TMI Blog2012 (10) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... R MITTAL AND G.S. SANDHAWALIA, JJ. For the Appellant: Mr. Yogesh Putney ORDER Ajay Kumar Mittal, J. The present appeal has been filed under Section 260A of the Income-tax Act, 1961 (for short 'the Act') against the order dated 20-01-2012 passed by the Income-tax Appellate Tribunal (for short 'the Tribunal'), Bench 'B' passed in ITA No.1103/Chd/2009 for the assessment year 2008-09 claiming the following substantial question of law:- Whether the Ld. ITAT has erred in law in setting-aside the order passed by the Commissioner of Income-tax, Panchkula and allowing registration u/s 12AA of the Income-tax Act, 1961 to the applicant society despite the clear findings recorded by the Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub-section (1A) and (2) of Section 12AA of the Act, are procedural in nature, whereas Sub-section (3) of Section 12AA of the Act, empowers the Commissioner to cancel the registration of the Trust or Institution, if he is satisfied that the activities of such Trust or Institution are not genuine or are not carried out in accordance with the objects of the Trust or Institution. Section 11 of the Act contemplates that the income as specified therein shall not be included in the total income of the previous year of the person in receipt of the income derived from the property held under the Trust wholly for charitable or religious purposes, whereas Section 12 of the Act, deals with the contributions received by the Trust or an Institution, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the Trust is undertaking at present and also which it may contemplate to undertake. The insertion of sub-section (3) to Section 12AA of the Act, clarifies the said fact, when it empowers the Commissioner to cancel the registration if the activities of the Trust are not carried out in accordance with such objects. Therefore, the object of Section 12AA of the Act, is to examine the genuineness of the objects of the Trust, but not the income of the Trust for charitable or religious purposes. The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Therefore, we find that the judgments referred to by the learned counsel for the appellant are not applicable to the facts of the present c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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