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2023 (8) TMI 455 - HC - Income TaxRejection of Grant of registration u/s 12(A)(a) - genuineness of the objects of assessee-Trust - assessee not filing the application for the same within one year from the prescribed date nor had taken permission under Rule 14 of the Madhya Pradesh Lok Nyas Adhiniyam, 1951 for selling the property - HELD THAT:- ITAT was right in holding that at the time of granting registration, the Commissioner is not required to examine whether income derived by Trust spend for charitable purposes or the Trust is earning profit. ITAT has rightly come to the conclusion that the genuineness of the objects of assessee-Trust could not be doubted and the same shall be seen at the time of assessment and not at the time of grant of registration. For this contention, appellant's counsel has placed reliance on the judgment of Division Bench in the case of Commissioner of Income Tax Vs. Divine Shiksha Samiti [2020 (2) TMI 726 - MADHYA PRADESH HIGH COURT]. Tribunal has rightly come to the conclusion that while considering the application for registration, CIT was supposed to enquire into the nature of the Trust and since there was nothing substantive or serious to doubt the nature of the Trust being charitable, the learned CIT was not justified in rejecting the application for registration on the aforesaid basis. Thus, no substantial question of law arises for consideration in this appeal.
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