TMI Blog2017 (10) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... der obligation to consider the objects of the trust which are available in the trust deed itself. Even otherwise, the concerned Revenue Authority was empowered to withdraw the registration already granted or cancel the said registration if he came across that factually trust has not conducted any charitable activities. Hence, we direct the Ld. CIT(E) to grant the registration u/s 12A of the Act to the assessee and it is clarified in case, the assessee does not qualify/satisfy the objects of the trust and/or not involved in genuine activities, then the concerned authority shall be at liberty to withdraw or to cancel the registration u/s 12A of the Act. - I.T.A. Nos.670 (Asr)/2015 And I.T.A. Nos.671 (Asr)/2015 - - - Dated:- 30-8-2017 - SH.T.S. KAPOOR, ACCOUNTANT MEMBER AND SH.N.K.CHOUDHRY, JUDICIAL MEMBER For The Appellant : Sh. Joginder Singh (Ld. CA.) For The Respondent : Sh. Ghulam Mustfa (Ld. DR) ORDER PER N. K. CHOUDHRY: Both the Appeals are identical and issues involved are also almost similar, therefore the same have been taken for adjudication by this common order. For the sake of convenience and brevity, facts and grounds raised in Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the trust which reflects from entry of ₹ 20 lakhs as donation which was thereafter, converted into a FDR by the trust. Further query sought by the Ld. CIT(A) replied by the assessee society, however, the Ld. CIT(E) observed that application u/s 12AA statutory requires to be processed on the basis of twin criteria i.e., objects of the trust and genuineness of the activities and finally rejected the registration on three limbs first that the assessee has not carried out any charitable activity, secondly has only entered into agreement to purchase a piece of land in the name of activity and thirdly, in the trust deed having some restrictive clauses which rendered working of trust as capable of being controlled by a single family and contents of objects of the trust do not find corroboration in shape of any positive action taken towards either education or any of the other objects enunciated in the trust deed and finally the Ld. CIT(E) held that in the absence of any charitable activity in the instant case, both the objects of the trust and the genuineness of the activity do not stand corroborated. 4. The assessee trust assailed the order before us and in support of its ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he - (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. (2) Every order granting or refusing registration under clause (b) of subsection which the application was received under clause (a) of section 12A.] From the contents of the Sec.12AA, it encompass that the Ld. CIT(E) in order to satisfy himself about the genuineness of the activities of the trust or institution can call for such documents or information from the trust or institution as he thinks necessary and also empowered to make such enquiry as he may deem fit necessary in this behalf. Second Clause deals with that after satisfying himself about the object of the trust or institution and the genuineness of the activities, he shall pass order in wri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason for denial of registration by the Ld. CIT was that that the assessee trust has not carried out any activity. Second reason that the assessee trust has initially decided to construct school meditation hall at Asar Doda but later purchased land for school at Niabhat, Nagrota Third reason that the activities of assessee trust are controlled by one family. The reasons given by the Ld. CIT(E ) does not sound good because, one side reasoned that no activity has been carried out by the Assesse Trust, on the other hand has doubted the intents of the objects and further observation that initially the Assessee wanted to construct school meditation hall at Asar Doda but later purchased land for school at Niabhat, Nagrota, in our view, the trust that time was undoubtly at nascent stage and has not carried out any activity except to make efforts for procuring land for school, however later on purchased the land for school at Niabhat, Nagrota, which clearly shows the intention of the trust as the main object of the trust is to establish schools etc. and to provide education, therefore, one can expect from the trust to do activity of the charity immediately and in that situati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the trust was formed and registered only on 12th March, 2015 thereafter, application for registration u/s 12AA was filed on 15.05.2015 and the impugned order was passed on 30th Nov. 2015 and till the disposal of the application the assessee has only received single donation and tried to procure the land for establishment of the School and further because the assessee trust was at nascent stage, therefore, could not carry any activity and according to aforesaid judgments it is clear that statute does not prescribe a waiting period for a newly registered trust to qualify itself for registration under Section 12AA of the act and wait till the activity commence. From the conjoint reading of the aforesaid judgments, it can be safely concluded that even otherwise if no activity was carried out by a trust or institution, still registration can be granted by the CIT(E) and even otherwise it is not the case of the Revenue that at the time of consideration of application of the Assessee, the assessee has carried out many activities and their genuineness were in doubt but in the instant case grievance of the CIT(E) is only that there was no activity carried out by the assessee. Although ..... X X X X Extracts X X X X X X X X Extracts X X X X
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