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2021 (11) TMI 632 - AT - Income TaxExemption u/s 11 - rejecting the application u/s 12 A - whether appellant society doing charitable activities and fulfill the conditions laid down u/s 2 (15) of the act? - construction has been started of the Satsang Bhavan with corpus donations - assessee submitted that it does not own any land and building but has building under construction - HELD THAT:- Before the learned Commissioner assessee also produced the bank statement of the assessee with Oriental Bank of commerce from 8 May 2013 to 31/3/2017. It further provided the register of outdoor patients before him. From the above activities it is apparent that assessee is carrying on charitable activities as envisaged u/s 2 (15) of the act. Coming to the objections of the learned CIT – E we find that assessee has given a detailed explanation with respect to the land and building which is owned by the trustee and on which satsang Bhavan is constructed. Further the contractor’s account was also produced which shows that the initially some amount was given for the construction activity however the contractor returned the sum and later on the trust carried on the construction activities by looking at alternatives. The amount was received from the contractor through account payee cheques and same were also given earlier to him through account payee cheques. Therefore we do not find any merit in the finding of the learned CIT –E that the transaction with Mr Surinder Sukhija prevents assessee from getting registration u/s 12 AA The justification given by the assessee for holding the car and using it for the activities of the trust is also justifies the use of claiming of the depreciation as well as payment of insurance. In fact the level of activities being carried out by the trust justifies the use of car. Further the learned CIT E held that the credits in bank account as well as the receipt as per receipt and payment account for financial year 2016 – 17 does not match, however, there is no difference between the receipts which are required to be shown in the receipt and payment account. Assessee has also shown the bank account to the learned CIT – E, who could not find out or give any instances where the receipts are not accounted in the receipt and payment account but are credited in the bank account. The carrying on of the activities of satsang along with Jan Sewa Samiti has also been properly explained by the assessee that it carries on these activities along with these other organizations. Further the government of Haryana has give grant to the assessee trust for carrying on its medical activities for purchasing an ambulance. Appellant trust is also showing considerable amount of fees from the patient’s and also applies substantial amount for medical relief , relief to poverty, gaushala and religious activities. All these activities falls under the gamut of provisions of Section 2 (15) of the act. The learned CIT E without any evidence and on irrelevant considerations has denied the registration to the trust u/s 12 AA. Object of Section 12AA of the Act, is to examine the genuineness of the objects of the Trust, but not the income of the Trust whether applied for charitable or religious purposes. Off course trust needs to show that the activities are genuine I and in accordance with the objects. This is demonstrated by the applicant appellant exhaustively . The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Therefore, we find present case arising out of the question of registration of the Trust and not of assessment. All these factual aspects can also be verified during the course of assessment proceedings when the assessee claims benefit of Section 11 – 13 of the income tax act after registration. In view of the above facts, we direct the learned CIT –E to grant registration to the assessee u/s 12 AA of the act, as it is carrying on charitable activities as envisaged u/s 2 (15) of the act and none of the activities carried out by the assessee are not genuine, in fact they are in accordance with the trust deed and in consonance with the provisions of The Income Tax Act. - Decided in favour of assessee.
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