TMI Blog2019 (3) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... erred while recording his satisfaction in terms of Section 12AA(1)(a) of the Act. Burden is heavily on the assessee to prove that the objects of the trust are bona fide and there is bona fide charitable activity being done. It is true that the definition of “charitable purpose” as defined under Section 2(15) is an inclusive definition to qualify for a registration under Section 12AA of the Act. The Commissioner should be satisfied about the genuineness of the activities of the trust or the institution, and is entitled to make such an enquiry, as he deems necessary in this behalf. In the opinion of the Commissioner, the assessee did not satisfy the requirements. The proviso to Section 2(15) of the Act provides that advancement of any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal has been admitted, vide order dated 20.07.2011, on the following substantial questions of law:- (i) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in directing the Commissioner of Income Tax to grant registration to the applicant Trust under Section 12AA of the Income Tax Act on the ground that at the stage of consideration of the application for registration, the Commissioner of Income Tax should examine only the objects as stated in the trust deed and other matters should be examined only at the time of making regular assessment? (ii) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the applicant trust is enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, and we find the order to be a well reasoned order. The Commissioner has examined the objects of the trust, who are all the trustees, the lease deed, the construction put up, checked the tax which they impart, the fee they have collected from the students and after taken into consideration all the factual aspects, held that the activities of the trust are not charitable and the funds of the trust are not invested for any charitable purpose. If the Tribunal was of the view that the order passed by the Commissioner needs to be reversed, then the Tribunal requires to give a factual finding as to how the Commissioner erred in appreciating the materials placed before him and how the Commissioner erred while recording his satisfaction in ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity. Therefore, in our considered view, the Tribunal failed to properly examine the contentions advanced by the Revenue and by a non-speaking order, allowed the appeal filed by the assessee. Therefore, we are of the considered view that the matter requires to be re-considered by the Tribunal. 9.The learned counsel for the respondent/assessee relied upon Circular No.14/2015, dated 17.08.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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