of law and the object of the Trust reproduced in paragraph 8 of the order, we are of the opinion that no substantial question of law arises for consideration.
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