TMI Blog2018 (11) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... e with the application u/s 12A of the Act. The order passed by the Ld CIT is therefore, quashed with a further direction upon him to allow such registration u/s 12AA of the Act. - Decided in favour of assessee - I.T.A. No. 261/RJT/2015 - - - Dated:- 16-11-2018 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND Ms. MADHUMITA ROY, JUDICIAL MEMBER For The Appellant : Shri Chetan Agarwal, A.R. For The Respondent : Shri Jitendra Kumar, CIT-D.R. ORDER PER Ms. MADHUMITA ROY - JM: The instant appeal has been filed before us by the assessee against the order of rejection of the application for registration u/s12AA by the Commissioner of Income Tax-II, Rajkot. An application for condonation of delay in preferring the instant appeal has also been filed by the Representative of the assessee on 05.06.2015 by which reasonable cause has been shown for such delay. We have gone through the same and are satisfied on the reasons explained by the Representative of the assessee. Thus, the delay is condoned. 2. An application for registration u/s 12AA was filed by the assessee on 09.01.2014. Factually, the trust was established on 19.06.2013 with 26 objects mentioned i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s 12AA, the duties whereof vests upon the Assessing Officer on a year to year basis at the time of claiming exemptions u/s 11 of the Act. The Learned Representative of the assessee further relied upon the judgment passed by the Learned Tribunal, Delhi Bench in ITA No.309/Del/2016 on the same issue regarding grant of registration under section 12AA of the Act; needless to mention that the Learned Tribunal passed order in favour of the assessee. 4. On the other hand, Ld. Representative of the Department submitted that despite various opportunities given to the assessee to furnish particulars no assistance, whatsoever was provided by it before the authorities below. He, therefore, relies on the order impugned before us. 5. We have heard the Learned Counsel appearing for the parties we have perused the relevant materials available on record. The short point involved in this matter is that as to whether the appellant is entitled to get the grant of registration u/s 12AA of the Act in the present facts and circumstances of the case. This Trust is a registered society under the Society Registration Act, evidence whereof is also annexed to the record. It appears that the Saura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public or section of the public as distinguished from an individual or group of individuals would be an object of general public utility. In view thereof, promotion of sports and games is considered to be a charitable purpose within the meaning of section 2(15). Therefore, an association or institution engaged in the promotion of sports and games can claim exemption under section 11 of the Act, even if it is not approved under section 10(23) relationg to exemption from tax of sports associations and institutions having their objects as the promotion, control, regulation and, encouragement of specified sports and games. It appears that the object of the trust should be the principal consideration of the Ld CIT while granting registration. In fact, it is the duty of the Assessing Officer to examine the income on a year to year basis at the time of claiming exemptions u/s 11 of the Act of the Trust. It is not the duty of the Learned CIT to examine as to whether the income derived by the Trust is being spent for charitable purpose or that the Trust is earned profit while granting registration. While granting registration u/s 12A of the Act the genuineness of the Trust is require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the registration under Section 12A is a pre-condition for availing of the benefit under Sections 11 and 12. Section 11 provides for exemption of income which is applied for charitable purposes. Section 12 is in the nature of an explanation to Section 11. Before a person can claim the benefit of Section 11, or Section 12, as the case may be, he must obtain registration under Section 12A. The application for registration under Section 12A has to be made in Form No. 10A prescribed by Rule 17A before the expiry of one year from the date of creation of the trust or the establishment of the institution, whichever is later. It has to be made by the person in receipt of the income of the trust. 3. It is evident that, at this stage, the Commissioner is not to examine the application of income. All that he may examine is whether the application is made in accordance with the requirements of Section 12A read with Rule 17A and whether Form No. 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not. At this stage, it is not proper to examine the application of income. 4. The order impugned does not say that the objects of the society are not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D.P.R. Charitable Trust (supra) has observed as under :- 8. Sec. 12A of the Act prescribes conditions for registration of the trust whereas s. 12AA of the Act prescribes the procedure for registration. A careful reading of the relevant provisions would reveal that application for registration under s. 12A has to be made in Form No.10A prescribed by r. 17A before the expiry of one year from the date of creation of the trust or establishment of the institution whichever is later. The application has to be made by a person in receipt of income of the trust. Thus while dealing with the application for registration the CIT has to examine whether the application is made in accordance with s. 12A r/w r. 17A and whether Form No.10A has been properly filled up. He may also examine whether objects of the trust are charitable or not. Sec. 12AA nowhere provides that CIT while considering the application for registration is also required to examine whether the income derived by the trust is being spent for charitable purposes or the trust is earning profit. The language employed by the legislature in s. 12AA only requires that activities of the trust or institution must be genuine which shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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