TMI Blog2010 (7) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... b Registrar, Chandigarh. The assessee filed an application for registration u/s 12A of the Act on 31.03.2008 i.e. after a gap of six years. The said application was forwarded to the Assessing Officer for verification of genuineness of the trust and its activities with regards to its aims and objective. The applicant did not furnish the requisite information before the Assessing Officer and did not produce its Books of accounts. On the report of the Assessing Officer the assessee was issued another opportunity by the CIT. The applicant filed the copies of its returns of income for the assessment years 2005-06 and 2006 07 but fail to produce books of account and any information about its activities. The application for grant of registration u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the CIT has no retrospective effect. Thus, the trust forfeits its right to claim registration prior to the above said date. Its claim for registration u/s 12A of the Income Tax Act, 1961 for the A.Y. 2008-09 automatically fails. b. The above detail clearly points out that not a single paisa has been spent on charitable activity by the assessee trust on charitable purpose that is why the assessee trust had failed to produce even a single bill i.e. prior to financial year 2009-10 on this account. c. On going through the clause of the deed mentioned above it becomes clear that it has been prepared with the sole purpose of earning money from the business of running educational institution on convent pattern.All the investment h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was made to further clarify the dissolution clause. Further clarification of the Learned. AR in respect of various objections raised by the CIT were as under :- i. The Supplementary deed is only a part of the original trust deed which was made to further clarify the dissolution clause. ii. The assessee had duly submitted all the documents desired by the Ld. Commissioner of Income Tax 2, Chandigarh including audited Balance Sheet, Profit and Loss Account, Form 10B, books of accounts i.e. cash book and ledger with supporting vouchers and bills. The assessee had also duly submitted the note on charitable activities carried on in the earlier years supported with the confirmations from Stepping Stones Sr. Sec. School, Chandigarh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ors. Vs UOI Ors. (37 DTR 105) which has been held in our favour. The Hon ble High Court6 has relied on the order of the Hon ble Supreme court in the case of American Hotel and Lodging Association Educational Institute Vs Central Board of Direct Taxes and others (2008) 216 CTR 377 (SC). vii. It is therefore humbly prayed that the trust may kindly be granted registration u/s 12A of the I.T. Act, 1961 which has been rejected by the Ld. CIT merely on surmises and conjectures. 6. The Learned DR for the Revenue placed reliance on the observations of CIT and pointed out that the activities of the assessee were carried out for profit making. 7. We have heard the rival submissions and perused the record. The assessee trust was create ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income and expenditure statement and balance sheet for the financial year 2004-05 to 2008-09, but the application for registration was moved by the assessee on 31.03.2008 for registration of trust u/s 12A of the Act. 9. The Hon ble Allahabad High Court has held in the case of 5th Generation Education Society Vs CIT 185 ITR 634 (All) that where the application has been made properly in accordance with section 12 A and the objects are charitable it is enough to grant registration. Similarly the Delhi Bench of the Tribunal held in the case of Guru Harkrishan Medical Trust Vs DIT (Exemptions) 18 DTR 218 (Del) (Trib). The Hon ble Delhi High Court in the case of Dir. of I.T. Vs Guru Nanak Foundation (292 ITR 589) has held that purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original trust deed. We find no merit in the objections raised by the CIT in this regard. The assessee is entitled to the claim of registration u/s 12A of the Act from the date of filing the application u/s 12A of the Act in accordance with law. 11. The second objection of the CIT in refusing to ground registration was in view of the ratio laid down by Hon ble Uttarakhand High Court in CIT, Haldwani Vs M/s Queen s Educational Society, Haldwani (date of decision 24.09.2007). The Hon ble Punjab Haryana High Court in Pinegrove International Charitable Trust Ors Vs Union of India and ors (2010) 37 DTR 105 (P H) have dissented from the ratio laid down by the Hon ble Uttarakhand High Court in CIT, Haldwani Vs M/s Queen s Educational Socie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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