9911796707
TMI Blog2015 (12) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... be a charitable trust, assessee filed an application in form no.10A before the Commissioner of Income-Tax, Rajahmundry on 25.4.2013 for grant of registration u/s 12A of the Act. The CIT in course of proceeding before him called upon the assessee to produce the trust deed and other details. After considering the objects of the assessee and other materials on record, the CIT rejected assessee's application for grant of registration basically for the reason that the assessee has not maintained any books of accounts from the date of inception of trust till 31.3.2013. He further noted that the trust vide letter dated 12.9.2013 has admitted that it is not having funds to conduct all the activities mentioned in the trust deed. The CIT was therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's application for grant of registration. 5. We have heard the parties and perused the materials on record as well as impugned order of the CIT. Undisputedly, the assessee was created by registered trust deed dated 5.10.2012 and it applied for registration on 25.4.2013. Therefore, it is not unusual that it could not commence any activities within such a short period. Further, admittedly when it has not received any funds nor commenced its activities, there is no need to maintain books of accounts. In the aforesaid circumstances, it cannot be held that as the assessee has not maintained books of accounts or commenced its activities, the activities are not genuine, hence, registration cannot be granted u/s 12A of the Act. So far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitle the assessee for exemption u/s 11 of the Act. The Assessing officer is empowered under the Act to look into both the genuineness of the activities and application of fund and in case of any violation of the provisions contained under section 11 to 13 of the Act, the assessee would not be entitled for exemption u/s 11 and would be subjected to tax. That being the case, in our view, refusal of grant of registration u/s 12AA of the Act is not justified solely on the ground that the assessee has not commenced its activities. We are supported in our view by the decisions relied upon by the assessee. In that view of the matter, we set aside the order of the CIT and direct him to grant registration u/s 12AA of the Act to the assessee." Ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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