TMI Blog2016 (7) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... he scrutiny assessment u/s. 143(3) for A.Y. 2012-13 has accepted the income of assessee at Nil as returned by assessee. Thus it can hardly be said that the income derived by the trust by way of fees from the students were applied by the assessee-trust for the purpose other than the aims and objects of the trust. Also not the case of the Commissioner that the fees charged from the students received have been used for the purposes other than running the Educational Institution managed by the Assessee Trust. It is also not the case of the Commissioner that the activities carried out by the assessee are not in consonance with its objects. The ld. CIT has also not mentioned the exact enquiry report sent by the departmental authorities to asc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. The impugned order reveals that the appellant trust filed an application for registration u/s. 12AA of the IT Act, 1961 on 30.03.2011 accompanied by copy of trust deed dated 14.12.2007, income expenditure account and balance sheet for A.Ys. 2007-08, 2008-09 and 2009-10. In compliance to the Tribunal s directions, in order to verify the nature of appellant s activities and objects, the Commissioner of income-tax called for a report from the Assessing Officer through joint commissioner of Income Tax, Rohtak, who vide his letter dated 18.10.2013 furnished their report and did not recommend for registration u/s. 12AA. The learned Commissioner of Incometax, however, held that the aims and objects of the assessee are not charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objects of the Trust are charitable in nature. For this proposition, reliance is placed on the following decisions :- (i). Fifth Generation Education Society v. CIT, 185 ITR 634 (All.) (ii). Surya Educational and Charitable Trust, 355 ITR 280 (P H). (iii). Maliram Charitable Trust vs. CIT, 260 ITR (AT) 118 (Amr.) (iv) Sanjeevamma Hanumanthe Gowda Charitable Trust vs. DIT, 285 ITR 327 (Karn.) (v). St. Don Bosco Educational Society v. CIT 90 ITD 477 (Luck) and (v). Aggarwal Mitra Mandal Trust v. DIT, 106 ITD 531 (Del.) It was further submitted that there is no statutory condition that the Trust could not charge fees to meet its educational expenses from the students. There is no allegation by the ld. CIT that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner shall call for documents and information and conduct enquiries to satisfy about the genuineness of the activities of the trust or institution. After the Commissioner is satisfied about the charitable or religious nature of the objects and genuineness of the activities of the trust or institution, he will pass an order granting registration. If he is not so satisfied, the provisions of section 12AA require him to pass an order refusing such registration. We thus note that section 12AA of the Act prescribes the scope and ambit of the enquiry that the Commissioner is authorized to carry out at the time of grant of registration to a trust or institution. The scope and ambit of the enquiry revolves around the nature of the objects ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee. The decision relied upon by the Commissioner in the case of Kale Khan Mohammad Hanif v. CIT may be relevant for assessment proceedings, but not for registration u/s. 12AA and hence, distinguishable on facts. Therefore, in view of decision of Hon ble Karnataka High Court referred to above and various other decisions relied upon by the ld. counsel for the assesseetrust, we are of the considered opinion, that the ld. CIT was not justified in rejecting the application of assessee for grant of registration. Accordingly, we hold that the appellant-trust is eligible for registration and accordingly direct the ld. CIT to grant registration to the assessee trust as per law. 7. In the result, the appeal of the assessee-trust is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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