TMI Blog2016 (2) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 jurisdictional High Court in the cases of Sri Gururaja Seva Samithi [2015 (7) TMI 954 - KARNATAKA HIGH COURT ]. The Hon’ble jurisdictional High Court in this case had clearly held that the question of verifying the activities of the trust can be considered only after it is registered and carries on activities subsequently. Thus 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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, workshops, publishing houses, hostel residential quarters and the like. 3. To disseminate knowledge by publishing books, pamphlets and through lectures on Gandhian principles of truth non-violence and universal brotherhood. 4. To run night schools or to arrange to hold adult education class or physical training classes on such times or at such centres or at such time of the year as may be found convenient to the trust and to take up the social work. 5. To arrange to hold training cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the appellanttrust vide its letters dated 28/04/2015, 24/06/2015, 06/07/2015 and 15/07/2015. After perusing the information filed by the appellant-trust, the CIT(E), vide his impugned orders dated 31/07/2015 had denied the registration u/s 12A and approval u/s 80G of the Act by holding that the appellant-trust did not explain the details of receipt of rental income of ₹ 47,420/- for conducting the tuitions. The ld.CIT(E) further held that the appellant-trust was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 jurisdictional High Court in the cases of Sri Gururaja Seva Samithi. The Hon ble jurisdictional High Court in this case had clearly held that the question of verifying the activities of the trust can be considered only after it is registered and carries on activities subsequently. The Hon ble High Court after referring to its earlier decision in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust Vs DIT(Exeptn.) held as follows; 4. It is an undi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety 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 High Court of Karnataka in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust Vs DIT(Exemption) 285 ITR 327 (Kar.), Hon ble P H High Court in the case of CIT Vs Surya Education and Charitable Trust (2013) 355 ITR 280(P H) and Allahabad High Court in the case of Fifth Generation Education Society Vs CIT 185 ITR 634 (All.) held as follows vide para-7 of the judgment. 7. The ratio that can be culled out from the above decisions is that the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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