TMI Blog2008 (8) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... ld DR. The registration cannot be denied to the assessee for the reason that it is not carrying on charitable activities. Religious activities are also construed to be charitable activities as per the decision in the case of CIT vs. Radhaswami Satsang [ 1992 (9) TMI 71 - ALLAHABAD HIGH COURT] and the decision of the Hon'ble Supreme Court in the case of Hazarat Pirmahomed Shah Saheb Roza Committee vs. CIT[ 1966 (10) TMI 43 - SUPREME COURT] . The observations of CIT that trust deed does not specify the fate of assets and liabilities in case of dissolution of trust, it is observed that cl. 78 of the trust deed specifies that in case of dissolution of trust everything related to trust shall be handed over to the justful national Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case and in the law, the learned CIT has grossly failed to appreciate the settled legal position that the scope of enquiry at the time of granting registration to any trust is to be confirmed to ascertaining that the objectives of trust are charitable in nature." 2. Vide above-mentioned order dt.29th May, 2007, the application of assessee for grant of registration under s. 12A was rejected by the CIT. It is mentioned in the order that the assessee trust was required to furnish, inter alia, notes on activities along with quantum of expenditure incurred on different charitable activities and assessee was also required to substantiate that in case of dissolution of trust how the assets and liabilities of the trust shall be dealt wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g such contention, he referred to the decision of Delhi Bench of Tribunal in the case of Sardari Lal Oberai Memorial Charitable Trust vs. ITO (2007) 106 TTJ (Del) 468 : (2005) 3 SOT 229 (Del), copy of which is filed at pp. 13 to 19 of the paper book, wherein it has been held that s. 12AA takes care of situation where activities have been carried out by a trust, whereas it does not lay down anything negative in cases where no activities have been carried out. In such case, the sole criteria of grant/non-grant of registration to the trust would be for the CIT to see' the objects of the trust. If the objects of the trust are charitable, just because no activity has been carried out by the trust, this does not entitle the CIT to hold that the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Pirmahomed Shah Saheb Roza Committee vs. CIT (1967) 63 ITR (SC) 490 5. With respect to the observations of the CIT regarding registration of supplementary trust deed, learned Authorised Representative drew our attention towards copy of supplementary trust deed placed at pp. 8 to 11 of the paper book wherein he has shown us that said supplementary trust deed was registered with the Sub-Registrar, Sadar, Hardwar vide his order dt.24th May, 2007. Thus, it was pleaded by the learned Authorised Representative that the CIT was wrong that the said supplementary trust deed was not registered. 6. Regarding the observation of the CIT that trust deed does not specify how the assets and liabilities are dealt with in case of dissolution of trust, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad High Court in the case of CIT vs. Radhaswami Satsang and the decision of the Hon'ble Supreme Court in the case of Hazarat Pirmahomed Shah Saheb Roza Committee vs. CIT. The observations of CIT that trust deed does not specify the fate of assets and liabilities in case of dissolution of trust, it is observed that cl. 78 of the trust deed specifies that in case of dissolution of trust everything related to trust shall be handed over to the justful national Government. Thus, this observation of the CIT is contrary to the facts found on record. 10. The law is now well-settled that while granting the registration to the charitable institution or trust, if it is at the commencement stage, the powers of CIT, with whom the application is filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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