TMI Blog2018 (4) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... T(Ex) cannot refuse the registration u/s 12AA of the Act without finding out any defect in the objects of the trust. The powers of CIT(Ex) are limited to the aspect of examining whether the objects of trust are charitable in nature or not. It should be kept in mind that at the stage of commencement of institution/ assessee Trust, it is not relevant to decide whether the Trust has actually carried out the charitable activities because in this case it is at the infant stage only i.e. within 6 months of its incorporation the relevant applications were moved by the appellant. In view of above, we are inclined to direct the Ld. CIT(E) to consider the applications for registration u/s 12AA of the Act and u/s 80G of the Act afresh - Decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is a new trust. 3. For that on the facts and circumstances of the case the Ld. Commissioner of Income Tax (Exemption) may be directed to grant registration u/s.12AA of the IT Act,1961. 4. For that on the facts and circumstances of the case the order of the Ld. Commissioner of Income Tax (Exemption) be modified and the assessee be given the relief prayed for. 5. For that the assessee craves leave to add, alter or amend any ground before or at the time of hearing. 4. The assessee has raised following grounds in ITA No.2284/Kol/2017:- 1. For that the order o the Ld. CIT(Exemption) is arbitrary, and is not in accordance with law. 2. For that the order of the Ld. Commissioner of Income Tax (Exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of section 12AA(1)(a) of the Act. Therefore the ld. CIT(E) declined to grant registration u/s 12A of the Act. 7. Similarly, the application for approval u/s 80G(5)(vi) was also denied on the same date in consequence of rejection of the application in Form No. 10A for registration u/s 80G of the Act. The ld. CIT(E) in rejection the aforesaid application has relied on the judgment of Hon ble Kerala High Court in the case of Self Employers Service Society Vs. CIT [2001] reported in 247 ITR 18 [2000] 113 taxman 703(Ker). Being aggrieved by the order of Ld CIT(Ex), assessee is in appeal before us. 8. Before us, Ld. Counsel for the assessee stated that the powers of ld. CIT(Ex) in connection with the registration appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already been observed that objects of trust, which are religious, are charitable in nature. Thus, assessee also fulfils such condition. The carrying of charitable activity at the stage of commencement of institution is not relevant to decide that whether such trust/ institution is entitled for registration. So long the objects of the trust are charitable in nature, registration cannot be refused, if the trust is genuine. Therefore, we find no material on record to justify the action of the CIT vide which the assessee trust has been refused for grant of registration. We direct CIT to grant registration to the CIT (sic-assessee-trust). The appeal filed by the assessee is allowed. [Emphasis supplied] While deciding the appeal in the above cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case. The facts in the case on hand are not in dispute therefore we are inclined not to repeat the same for the sake of brevity. The undisputed fact is that the objects of the trust have not been doubted by the learned CIT(Ex). The allegation of the ld CIT(Ex) is that the trust has not started any activity and therefore it was not possible for him to satisfy about the objects and genuineness of activities before granting the registration in pursuance to the provisions of section 12AA of the Act. The law is now wellsettled that if the activities of the trust are at the commencement stage then the Ld CIT(Ex) cannot refuse the registration u/s 12AA of the Act without finding out any defect in the objects of the trust. The powers of Ld.CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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