TMI Blog2017 (11) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-trust are not of charitable character. Further, the Assessing Officer while passing the assessment order under section 143(3) of the Act for the assessment year 2012-13 had accepted the income of the assessee at nil as returned by the assessee. Therefore, the income derived by the assessee by way of fees from the students was applied for the aims and objects of the trust. The Commissioner of Income- tax had not found that the activities carried out by the assessee were not in consonance with its objects. Still further, in the enquiry report submitted by the Assessing Officer, nothing was mentioned as to on what basis he did not recommend for registration to the assessee. The Tribunal had rightly held that the trust was eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case, the Income-tax Appellate Tribunal's order is not perverse in holding that the nature of activities by which income is derived is not relevant for the purpose of drawing satisfaction about the genuineness of activities of trust while granting registration ? IV. Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in ignoring the specific findings of the Commissioner of Income-tax that the applicant's aims/objects and the terms of memorandum were not of charitable nature ? V. Whether on the facts and in the circumstances of the case, the order of the Income-tax Appellate Tribunal is not perverse in ignoring the Commissioner of Income-tax's conclusion that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the aims and objects of the assessee were not charitable in nature. Against the order dated November 5, 2013 (annexure A1), the assessee filed an appeal before the Tribunal who vide order dated July 6, 2016 (annexure A2) allowed the appeal and directed the Commissioner of Income-tax to grant registration to the assessee as per law. Hence, the present appeal by the Revenue. 3. After hearing learned counsel for the Revenue, we do not find any merit in the appeal. 4. Examining the factual matrix, nothing had been placed by the Revenue to show that the fees charged by the assessee from the students had been used for the purposes other than running the educational institution managed by the assessee-trust. There is nothing on record t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he trust or institution, he will pass an order granting registration. If he is not so satisfied, the provisions of section 12AA require him to pass an order refusing such registration. We thus note that section 12AA of the Act prescribes the scope and ambit of the enquiry that the Commissioner is authorized to carry out at the time of grant of registration to a trust or institution. The scope and ambit of the enquiry revolves around the nature of the objects being charitable or religious and the genuineness of the activities of the trust or institution. In this context, the hon'ble Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust v. DIT (Exemptions) [2006] 285 ITR 327 (Karn) has set out the guidelines th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in view of decision of the hon'ble Karnataka High Court referred to above and various other decisions relied upon by the learned counsel for the assessee-trust, we are of the considered opinion that the learned Commissioner of Income-tax was not justified in rejecting the application of assessee for grant of registration. Accordingly, we hold that the appellant-trust is eligible for registration and accordingly direct the learned Commissioner of Income-tax to grant registration to the assessee-trust as per law. 5. No illegality or perversity could be demonstrated by learned counsel for the Revenue in the aforesaid findings recorded by the Tribunal. 6. In view of the above, no scope for interference by this court is made out so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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