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2016 (2) TMI 746 - AT - Income TaxGrant of registration u/s 12A and recognition u/s 80G denied - CIT(E) denied the registration only on the ground that the appellant-trust had not furnished the clarification as to receipt of rental income for conducting tuitions and the appellant-trust was not serious in prosecuting the applications - Held that:- The contentions of the ld.CIT(E) are not tenable in the facts of the present case as the appellant-trust had duly complied with all the letters issued by him and therefore, the ld.CIT(E) should not have held that the appellant-trust was not serious in prosecuting the applications. The receipt of rental income by the appellant-trust can be examined only during the course of assessment proceedings by the Assessing Officer after grant of registration. It was so held by the Hon’ble jurisdictional High Court in the cases of Sri Gururaja Seva Samithi [2015 (7) TMI 954 - KARNATAKA HIGH COURT ]. The Hon’ble jurisdictional High Court in this case had clearly held that the question of verifying the activities of the trust can be considered only after it is registered and carries on activities subsequently. Thus genuineness of the activities of the trust and nature of receipt of any sum of money cannot be gone into at the time of registration of the trust. It is only after the activities of the trust are commenced, the genuineness of the objects can be examined during the course of assessment proceedings, after the grant of registration by the IT Authorities. Respectfully following the ratio laid down in the cases cited supra, we direct the ld.CIT(E) to grant registration u/s 12A of the IT Act. Thus, the appeal filed by the trust is allowed. Also we direct the ld.CIT(E) to grant approval u/s 80G of the IT Act. - Decided in favour of assessee
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