TMI Blog2005 (12) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act, 1961. Sri H.N. Khincha, CA appeared for the appellant and Sri B. Arulappa argued the matter for the Department. 3. The assessee had filed an application for grant of registration under section 12A of the Income-tax Act, 1961 on 31-10-2002, seeking registration from 1-4-2001. There being a delay in filing the application, the appellant had also asked for condonation of delay which was also rejected by the Director of Income-tax under the impugned order dated 25-4-2003. 4. It transpired that in the course of hearing for grant of registration under section 12A of the Income-tax Act, 1961 the Director of Income-tax had called for various details like note on activities; date of commencement of activities; details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out that all the objects were charitable in nature. It was also pointed out that the trust has complied will all the conditions required for getting registration under section 12A of the Act, and that it ought to have been granted registration. 6. Referring to relevant provisions of the Act, the assessee s representative submitted that the Director of Income-tax (Exemptions) had travelled beyond his power while considering the application under section 12A of the Act. He contended that under section 12A read with section 12AA, the Director of Income-tax (Exemptions) was required to only consider that: ( a )An application for registration is filed in the prescribed from and in the prescribed manner. ( b )The objects of trust are ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration under section 12AA of the Act. At this juncture, a reference to the provisions relating to registration would be useful. Sections 12A and 12AA, at the relevant point of time read as under : "12A. The provisions of sections 11 and 12 shall not apply in relation to income of any trust or institution unless the following conditions are fulfilled, namely : ( a )the person in receipt of income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the assessment day of July 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution (whichever is later and such trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opy of such order shall be sent to the applicant : Provided that no order under sub-clause ( ii ) shall be passed unless the applicant has been given a reasonable opportunity of being heard." 10. From the above, it is clear that what is required to be seen while considering the application under section 12A of the Act, is that the applicant is formed by a valid document that its objects are charitable/religious in nature and are genuine in nature. The Director of Income-tax (Exemptions) has agreed and accepted in the order passed by him that there was a valid application filed and that the trust is supported by a valid Trust Deed. The trust is also imparting education through the college run by it, as per the details furnished about ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nership . This is what is ordinarily understood by genuine firm. It should not be sham or bogus. It is never the case of the Director of Income-tax (Exemptions) that the assessee-trust is sham or bogus or that no trust is in existence at all. The fact that the trust has received donations or that Trustees have contributed money or say that TDS is not properly deducted at all, do not affect any of the conditions required to be satisfied for section 12A registration. 13. The learned counsel for assessee has filed the details of the subjects taught in the colleges year after year. He has also filed details of the fees collected from students for each and every course with the names of the students, salaries paid to the whole of the staff m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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