TMI Blog2018 (7) TMI 1902X X X X Extracts X X X X X X X X Extracts X X X X ..... by implication, been accepted by the CIT(A) by his action in granting approval u/s 12A of the Act. We, therefore, set aside the order of the CIT(E) and remand the question of grant of approval u/s 80G(5)(vi) of the Act to the CIT(E) for fresh consideration in the light of the decisions referred to by the learned counsel for the assessee before us. The CIT(E) will afford opportunity of being heard to the assessee. - Appeal of the assessee allowed for statistical purposes. - ITA No.1077/Bang/2018 - - - Dated:- 20-7-2018 - SHRI N.V.VASUDEVAN, JUDICIAL MEMBER And SHRI A.K. GARODIA, ACCOUNTANT MEMBER For the Appellant : Shri Suresh Muthukrishnan, Advocate. For the Respondent : Shri C.H.Sundar Rao, CIT(DR) ORDER Per N.V.VA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in is that the CIT must be satisfied about genuineness of the activities of the institution applying for grant of registration. The CIT(E), Bengaluru was satisfied about existence of this condition and therefore, he granted registration u/s 12A of the Act. One of the conditions for grant of approval u/s 80G(5)(vi) of the Act is that the income of the institution should be exempt u/s 11 and 12 of the Act. Therefore by implication genuineness of the activities of the trust applying for approval is also a requirement for grant of approval u/s 80G(5)(vi). The CIT(E), Bengaluru, by granting approval u/s 12A of the Act was satisfied about genuineness of the activities of the trust. He could not take a contrary stand while examining the assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cords we note that the trust was formed on January 23, 2008, and within a period of nine months they had filed an application under section 12A for issuance of the registration claiming exemption. The fact that the corpus of the trust is nothing but the contribution of ₹ 1,000 by each of the trustees as corpus fund goes to show that the trustees were contributing the funds by themselves in a humble way and were intending to commence charitable activities. It is not even the case of the Revenue that by the time the application of the assessee came to be considered by them, the assessee had collected lots of donations for the activities of the trust. On the other hand, the grievance of the concerned authorities seems to be that there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for which it was formed will have to be examined to be satisfied about its genuineness and the activities of the trust cannot be the criterion, since it is yet to commence its activities. 11. In the present case, as we have already seen, the trust came into existence Deed of trust dated 13.11.2012 and the application for registration was made by the assessee on 19.11.2012. The objects of the trust having been, admittedly, for providing medical relief and therefore charitable within the meaning of section 2(15) of the Act. In such circumstances, registration cannot be refused to the assessee as that would be preventing the assessee from carrying out a charitable activity at the threshold. The other decisions relied upon by the Id. couns ..... X X X X Extracts X X X X X X X X Extracts X X X X
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