TMI Blog2006 (1) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, the facts relevant for the disposal of this appeal are that the assessee-trust was created on 22-11-2001. Shri Chetan Dass on behalf of the trust filed an application under section 12A( a ) of the Act in Form No. 10A in accordance with rule 17A of the Income-tax Rules in the month of July 2001. The assessee has enclosed a copy of the trust deed, which was duly certified and authenticated by the seal of the Sub-Registrar along with a copy of Annexure-A. Along with this application the assessee-trust filed its Statement of Affairs, Balance Sheet and Income Expenditure Statement Account for the year ending 31-3-2001. In Annexure-A, the organizational set-up, powers and duties of office bearers were defined. 3. The Commissioner declin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at extent, the conditions laid down in rule 17A have not been satisfied and hence the application for registration of trust under section 12A( a ) of Income-tax Act was incomplete because the audited statements do not reflect the correct state of financial affairs of the trust. 4. Before us, firstly, the learned authorized representative for the assessee, produced the original trust deed, accompanied by Annexure-A to show that the observations of the Commissioner of Income-tax that Annexure-A was not registered and authenticated by the Sub-Registrar was incorrect, because this document is in fact properly authenticated and registered by the Sub-Registrar. We have also shown this document to the learned Departmental Representative for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and effect of the newly inserted section 12AA, as well as the amended section 12A (with effect from 1-4-1997), by the Finance (No. 2) Act, 1996, have been elaborated in the following portion of the Departmental Circular No. 762 dated 18th February, 1998 as follows : "19.1 Registration of charitable and religious trusts. - Under the existing provision of the Income-tax Act, exemption from income-tax in respect of the income of a charitable or religious trust or institution is available only if the conditions specified in that section are satisfied. One of these conditions is that the person in receipt of the income shall make an application for registration of the trust or institution in the prescribed form and in the prescribed manner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner has been empowered, on receipt of an application for registration of a trust or institution made under section 12A( a ) to - call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution. Further, such authority has also been empowered to make such inquiries, as he may deem necessary in this behalf. As per clause ( b ) of section 12AA(1), after the authority concerned is satisfied about the objects of the trust or institution and the genuineness of its activities, he shall pass an order in writing granting registration to the trust or institution. However, if such authority is not so satisfied, he shall pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee along with the documents whether the application is made in accordance with the requirements of section 12AA, read with rule 17A, of Income-tax Rules and whether the Form No. 10A has been properly filed by the assessee or not. In the instant case, the Commissioner has not pointed out any defect in the order to indicate that the requirements of section 12AA, read with rule 17A, and the require-ment of proper filing of Form No. 10A has not been met by the assessee. It is also important to mention here that while granting or refusing the registration to the trust the Commissioner was required to examine whether the objects of the trust were for charitable purposes or a charitable institution or whether the activities of the trust or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts filed before the CIT, (copy of which has also been placed on record at Paper Book - Pages 1-33 i.e., copy of audit report for assessment year 2001-02. Income and Expenditure Account and Statement of Affairs as on 31-3-2001 and copy of Income Expenditure Account and Balance Sheet as on 21-11-2000, as well as, Income Expenditure Account for the period from 22-11-2000 to 31-3-2001, copy of the Capital Account, copy of Trust Deed along with Annexure-A and copy of Will) were such documents which were sufficient enough to satisfy the Commissioner of Income-tax regarding the objects and genuineness of the activities of the assessee-trust for religious and charitable purposes but failure on the part of Commissioner of Income-tax in examin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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