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TMI Blog2013 (6) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... trust which would hold properties and will use the same for establishment of engineering, technical, management, hotel management, medical colleges etc. The trust deed is executed on 28.8.2008. The main objects of the trust are as per clause (a) to (n) as enumerated in the trust deed. The trust applied for registration which was originally rejected by order dated 16.2.2009. Further an application was made on 20.5.2009. The CIT rejected the application by holding as under:- "It was further stated that the trust has purchased seven properties costing in aggregating Rs.1,51,29,000/-. The value according to the circle rate was Rs.2,11,96,000/-. Till date the society could not offer any explanation in justification of the same nor could it expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age." It is against the aforesaid order that the assessee has come up in appeal. 3. At the outset, the Ld AR read out from the order of CIT and read written synopsis and relied upon them and in view of written synopsis he forcefully argued that the registration u/s 12A should have been granted. 4. The Ld DR, on the other hand, submitted that the registration was not allowed because of the fact that source of persons from whom unsecured loans were obtained were not found to be genuine. Therefore, the Ld CIT has rightly rejected the registration. 5. We have heard the rival submissions of both the parties and have gone through the material available on record. Under section 12A, before allowing registration CIT has to satisfy himself about ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfy himself about the genuineness of the activities of the trust, he is empowered to make such enquiries as he may deem necessary in this behalf. In regard to verification of genuineness of the activities of the trust whose objects do not run contrary to public policy and are in fact related to charitable purposes, the CIT's again empowered to make enquiries as he thinks fit. In case the activities are not genuine and they are not being carried out in accordance with the objects of the trust/society, the registration again can be refused. The language used in the section only requires that activities of the trust or the institution must be genuine which accordingly would mean that they are in consonance with the objects of the trust/in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore advancing loan to the assessee, registration u/s 12AA of the Act cannot be denied. The Ld AR in the synopsis has relied on certain case laws on the proposition that assessee cannot be expected to explain the source of source in case of cash credits in their bank account:- 1. Hastimal v. CIT 49 ITR 273. 2. CIT v. Ram Narain Goel 224 ITR 180. 3. CIT v. Rohini Builders. 256 ITR 350. 6. The Ld AR has also relied upon the order of Tribunal dated 23.7.2010 in the case of Lakshayb Sewa Sansthan, Ghaziabad and order dated 30.6.2009 in the case of Sri Balaji Charitable Trust. Though the facts and circumstances of the case laws as decided by Hon'ble Tribunal are not similar to the facts & circumstances of the present case, yet the crux in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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