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TMI Blog2014 (2) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner had not recommended the registration to the assessee under Section 12AA of the Act. 3. Learned CIT-II, Amritsar, fixed the case of the assessee-trust for 12.09.2013, giving an opportunity to the applicant-trust to represent the case. The authorized representative of the assessee appeared before learned CIT-II, Amritsar, and the case of the assessee-trust was discussed in detail with the authorized representative of the assessee. Learned CIT- II, Amritsar, after perusing the documentary evidence filed by the assessee as well as the report of the Deputy Commissioner of Income Tax, Circle-V, Amritsar, and comments of the Range head, concluded that assessee-trust has been constituted by four members who are close relatives. Learned CIT-II, Amritsar, was also of the view that the assessee-trust came into existence on 25.12.2012 but it had done a very little activities by spending a sum or Rs. 2530/- for providing bandages/ dettol to some Leprosy Ashram and it had distributed some notebooks worth Rs. 2000/- in some school upto 31.03.2013. Similarly, it has shown payments of Rs. 2100/- each to two schools during the financial year 2013-14. Learned CIT-II, Amritsar, was also of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the impugned order passed by learned CIT-II, Amritsar, is against the law and facts and against the evidence produced by the assessee and the same deserves to be cancelled. 5. Learned DR controverted the argument advanced by learned counsel for the assessee and stated that learned CIT-II, Amritsar, has passed a well reasoned order on the basis of documentary evidence filed by the assessee as well as the report of the Assessing Officer which are itself speaking one and he relied upon the impugned order. 6. We have heard both the parties and perused the relevant records available with us, especially the order passed by learned CIT-II, Amritsar, along with the documentary evidence filed by the assessee in the shape of paper book containing pages from 1 to 41, in which he has attached copy of trust deed and copy of orders of some Hon'ble High Courts along with some bills of expenditure. 7. We have thoroughly examined all the documentary evidence filed by the assessee along with the provision of section 12AA of the Act, especially the copy of trust deed of the assessee-trust filed before us. For the sake of convenience, the relevant portion of the trust deed is reproduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The Trust hereby created shall be styled as M/s G.D. Kavita Singla Charitable Trust. 4. The Trustees shall hold and stand possessed of the said Trust Funds upon, the Trust to receive the interest, dividends, rents profits and other income thereof and thereon and to apply the same after meeting the expenses/out goings, of the Trust subject to these presents as mentioned hereinafter in this Deed. The Trustees may at their discretion apply the whole or any part or parts of the corpus of the Trust Fund for the objects of the Trust. MAIN OBJECTS: i. The objects of the Trust is to uplift the poor section of Indians. ii. To contribute for the marriage of Indian poor girls or re- marriage of widows (or contribution to the mass-marriages of the Indian poor girls of all sections of society). iii. To provide dry ration to the poor section of the society especially the womenhood. iv. To provide for any other Charitable purpose or for feeding of poor, blind, deaf, dumb, orphans, widows as the Trustees shall in their absolute discretion think fit from time to time. v. To provide any medical relief by opening hospitals, nursing homes, dispensaries of giving donations to such institutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. (1A) All applications, pending before the Chief Commissioner on which no order has been passed under clause (b) of sub-section (1) before the 1st day of June, 1999, 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) and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution: Provided: that no order under this sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In all the case-laws relied upon by learned counsel for the assessee, he has not cited any case law where the trust has been constituted by a family members for the benefit of one family and the registration under Section 12AA has been granted by any authority. Therefore, the case laws relied upon by learned counsel for the assessee is not helpful to the assessee. 12. Keeping in view the aforesaid discussion, we are of the view that merely writing some aims and objects charitable in nature in the trust deed, as mentioned in the trust deed reproduced above, does not mean that the activities of the trust or institution are charitable in nature and are genuine. There should be some practical activities which satisfy the authority concerned before granting the registration under Section 12AA of the Act. In the present case, the assessee has not done anything nor produced any evidence satisfying learned CIT-II, Amritsar, about the genuineness of the activities of the trust or institution for grant of registration under Section 12AA of the Act where the trust has been constituted by a family member like the assessee-trust on hand. In our considered view, the assessee trust is not entit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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