TMI Blog2013 (6) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... ting buildings on acquired land which is apparent from balance sheet dated 31.3.2009 which shows the value of work in progress at Rs.210.33 lakhs. Sub clause (a) & (b) of section 12AA makes it clear that the CIT has to satisfy himself about the genuineness of the activities of the trust and also about the objects of the trust. The scope of power of CIT is thus limited in this regard to make enquiries as he may deem fit & not required to look either into the nature of income of the assessee or its application if the object of the trust or institution falls within the definition of charitable purpose u/s 2(15). Also the assessee has submitted names and address of the persons along with their PAN numbers & addresses from whom unsecured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was Rs.2,11,96,000/-. Till date the society could not offer any explanation in justification of the same nor could it explain the sources of investment in purchase of the same. The Addl. CIT, Range Bulandshahr was also asked to enquire into the source of purchases as well as donations received by the trust and activities of the trust. The Addl. CIT vide his report stated that there was no change in the constitution and facts of the case as reported vide their letter dated 4.2.2009 by virtue of which assessee's application for registration u/s 12AA was rejected vide order dated 16.2.2009. Further opportunities were provided and further report was also called for from the Addl. CIT, Bulandshahr. The Addl. CIT Bulandshahr vide letter dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e gone through the material available on record. Under section 12A, before allowing registration CIT has to satisfy himself about the objects of the trust and genuineness of the activities of the trust and for this purpose, he is empowered to call for such documents or information from the trust as he may consider fit. In the present case, the objects of the trust are imparting of education which is included under the definition of charitable object u/s 2(15) of the Act and CIT has not made any adverse findings to that effect. The trust has also been issued letter of intent for establishment of new technical institution vide letter dated 30.3.2009 issued by Al India council for Education placed at page 43 of the paper book. The trust is als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust or the institution must be genuine which accordingly would mean that they are in consonance with the objects of the trust/institution and are not mere camouflage but are real, pure and sincere. The scope of power of CIT is thus limited in this regard to make enquiries as he may deem fit. In other words, at the time of considering the assessee's application u/s 12AA, the Commissioner should be satisfied about the charitable nature of the trust and genuineness of the activities of the trust and the Commissioner at that stage is not required to look either into the nature of income of the assessee or its application if the object of the trust or institution falls within the definition of charitable purpose u/s 2(15) of the Act. From the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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