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TMI Blog2018 (11) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax, for consideration. The main object of the trust is to control the game of cricket in Rajkot and to encourage and organize cricket tournaments including women's cricket. The objects of the assessee "Cricket for Rajkot District" are charitable within the meaning of Circular: No. 395 [F. No. 181(5) 82/I.T(A-I)] dated 24.09.1984 explained by the assessee. However, the same was rejected by the Learned CIT on several grounds upon which the instant appeal before us. The Learned CIT in the order noticed that the objects of the assessee appears to be overlapping the objects of Saurashtra Cricket Association. Further that the association intents to have overall control over the management of the Saurashtra Cricket Association and its functions. Further that the address of the association mentioned in the said application was fake. No charitable activity was found to be carried out from such place has also opined by the Learned CIT. The president of the assessee is also the president of Saurashtra Cricket Association and therefore the Learned CIT could not find any reason to form the new association as applied for. Last but not the least the Learned CIT(A) sought to justify the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned in their Trust deed. Therefore, question of controlling over the same by the assessee does not arise at all. The address mentioned in the application of the Trust is residential address of the managing trustee namely Shri Niranjan R. Shah and same is only for the managing activities of the Trust and is known as office. So far as, the submission made by the Learned Representative of the Department of not providing any assistance by the assessee is not correct in view of the letter submitted on 23.07.2014 enclosed at Page 34 & 35 of the Paper Book filed by the assessee before us. The explanation and/or clarification regarding charitable purpose of the Trust has duly been made by the assessee by and under the said letter dated 23.07.2014 before the Learned Commissioner of Income Tax - II, Rajkot. Further that we do not find any reason as to why one person being the president of the Saurashtra Cricket Association cannot be the managing trustee of another trust as found by the Learned Commissioner of Income Tax in the order impugned. No reasonable explanation in this regard has been provided in the said order. While dealing the aspect of commercial activities performed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und of settlers is not called for at the stage of granting registration by the authorities below. 6. In this regard, we have also gone through the judgment cited by the Learned Representative of the Assessee passed by the Learned Income Tax Appellate Tribunal; Delhi Bench the relevant portion whereof is as follows: "16. Now, coming to the powers of the Commissioner as to whether while granting registration u/s 12A he is required to examine the books of account etc. or he is only to satisfy himself regarding the objects of the trust and genuineness of the activities of the trust, we find various courts have held that while granting registration u/s 12A the ld. CIT is required to see only the objects of the assessee trust/society and not to examine the application of income. He is not required to examine whether the income derived by the trust is being spent for charitable purposes or the trust is earning profit while granting registration. He is only required to examine the objects of the trust. We find identical issue had come up before the Tribunal in the case of Bhartiya Kisan Sangh Sewa Niketan (supra). In the said case also the assessee trust did not produce the books of acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Commissioner has also observed that no activity has been carried on by the society. It is also not the requirement of Section 12A of the Act. Nor has Section 80Gany relevance at this stage. The impugned order cannot, therefore, be sustained and it is quashed." 18. We find the Hon'ble Karnataka High Court in the case of A.S. Kupparaji Brothers Charitable Foundation Trust (supra) has observed as under :- "The certificate of registration is only an enabling provision to claim exemption. By merely granting a certificate income is not exempted. That is only a first stage to claim exemption. The Commissioner of Appeals should not have confused these two aspects and seems to think as the trustees and his family members are treating the property as their own and misutilising the property it is not a genuine trust. When once it is admitted that in pursuance of the trust deed and in terms of the objects set out therein, schools and colleges are being run and educational institutions are being run as rightly held by the Tribunal, nothing more requires to be established to show that the trust in question is a genuine trust and therefore, the assessee is entitled to the registration un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y examine is whether the application is made in accordance with the requirements of s. 12A r/w r. 17A and whether Form No.10A has been properly filled up. He has also to see whether the objects of the trust are charitable or not. Our view funds support from the Division Bench decision of the Allahabad High Court rendered in the case of Red Rose School (supra) and the decisions in the case of New Life in Christ Evangelistic Association (supra), Fifth Generation Education Society (supra) and Shantagauri Ramniklal Trust (supra). 9. In the backdrop of aforesaid legal position facts of the case may be seen. Admittedly the application submitted by the respondent was in consonance with the procedural requirement prescribed in this regard. From the trust deed which was filed before the CIT the objects of the trust could be ascertained. From perusal of cl. (3) of the trust deed we find that the objects of the trust are charitable in nature and are in tune with s. 2(15) of the Act and, therefore, the Tribunal rightly opined that the order of the CIT rejecting the application under s. 12A was unjustified." 20. The various other decisions relied on by the ld. counsel for the assessee in the ..... 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