TMI Blog2015 (5) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been based on suspicion and conjectures. The additional information being asked for, as such, was never controverted. It was not contended that the information had been supplied but was not taken into consideration. Commissioner has to satisfy himself of the objects of the trust and the genuineness of the activities and after giving an opportunity of being heard to the trust or the institution, a refusal can be made to register the trust. Thus, the section gives power to the Commissioner to look into the genuineness of the activities of the trust and to satisfy himself about its activities. Under Section 12A, the provisions of Sections 11 & 12 shall not apply in relation to the income of any trust or institution unless various conditions are fulfilled. The said sections provide that income from property held for charitable purposes shall not be included in the total income of the previous year of the person in receipt of the income. These aspects have not been taken into consideration by the Tribunal which has placed heavy reliance upon the judgment of Pinegrove International Charitable Trust Vs. Union of India & others [2010 (1) TMI 49 - HIGH COURT OF PUNJAB AND HARYANA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was right in not upholding the findings of CIT u/s 12AA (1)(b)(ii) considering that assessee had failed to comply with provision u/s 12AA(1)(a) in as much as document and information called for was not submitted. 3. The factual matrix of the case in hand is that the respondent-Society was registered with the Registrar of the Societies on 19.04.2005. It applied for registration under Section 12AA of the Act, in form No.10A on 16.03.2012. The Commissioner, vide order dated 28.09.2012 (Annexure A-1), rejected the application by coming to the conclusion that the Society had not proved its case whether the activities were being run in a charitable manner and that the Society was not created wholly and exclusively for charitable purposes. The reasons which prevailed with the Commissioner was that fresh evidence had not been furnished to prove that there was any provision for free subsidized education for poor and whether there was any element of public benefit. It was further found that the land and building on lease had been taken from the daughter of the General Secretary of the Society and the power of attorney had been signed by the father, namely, Amarjeet Singh Saini who was al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Educational Society Vs. Commissioner of Income Tax 2015 (3) TMI 619, it had been specifically held that the earlier judgment of the Apex Court was dealing with the property tax provisions and therefore, could not have been relied upon and even the judgment of the Uttarakhand High Court had been reversed. Accordingly, the reasoning given by the Tribunal was projected to be correct. 6. After hearing counsel for the parties, we are of the opinion that the Tribunal was not justified in allowing the appeal and issuing necessary direction and should have sent the matter back to the Commissioner for fresh enquiry. Admittedly, the factum of the additional information being asked for was never denied by the respondent-Society. In appeal, the assessee had only raised the issue as to whether the order of the Commissioner is arbitrary and unjustified and whether the activities of the Society did not qualify in the nature of charity and the finding had been based on suspicion and conjectures. The additional information being asked for, as such, was never controverted. It was not contended that the information had been supplied but was not taken into consideration. Under Section 12AA, the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.] 7. A perusal of the above section would go on to show that the Commissioner has to satisfy himself of the objects of the trust and the genuineness of the activities and after giving an opportunity of being heard to the trust or the institution, a refusal can be made to register the trust. Thus, the section gives power to the Commissioner to look into the genuineness of the activities of the trust and to satisfy himself about its activities. Under Section 12A, the provisions of Sections 11 12 shall not apply in relation to the income of any trust or institution unless various conditions are fulfilled. The said sections provide that income from property held for charitable purposes shall not be included in the total income of the previous year of the person in receipt of the income. 8. The provisions of Section 12AA, thus, also give the power under sub-section(3) to cancel the registration of the activities of the trust if it is not carried out in accordance with the objects but the Commissioner has to keep in mind that it is not to act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the other hand, Section 10(23C) of the Act are the provisions of the Act in substitution of the earlier provisions of Section 10(22) of the Act as to which income shall not be included in computing the total income of any person. Therefore, the provisions of Sections 11, 12 or Section 10(23C) of the Act, deal with the income of a Trust or of the Institution and the circumstances as to when such income is to be excluded for computing the total income, but the basis of such benefit is the registration under Section 12AA of the Act. Unless a Trust or Institution is registered under Section 12AA of the Act, such Trust or Institution shall not be entitled to exclude from its total income, deductions or contributions or from other sources. Therefore, the principles laid down for excluding the income from consideration under Section 10(22) now 10(23)(C) or Sections 11 and 12 are not applicable while considering the application for registration under Section 12AA of the Act. The application for registration is required to be made within one year of the creation of the Trust. Section 12AA of the Act, requires satisfaction in respect of the genuineness of the activities of the Trust, wh ..... 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