9911796707
TMI Blog2015 (2) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... nal, the order of the Commissioner of Income-tax and the arguments of the officer present on behalf of the Revenue are that a public charitable trust came to be formed on April 22, 2010, namely, Vijay Vargiya Vani Charitable Trust with a view to carry on charitable activities. An application in Form No. 10A for seeking registration under section 12AA of the Act was moved to the Commissioner concerned on March 16, 2011. The Commissioner sought certain clarifications from the assessee-trust about activities being carried out till date, copy of income and expenditure account for the financial year 2010-11 and also as to show how clause 7(d) and (f) are charitable in nature in the trust deed. The Commissioner also found that the assessee-trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -trust but no evidence was led as to any amount having been incurred towards the charitable activities and once there was no expenditure towards charitable activities bona fide of the trust could not have been established and, therefore, the Commissioner has rightly rejected the application. He further contended that the two clauses, namely, (i) to purchase, acquire apply for land, building, premises or construct the building, and (ii) to publish newspaper, journal, magazine either daily fortnightly or monthly basis are not at all related to charity and even if one of the clauses is derogatory or not related with charitable activities, the Commissioner in his own discretion had right to reject the application, which he did and the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es already undertaken by it. If the clauses/objects of the trust are charitable in nature then in so far as grant of registration is concerned, it needs to be granted but if at all the Commissioner subsequently notices that the trust/society/institution, as the case may be, have not come up to expectation and do not render services for which it was created, i.e., of charitable work then, in our view, the Commissioner has power to cancel the registration so granted. However, if at the threshold of creation of a trust/moving of an application under section 12AA if one is required to prove charitable activities already undertaken by it, may not be proper. The very purpose of creation of a trust/society is by and large to seek registration, col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institutions. The very purpose, in our view, is to look into the activities of the trusts for some time and thereafter, if the activities are being carried out in accordance with the objects of the trust/institution let the trust or institution carry on the activities. However, if it is not being carried out then at that stage, the registration already granted can be cancelled. Therefore, in our view, it was premature on part of the Commissioner at the time of very creation of the trust and moving of an application to ask for the charitable activities having already been carried out by the assessee-trust. 8. In our view, the object of section 12AA is to examine the genuineness of the objects of the trust but not the income of the trust for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
