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TMI Blog2012 (9) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, 1961 as charitable institution and the second appeal being ITA No. 574/H/2012 is against refusal grant approval u/s 80G. 3. The assessee filed an application in Form No.10A on 04.08.2011 and was issued detailed questionnaire dated 27.10.2011. DIT(E)(Exemption) was of the opinion that no valid trust was created and the assessee was only mere extension of L.V.Prasad eye Institute, operated by the Trust Hyderabad Eye Institute and not a separate institution. 4. The first objection of the DIT(E) was that no amount was transferred towards corpus of the trust by the settler at the time the Trust was formed, even though a sum of ₹ 1,00,000/- has been mentioned in the trust deed as contribution by the settler towards corpus fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. The application u/s.10A and registration under Section 12A is to see whether the trust or institution formed is having the objects of charitable nature and the terms of the trust did not indicate that the trust is formed with the profit motive, approval under Section 12A is at the inception of the trust and verification of the trust deed would be to ensure the charitable nature of the object of the Trust. Even though sec 12AA provides for the DIT(E) to verify and satisfy himself about the genuineness of the activities of the Trust, when the application for registration is made at the very inception of the Trust, there is not likely to be very many activities from which may not possible to determine the genuineness or otherwise of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technical error and a donor agreeing to contribute regularly cannot take away the genuineness of the trust or that the trust is for charitable purposes. As regards the purchase order or invoice being raised in the name of Hyderabad Eye Institute cannot be the basis for rejecting the registration when it is a fact that the donor themselves purchase instruments and give the same to the charitable institution. As regards the production of books, the assessee was not granted enough time to produce books as no activities had been carried on in full swing and, therefore, this cannot be the basis for rejecting the application. 13. In the circumstances, we are not able to agree with the DIT(E) rejecting the application for registration made by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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