TMI Blog2017 (10) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax at such preliminary stage should be restricted to the genuineness of the objects - Decided against Revenue. - Income Tax Appeal No. 33 of 2017 - - - Dated:- 7-9-2017 - Hon'ble Sudhir Agarwal And Hon'ble Ravindra Nath Mishra-II, JJ. For the Appellant : Alok Mathur ORDER 1. Heard Sri Alok Mathur, learned counsel for appellant and perused the record. 2. This appeal under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as the Act, 1961 ) has arisen from judgment and order dated 12.04.2017 passed by Income Tax Appellate Tribunal, Lucknow Bench 'A', Lucknow (hereinafter referred to as the Tribunal ) in ITA No. 492/LKW/2016. 3. Learned counsel for appellant could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s necessary for claiming exemption under sections 11 and 12 of the Act, the Commissioner of Income-tax is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust, set 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 Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the rejection of the application by the Commissioner. Moreover, it was held by the Kerala High Court that the society had not done any charitable work and its activities on the contrary had been carried out only for the purpose of generating 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 Settle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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