TMI Blog2018 (4) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... ies of the trust were not genuine. As per provisions of section 12A and 12AA we hold that the grounds raised by the ld. CIT(E) (Registering Authority) for rejecting of registration to the assessee trust cannot be sustained and ld. CIT(Exemption) ought to have examined whether activities of the trust are charitable in nature or not - direct the ld. CIT(Exemption) to examine the genuineness of the Trust and its activities and objectives and adjudicate the issue in accordance with law - Decided in favour of assessee for statistical purposes. - ITA Nos. 2229 & 2230/ Kol/2017 - - - Dated:- 20-4-2018 - SHRI A. T. VARKEY, JM And DR. A.L.SAINI, AM Appellant by : None Respondent by :Shri P. K. Srihani, CIT(DR) ORDER Per Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns: (i).On perusal of application of assessee in Form 10A, the ld. CIT(Exemption) noted that a part of the donations received from the donors have not been routed through Income Expenditure Account but directly taken to the Balance Sheet. (ii).The donation received throughout the year have been deposited in Bank account during demonetization period amounting to more than ₹ 1,00,000/-, the assessee did not submit any reasonable explanation on this deposit during demonetization. Therefore, considering these reasons, the ld. CIT(Exemption) rejected the application for grant of registration u/s 12AA of the Act and denied approval under section 80G (5) (vi) of the Act. 6. Aggrieved by the order of the ld. CIT(Exemption), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age for consideration of the relevance of the object of the Trust and the application of its funds arises at the time of the assessment. Where benefits are claimed by the assessees in terms of section 11 12 of the Act, the question as to the nature of such contribution and income can be looked into. At the time of registration of the Trust, going by the binding judgments of the Apex Court, what is to be looked into is whether the Trust is a genuine one and whether it is a sham institution floated only to avail the benefits of exemption under the Act. For that, we rely on the judgment of the Hon ble High Court of Kerala in the case of Shee Anjaneya Medical Trust (2016) 382 ITR 399 (Kerala) wherein the same propositions were upheld by the H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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