TMI Blog2015 (11) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 for the assessment year 2013-14. Therefore, it is the Commissioner of the Income Tax, Rohtak, who had valid jurisdiction for the appellant society. The jurisdiction of Commissioner of Income Tax is always determined with reference to the situs of the Assessing Officer. In the circumstances, the first objection raised by the CIT is rejected and it is worthwhile to mention here that the learned CIT(DR) fairly conceded before us that this objection does not hold water. Commissioner is only entitled to examine whether the objects of the institutions are charitable or not. Once the objects of the institutions are found to be charitable, the Commissioner has no option, but to grant registration. In the present case the Commissioner has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jecting the application of the assessee for registration u/s 12AA although Society fulfils all the conditions for registration and all the objects and activities of the Society are eligible for grant of registration u/s 12AA of the Act. iii. That the appellant craves leave to add or alter any Ground of Appeal. 2. The brief facts of the case are that the appellant society was registered on 17th March, 1995 vide Certificate No. 83 of 1995 under the Societies Registration Act with the Registrar of Firms Societies, Shimla, Himachal Pradesh. The appellant society filed an application for registration under the provisions of Section 12AA of the Income-tax Act, 1956 (for short the Act ) in Form No. 10A with the Commissioner of Income Tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corpus funds and therefore, the CIT had no opportunity for examining the genuineness of the activities of the appellant society. Therefore, she prayed that the matter may be restored back to the file of the CIT for fresh examination of this issue. 5. We heard the rival submission and perused the material on record. In the present appeal, we are required to adjudicate whether the Commissioner of Income Tax, Rohtak was justified in rejecting the application for registration under Section 12AA of the Act or not. The Commissioner of Income Tax had rejected the application primarily on two grounds. The first ground relates to the jurisdiction of the case, according to ld. CIT, jurisdiction of the case did not lie with him. First of all, we sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examine, whether the application is made in accordance with the requirement of Section 12A , whether the form has been properly filled up or not and the objects of the society are charitable or not. The relevant para of aforesaid case is reproduced below: 2. A reading of the section shows that the registration under section 12A is a precondition for availing the benefit under sections 11 and 12 of the Act. Section 11 provides for exemption of income which is applied for charitable purposes. Section 12 is in the nature of an Explanation to section 11. Before a person can claim the benefits of section 11 or section 12, as the case may be, he must obtain registration under section 12A. The application for registration under section 12A ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of income is yet to arrive when such trust/institution files the return. The relevant para of this case is reproduced as under: ..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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be considered as genuine trust. If the activities of the institution are taxable for any reason the matter to be considered at the time of assessment. The source of income cannot be questioned at the time of granting the registration under Section 12AA of the Act. 7. The ratio that can be culled out from the above decisions is that the Commissioner is only entitled to examine whether the objects of the institutions are charitable or not. Once the objects of the institutions are found to be charitable, the Commissioner has no option, but to grant registration. In the present case the Commissioner has not found that any objects of the trust are not charitable in nature. The objections raised by the CIT that the appellant had failed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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