TMI Blog2017 (8) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... stitutions, and receives donations, the registration under section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this stage, only the genuineness of the objects has to be tested and not the activities, which have not commenced. The enquiry of the Commissioner of Income-tax at such preliminary stage should be restricted to the genuineness of the objects and not the activities unless such activities have commenced. The trust or society cannot claim exemption, unless it is registered under section 12AA of the Act and thus at that such initial stage the test of the genuineness of the activity cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of Section 2(15) of Act, 1961, hence, not liable for registration. Thereagainst, respondents preferred I.T.A. No.363/LKW/2015, which has been allowed vide impugned order dated 6th October, 2015, observing that Association is treated for advancement of sport (Wrestling), therefore, its activities are within term 'charitable'. Tribunal allowed appeal and directed CIT(E) to register Association-respondent under Section 12AA of Act, 1961. 5. Learned counsel for the parties at the outset could not dispute that issues raised in this appeal are squarely covered by Division Bench judgment of this Court in Commissioner of Income Tax-II Vs. R.S. Bajaj Society, (2014) 222 TAXMAN 111. The judgment reads as under: 1. The appeal by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this stage, only the genuineness of the objects has to be tested and not the activities, which have not commenced. The enquiry of the Commissioner of Income-tax at such preliminary stage should be restricted to the genuineness of the objects and not the activities unless such activities have commenced. The trust or society cannot claim exemption, unless it is registered under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nerating incomes for its members. 4. Similarly, the judgment of the Punjab and Haryana High Court in Aman Shiv Mandir Trust v. C/r: [2008] 296 ITR 415/[2007] 162 Taxman 412 is also distinguishable because in that case, it was found that the application filed by the assessee was delayed by more than four years. Nothing had been spent during the previous five years on any charitable purpose. Moreover, huge amounts of fixed deposits were found in the name of a trustee who had later approached the Settlement Commission admitting his guilt. Hence, it is clear that both these judgments are on the peculiar facts as slated hereinabove and are distinguishable. The appeal would, therefore, not give rise to any substantial question of law and it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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