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2017 (12) TMI 1251 - AT - Income TaxGrant of registration u/s 12A - prescribed conditions for registration of the trust - assessee trust did not produce the books and vouchers in respect of expenses claimed by the society for verification of the activities of the trust - Held that:- We find merit in the submission of assessee that at the time of granting of registration the ld. CIT is required only to examine the objects of the trust and is not required to examine the books of account of the trust and it is only during the claim of exemption u/s 11 the Assessing Officer will examine the same and allow or disallow the same as the case may be. Also that since the assessee trust is imparting education by running various schools and colleges, therefore, it is doing charitable activities as according to him “education” per se is charitable activity. The various decisions relied on by the ld. counsel for the assessee in the Paper Book also supports the view that education per se is a charitable activity. Powers of the Commissioner while granting registration u/s 12A - Held that:- We find various courts have held that while granting registration u/s 12A the ld. CIT is required to see only the objects of the assessee trust/society and not to examine the application of income. He is not required to examine whether the income derived by the trust is being spent for charitable purposes or the trust is earning profit while granting registration. He is only required to examine the objects of the trust. See Bhartiya Kisan Sangh vs. CIT [2017 (8) TMI 1065 - ITAT DELHI] wherein held that at the stage of granting registration u/s 12A, the ld. CIT (Exemptions) is required to see the objects of the society and not required to examine on the application of income which will have to be undertaken by the Assessing Officer on a year to year basis after the assessee files return of income claiming exemption under section 11 - Decided in favour of assessee.
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