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TMI Blog2016 (2) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... at the appellant-trust was formed on 24/07/1991 and it was duly registered with the Sub-registrar, Bangalore. The appellant trust was formed with the following objects: 1. To advance the cause of education and diffusion of knowledge without distinction of caste, creed, sex or language. 2. To provide establish, endow, maintain, control and manage schools and other educational institutions and to do all the acts and things necessary for or conducive o the promotion of schools of the Montessori and Kindergarten types Primary, Secondary, Higher commercial, technical and industrial education at Nelamangala or elsewhere and for this purpose to start, establish conduct, maintain, manage, reading rooms, libraries, laboratories, gymnasiums, wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are covered by the definitions of charitable purpose as 2(15) of the IT Act, 1961 with all statutory deficiations and replacements thereof in future. 3. Thus, the appellant-trust was formed with the object of advancing the cause of education, diffusion of knowledge environment, to establish run schools etc. The assessee society made an application in form No.10A dated 18/12/2014 to the CIT(E) Bangalore for registration of the Trust u/s 12A of the IT Act, 1961 and for approval u/s 80G of the IT Act, 1961 in Form No.10G vide application dated 28/01/2014 for grant of approval u/s 80G of the IT Act, 1961. The ld. CIT(E) vide his letters dated 16/04/2015, 29/06/2015 and 15/07/2015 sought certain information which has been duly complied with by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(E) denied the registration only on the ground that the appellant-trust had not furnished the clarification as to receipt of rental income for conducting tuitions and the appellant-trust was not serious in prosecuting the applications. In our considered opinion, the contentions of the ld.CIT(E) are not tenable in the facts of the present case as the appellant-trust had duly complied with all the letters issued by him and therefore, the ld.CIT(E) should not have held that the appellant-trust was not serious in prosecuting the applications. The receipt of rental income by the appellant-trust can be examined only during the course of assessment proceedings by the Assessing Officer after grant of registration. It was so held by the Hon'ble j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, the question is with regard to the registration of the trust in question wherein the objects have been clearly specified. The question of assessing the activities of the trust would arise only after the trust is registered and carries on the activities. At the time of initial registration, the same cannot be a question to be considered. In our view, the Tribunal has rightly allowed the appeal and directed the DIT(Exemption) to register the society as a religious trust u/s 12A of the Act". It may be further added that the Co-ordinate Bench of the Delhi Tribunal (Hon'ble AM is the author) in the case of Paramount Public School Vs CIT, Rohtak in ITA No.5712/Del./2013 dated 28/10/2015 after referring to the decision of the Hon'ble Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re allowed in full. 9. Therefore, the propositions laid down in the aforesaid cases are that genuineness of the activities of the trust and nature of receipt of any sum of money cannot be gone into at the time of registration of the trust. It is only after the activities of the trust are commenced, the genuineness of the objects can be examined during the course of assessment proceedings, after the grant of registration by the IT Authorities. Respectfully following the ratio laid down in the cases cited supra, we direct the ld.CIT(E) to grant registration u/s 12A of the IT Act. Thus, the appeal filed by the trust is allowed. ITA No.1228/Bang/2015: 10. Since we have directed the ld.CIT(E) to grant the registration of the trust under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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