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2009 (7) TMI 180 - AT - Income TaxRegistration u/s. 12A refused - genuineness of the loans and the capacity of the donors for providing the loans not proved - CIT held that the assessee society was a closed organization held by family members and close relatives and was not charitable - Whether the CIT has rightly declined grant of registration to the assessee society? - HELD THAT:- The assessee did not make any payments attracting the provisions of s. 13(3). It did not incur any expenditure on establishment and on administration. Apropos the unsecured loans, the assessee provided confirmations from all the donees, along with details including their PANs. True, the management is by the members of the same family, but this does not act in any manner detrimental to the assessee who have registered the society. It also does not matter that some of the members are practising chartered accountants. In response to the questionnaire issued to the assessee, the assessee vide reply furnished all the requisite information. In Sanjeevamma Hanumanthe Gowda Charitable Trust [2006 (3) TMI 91 - KARNATAKA HIGH COURT] it has been held that the authorities have to satisfy genuineness of the activities of the trust or the institution and how the income derived from trust property is applied to charitable or religious purpose and the nature of the activities by which the income derived by the trust. In Medical Accident Prevention Society [2004 (9) TMI 79 - KERALA HIGH COURT] it has been held that the relevant consideration while considering the application under s. 12A of the Act is that the trust of the institution to be a charitable one having charitable purposes. In Fifth Generation Education Society [1990 (5) TMI 38 - ALLAHABAD HIGH COURT] it has been held that while considering the application under s. 12A of the Act, the CIT is not required to examine application of income of trust; he has to see only whether objects of trust are charitable or not, objects of general trust do not cease to be charitable, no activity need be carried on by society for obtaining registration. In the present case the objects of the assessee society are clearly charitable, being for the purpose of education, which is covered under the definition of "charitable purpose" within the meaning of s. 2(15). The observations made by the learned CIT while rejecting the assessee's application for registration, as discussed hereinabove, do not make the assessee any the less entitled for registration. In keeping with the Dream Land Educational Trust [2007 (4) TMI 661 - ITAT AMRITSAR] and other plethora of case law, the CIT was only required to satisfy himself about the objects of the trust and the genuineness of its activities, and no further. Assessee appeal allowed.
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