9911796707
TMI Blog2017 (11) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... on), Kolkata rejecting the application for grant of approval of the assessee u/s 80G of the Income Tax Act, 1961. 2. The Assessee is a Society registered under the West Bengal Society Registration Act, 1961. A certificate of Registration of Societies granted by the Registrar of Societies, WB, is at page - 29 of the paper book and is dated 29.09.2016. The objects for which the assessee was established as per the Memorandum of Association of the Society are as follows :- a) To acquire, establish, start, aid, run, maintain or manage educational institutes, libraries for the benefit of the public. b) To arrange and organise lectures, debates, discussions, seminars & excursions for the diffusion of knowledge. c) To publish or cause to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trees in the locality to make the world green. q) To arrange and organise old age-home to help the needy people of the society without profit motive. r) To arrange for medical treatment to the Deaf & Dumb and handicapped persons by rendering qualified doctors, medicines and other allied articles free of cost. s) To help the people in marriage, funeral and cremation of the dead. t) To help to organise self-help group based programme for augmentation of the livelihood opportunities of the people at the grass root level as being beneficial to the public or to a section of public. " 3. The assessee made an application for grant of registration u/s 12AA of the Act and also for grant of registration u/s 12AA of the Act and also for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t were accounted by it as donations. The Assessee did not open a Bank Account till 26.12.2016 and therefore the Assessee requested donations be made by payments directly for meeting expenses of the Assessee trust. It was the case of the assessee that it had opened a bank account only on 26.12.2016 and prior to this period they were making a request to the donors to meet the expenses of the assessee in lieu of donations directly to the assessee. M/s. Bimla Devi Bhutoria Charitable Trust had also confirmed the aforesaid facts. The CIT(Exemption), Kolkata was of the view that on the payments by M/s Bimla Devi Bhutoria Charitable Trust they would claim such payments as donations and application of income for charitable purpose. The Assessee on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding I was driven to the conclusion that in absence of proof of activity, registration u/s 12AA cannot be granted. Therefore the application for grant of registration u/s 12AA is hereby REJECTED on merit." 6. As far as application of grant of approval u/s 80G of the Act is concerned the CIT(E) refused to grant approval and registration u/s 12AA have been rejected. 7. Aggrieved by the aforesaid orders of CIT(A) the assessee has preferred the present appeals before the Tribunal. 8. We have heard the rival submissions. As far as grant of registration u/s 12AA of the Act is concerned, it is clear from the order of CIT(E) that the only reason given by him for rejecting the assessee's application for grant of registration u/s 12AA of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing view: "4. 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 the revenue under Section 260A of the Income-tax Act, 1961 arises from a judgment of the Income Tax Appellate Tribunal, Lucknow Bench dated 7 August 2013. The assessee had challenged before the Tribunal an order of the Commissioner of Income-tax-ll. Lucknow dated 6 September 2012 declining to grant registration under Section 12AA of the Income-tax Act, 1961. The only ground on which the CIT rejected the application for registration was th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities, 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 be a ground on which the registration may be refused. 2. The ITAT has held that in view of the judgment of the Division Bench of this Court in Hardayal Charitable & Educational Trust case (supra), the order of rejection by the Commissioner was contrary to the law as laid down. Moreover, the Commissioner did not raise any issue about t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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