TMI Blog2014 (1) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... tration could not have been refused on the ground that the trust has not yet commenced the charitable or religious activities - The genuineness of the objects have to be tested and not the activities which have not commenced - The reasons given by the ld. CIT in the impugned order for rejection of applications are thus not relevant at this stage which may be a separate issue and arise whenever the return of income would be filed by the assessee and would be examined at assessment stage - The issue has been restored for fresh adjudication. - ITA No. 326/Agra/2013, ITA No. 327/Agra/2013 - - - Dated:- 29-10-2013 - Shri Bhavnesh Saini And Shri Pramod Kumar,JJ. For the Appellants : Shri M. M. Agarwal, C.A. For the Respondent : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the assessee has failed to prove genuineness of the activities of the assessee society. The application for registration was accordingly rejected. 3. The ld. counsel for the assessee submitted that the issue of donation is not relevant to the matter in issue at the stage of registration and relied upon the decision of the Hon'ble Allahabad High Court in the case of Hardayal Charitable Educational Trust vs. CIT reported in 214 Taxman 655 as well as the order of ITAT, Agra Bench in the case of Babu Ram Education Society vs. CIT Aligarh in ITA Nos. 78 79/Agra/2013 dated 26.07.2013, copy of which is filed at page 154 of the paper book. On the other hand, the ld. DR relied upon the impugned order. 4. We have considered the rival ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , shall stand transferred on that day to the Commissioner and the Commissioner may proceed with such applications under that sub-section from the stage at which they were on that day. (2) Every order granting or refusing registration under clause (b) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) of sub-section (1) of section 12A. (3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996) and subsequently the Commissioner is satisfied that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this stage only the genuineness of the objects has to be tasted and not the activities, which have not commenced. The enquiry of the Commissioner of Income Tax at such preliminary stage should be restricted to genuineness of the objects and not the activities unless such activities have commenced. The Trust or society cannot claim exemption, unless it is registered under Section 12AA of the Act and thus at that such initial stage the test of the genuineness of the activity cannot be a ground on which the registration may be refused. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT in the impugned order are not relevant for the purpose of grant of registration u/s. 12AA of the IT Act and approval of exemption u/s. 80G(5) of the IT Act. Hon'ble Allahabad High Court in this case held that for grant of registration u/s. 12AA, The Commissioner of Income Tax is not required to look into the activities where such activities have not or in the process of its initiation. The objects of the Institution shall have to be seen. The issue of receipt of donations is not relevant. The registration could not have been refused on the ground that the trust has not yet commenced the charitable or religious activities. The assessee has filed copy of the aims and objects of the society, which shows that the assessee exists for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch institution and received donations. At this stage as per judgment of Hon'ble Allahabad High Court, the genuineness of the objects have to be tested and not the activities which have not commenced. The reasons given by the ld. CIT in the impugned order for rejection of applications are thus not relevant at this stage which may be a separate issue and arise whenever the return of income would be filed by the assessee and would be examined at assessment stage. Considering the facts and circumstances and over all evidences, produced on record in the light of provisions of section 12AA of the IT Act, we are of the view that the assessee society is entitled for registration u/s. 12AA of the IT Act and approval u/s. 80G(5) of the IT Act. We ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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