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TMI Blog2013 (2) TMI 605X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under section 12AA on 27.3.2012. The Commissioner of Income Tax vide letter dated 28.3.2012 requested the assessee to furnish further details. As per the A.R. the details as sought were already furnished. However, vide letter dated 14.9.2012 the assessee gave further details with regard to school, number of students, teaching staff, non-teaching staff, bank account of the trust, etc. The A.R. appearing on behalf of the assessee submitted that at the time of registration the assessee had even provided account statement for the period from the date of creation of trust upto September, 2012. The school had started in June, 2012. Despite the fact that all the documents as required by the Commissioner were submitted, the CIT vide impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Foundation of Ophthalmic & Optometry Research Education Centre [2010]. The learned AR has also referred to the judgement of Hon'ble Madras High Court in Tax Case Appeal No.337& 338/2011 decided on 13.12.2011 in the case titled DIT (Exemptions) v. JITO Chennai Chapterr [2012] wherein the Hon'ble High Court has observed as under:- "4. A reference to Section 12AA of the Act would show that at the initial stage, there is an obligation on the part of the authority to find out and give his opinion about the genuineness of the activity of the society/trust. Inasmuch as the order of the Director of Income Tax (Exemptions) has not spoken anything about the genuineness of the Society, the rejection of the application, in our view, is not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chnical institutes, polytechnics, hostels and other educational institutions. (b) To provide for education, food, clothing and shelter to poor students irrespective of caste, creed, gender and community. (c) To establish, administer, run, takeover computer coaching centres, nursery/primary/secondary schools, colleges, polytechnic, teachers' training institutes, industrial training institutes, catering institutes, nursing colleges etc. (d) To build or to assist in building schools, colleges, hospitals or other buildings in connection with or for the advancement of the objects of the trust and to maintain, alter and improve the same including existing buildings and to furnish and equip the same. (e) To do such ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 11 or alternatively under section 10(23C) of the Act. However, it was seen that a number of entities who were engaged in commercial activities were also claiming exemption on the ground that such activities were for the advancement of objects of general public utility in terms of the fourth limb of the definition of 'charitable purpose'. Therefore, section 2(15) was amended vide Finance Act, 2008 by adding a proviso which states that the 'advancement of any other object of general public utility' shall not be a charitable purpose if it involves the carrying on of - (a) any activity in the nature of trade, commerce or business; or (b) any activity of rendering any service in relation to any trade, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of this nature where the trust has approached the authority for registration under s. 12A within a span of eight months of its formation, the above-mentioned criteria namely, the objects of the trust for which it was formed will have to be examined to be satisfied about its genuineness and activities of the trust cannot be the criterion, since it is yet to commence its activities." 9. The Hon'ble Delhi High Court in Foundation of Ophthalmic & Optometry Research Education Centre (supra) has held as under:- "10. Facially, the above provision would suggest that there are no restrictions" of the kind which the Revenue is reading into in this case. In other words, the statute does not prohibit or enjoin the CIT from registering trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be relevant to mention here that the trust was formed on 11.1.2012, the application for registration under section 12AA was submitted by the appellant on 27.3.2012 i.e. within a period of three months of its creation. The school activities started in June, 2012, the appellant submitted its books of accounts upto September, 2012 before CIT. The CIT after examining the statement of accounts for such a short period, formed its opinion that the activities of trust are not charitable in nature. The CIT has not raised any objection on the objects of the trust. In our considered opinion, it was premature for CIT to judge the activities of the Trust by just glancing through the statement of accounts of the trust of such a short period. 11. We, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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