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TMI Blog2016 (2) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... ch were general in nature. No major expenditure was incurred by the assessee society on account of charity. The learned Commissioner of Income Tax was of the view that most of the expenses debited to income & expenditure account are not covered within the meaning of section 2(15) of the Act. In this view, the application for registration under section 12AA of the Act was rejected. 3. Aggrieved by this order, the assessee has come in appeal before us, raising the following grounds of appeal: "1. That the learned CIT (Exemptions) did not appreciate that all the conditions for the registration of the appellant trust, main being 'to work for the welfare of Mentally Retarded & Mentally ill individuals' which is undoubtedly 'charitable', are duly fulfilled and as such the registration as claimed should have been allowed particularly when the activities are also genuine. 2. That the learned CIT (Exemptions) erred in holding that the no major expenses have been incurred by the applicant society on account of charity without appreciating the fact that expenses incurred on advertisement and printing and stationery are incurred towards organizing exhibitions in various S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been incurred by the applicant society on account of charity. The most of the expenses debited to income & expenditure account are not covered within the meaning of Section 2(15) of the Income Tax Act. Section 2(15) of the Income-tax reads as under: "charitable purpose" includes relief of the poor, education, medical relief, preservation of environment including watersheds, forests and wildlife and preservation of monuments or places or objects of artistic or historic interest and the advancement of any other object of general public utility." 7. From the perusal of the income & expenditure account of the assessee for the year ended 31.3.2014, placed at Paper Book, page 11, we observe that during the year, the assessee has received Rs. 26,300/- as donation and Rs. 863/- as interest, out of which it has incurred an amount of Rs. 27,079/- on administrative expenses such as accounting charges, advertisement, office maintenance, etc. Only an amount of Rs. 84/- is the excess of income over expenditure. The objection of the CIT(Exemption) is that the assessee has not spent any major amount for charitable purpose. In this regard, we also observe that the assessee society was started ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power to call for such documents or information from the assessee as he thinks necessary. The language used in the section only require that the activities of the Trust must be genuine, which would mean that they are in consequence with the objects of the Trust and not mere camouflage or against the objects of the Trust. The CIT cannot go beyond these two parameters while granting registration. The analysis of the income of Trust or its application is under the jurisdiction of the Assessing Officer while granting exemption under section 11 of the Act on year to year basis, in the assessment proceedings. 10. The reliance placed by the learned counsel of the assessee on the judgement of Punjab & Haryana High Court in the case of Surya Educational and Charitable Trust (supra) is not out of place, where the High Court held on under: "Therefore, the object of s. 12AA of the Act, is to examine the genuineness of the objects of the trust, but not the income of the trust for charitable or religious purpose. The stage for application of income is yet to arrive i.e. when such trust or institution file its return. Therefore, we find that the judgements referred to by the learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d D.R. is not applicable to the present case, as in that case there were ample evidences to show that the assessee society was not carrying out any genuine charitable activity. 14. In view of the above, we hold that the objects of the trust are charitable in nature and activities are genuine. Therefore, the CIT(Exemption) in directed to grant registration under section 12AA of the Act to the assessee trust. ITA No.688/Chd/2015 : 15. On the basis of his finding given for denial of registration under section 12AA of the Act, the CIT(Exemption) has also denied the approval under section 80G of the Act to the assessee. 16. In addition to what we have held on the merits of the case while deciding ITA No. 687/Chd/2015, in this case also the CIT(Exemption) has to decide the issue of approval only as per the provisions of section 80G of the Act, which he has not done in this case. The jurisdiction of CIT, while granting approval under section 80G of the Act has been summarized in a recent order of Chandigarh Bench of ITAT in the case of Shri Krishna Kirpa Gaushala Samiti, Pehowa at page 9, which reads as under: "9. On perusal of the above rules, it is quite clear that while granting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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