TMI Blog2016 (4) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 12A of the Act. The ld. CIT(A) has not brought out any allegation or fact on record to establish and allege that the receipts of application trust were not used for charitable purposes and nor it has been shown that receipts were misappropriated or misused by the trustees or office bearers of the trust. Hence this allegation has no legs to stand. No clause or provision in the trust deed which shows that the control of properties and finance is safely given to members to enjoy the fruits of the properties and financial resources and receipts of the trust. The trust is running on deed which was made on 27.12.2010 and the trust is an educational and charitable trust with the object to help in spreading of education in its widest connotation with special focus on education of poor and needy without any preference on the basis of religion, race, caste, sex or place of birth and operation of the trust shall be carried in accordance with the intention of earning profits will perform with service motive only. In such situation the basis and allegations labelled by the ACIT are not found to be sustainable. registration u/s 12AA to be allowed - Decided in favour of assessee - ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he second round of proceedings with this appeal. However, the applicant-assessee has raised as many as 10 grounds in this appeal but except Ground No. 3, the other grounds are argumentative and supportive to the main Ground No. 3 which reads as under: 3. That the CIT has wrongly dismissed the application for registration under section 12AA of the income tax act, 1961 without giving appropriate opportunity and ignoring all merits of the case. In fact the Ld. CIT did not give any hearing on the matter and left it on the Ld. ITO Hq. (vig), Rohtak. 3. We have heard the arguments of both the sides and carefully perused the relevant material placed on record before us. The ld. AR submitted that the ld. CIT(A) has wrongly dismissed the application for registration u/s 12A of the Act without giving opportunity of being heard to the assessee as per the direction of the ITAT vide order dated 11.6.2012 [supra]. The ld. AR vehemently contended that the ld. CIT again rejected the application for registration u/s 12A of the Act by ignoring all the merits and relevant facts of the case. The ld. AR also pointed out that in fact, the ld. CIT, Rohtak did not give opportunity of hearing on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e note that the Tribunal directed the ld. CIT to decide afresh the issue of grant of registration u/s 12A of the Act and grant of approval u/s 80G of the Act by observing as under: 5. We have heard rival contentions and gone through the relevant material available on record. The CIT has not indicated the nature of information not furnished and without considering the documents filed by the applicant along with applications for registration u/s 12AA/80G has rejected assessee s claim solely on the ground that applicant could not file most of the information call for. We find force in the argument of Id. counsel that CIT failed to consider the claim of the applicant on merit, without considering the record and affording opportunity of being heard to the applicant on alleged non compliance. In the interest of natural justice we deem it fit and proper to restore the issues in question i.e. registration u/s 12AA/80G, back to the file of CIT for decision afresh on merit in accordance with law, after affording reasonable opportunity of being heard to the appellant. We order accordingly. 6. From the vigilant perusal of the relevant material on record, we note that the ld. CIT has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2A of the Act, the ld. CIT has to record his satisfaction about the charitable objects and genuineness of the proposed activities of the applicant. The clause 10 and 12 clearly mandates the charitable activities of the trust. It is not pre-requirement for seeking registration u/s 12A of the Act that the applicant must show and establish having undertaken charitable activities before filing such application for registration u/s 12A of the Act. The ld. CIT(A) has not brought out any allegation or fact on record to establish and allege that the receipts of application trust were not used for charitable purposes and nor it has been shown that receipts were misappropriated or misused by the trustees or office bearers of the trust. Hence this allegation has no legs to stand. 9. Next allegation made by the ld. CIT(A) is that the applicant trust has amended constitution without following the procedure and properties of the trust and financial control are in the hands of the members and crucial power to transfer the assets to any or many members of the office bearer but we are unable to see any such clause or provision in the trust deed which shows that the control of properties and fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 12AA of the Act require him to pass an order rejecting such application of registration and section 12AA of the Act prescribes and provides the scope and ambit of the inquiry that the commissioner is authorised to carry out at the time of grant of registration u/s 12AA of the Act to a Trust or institution. From these provisions, it is amply clear that the scope and ambit of the inquiry revolves around the nature of objects being charitable or religious and the genuineness of the activities of the trust or institution. At this juncture, it is relevant to take respectful cognizance of the judgment of Hon ble Karnataka High Court in the case of Sanjeevamma Hanumath Gowda Charitable Trust vs DIT(E) reported as 285 ITR 327 (Karnataka) wherein their lordships have set out the guidelines for the purpose of grant of registration u/s 12AA of the Act and has held that the registration granting authorities have to be satisfied about the genuineness of the activities of the Trust or institution and they are required to see that how the income derived from the trust property is applied to charitable purposes. 14. On this issue, it is relevant and necessary to take respectful cogniza ..... X X X X Extracts X X X X X X X X Extracts X X X X
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