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2017 (7) TMI 769 - AT - Income TaxRejecting the application for the grant of the registration U/s 12AA - Held that:- From the trust deed placed before us, clause 5 clearly indicates that assessee is going to establish and grant educational institutions in India and/or contribute to such existing institutions. It is also observed that Ld. CIT has not made any inference about objects of trust being noncharitable in nature. The balance sheet as on 31.03.2013 reproduced in the impugned order shows that the assessee has invested a substantial sum towards purchase of land for setting up of a school and also has received corpus donations. In our considered opinion, the power of Ld. CIT under section 12AA of the Act, while considering the application for registration of trusts is limited to the extent of satisfying himself about the objects of trust, being charitable in nature. At this stage of granting registration under section 12AA of the Act, he has to satisfy himself about the objects of the institution and genuineness of the activities. He is not required to look into the utilisation of funds, commercial nature of activity etc., at that stage. Thus we direct Ld. CIT to grant registration under section 12AA of the Act to the assessee. - Decided in favour of assessee.
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