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2017 (6) TMI 580 - AT - Income TaxDenial of request for registration of the Trust u/s 12A - assessee had not incurred any expenditure on the objects of the Trust - invoking the provisions of Sec.13(1)(b) - Held that:- Sec.12AA(1) requires the Commissioner to whom an application is made for the registration of a Trust or Institution to satisfy himself about the genuineness of the activities of the Trust or the Institution as well as the objects of the Trust or Institution and for that purpose Commissioner is vested with power to call for documents or information and is also empowered to make such inquiries as he may deem necessary in that behalf. Commissioner is thereupon empowered to pass an order in writing either registering an Institution or if he is not satisfied about the objects of the Trust or Institution and of the genuineness of its activities, to pass an order in writing refusing to register the Trust or Institution. Thus it can be seen that at the time of grant of registration, the Commissioner is not empowered to examine the application of income. The stage for consideration of the relevance of the object of the Trust and the application of its funds arises at the time of assessment. See Shri Anjaneya Medical Trust Vs. CIT [2016 (3) TMI 30 - KERALA HIGH COURT ] In order to ascertain the true nature and purpose of the Trust, the objectives are to be considered as a whole and not in isolation. In the present case, since the assessee Trust has been created in the year 1916, i.e., before the commencement of the Income-Tax Act, 1961, we are of the view that the provisions of Sec.13 of the Act are not applicable. The rejection of approval for registration u/s 12A was not warranted in present case - Decided in favour of assessee.
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