TMI Blog2018 (3) TMI 1860X X X X Extracts X X X X X X X X Extracts X X X X ..... of the modus of the application of the funds of the Trust or an examination of the ethical background of its settlers is called for while considering an application for registration. The I.T.A.T. further held that stage for consideration of relevance of the object of the Trust and application of its fund arise at the time of assessment, when benefits are claimed by assessee in terms of Sections 11 and 12, 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 is a sham institution floated only to avail the benefits of exemption under the Act, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee preferred an appeal before the learned I.T.A.T. and the learned I.T.A.T. allowed the appeal No.126/Jodh/2017 vide order dated 22.05.2017 while giving finding without considering the legal issue and facts. 5. Learned counsel for the appellant, therefore, submitted that there is substantial question of law whether on the facts and circumstances of the case and in law the I.T.A.T. was right in allowing assessee's claim for registration under Section 12AA of the Act inspite of the fact that the assessee did not comply with the requirement as per Rule 17A of the Income Tax Rules, 1962. He further argued that the learned I.T.A.T. committed an error in holding that C.I.T. (E) was not supposed to enquire into the conduct of the charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was rejected. 6. Against the said order, an appeal was preferred before the I.T.A.T. and the learned I.T.A.T. while considering the objects (Annex.6) of the charitable Trust, held that as per Section 12A and 12AA of the Act what is intended thereby is only a registration simplicitor of the entity of a Trust, which is condition precedent for claiming of benefits under the other provisions of the Act regarding exemption of income, contribution etc. No examination of the modus of the application of the funds of the Trust or an examination of the ethical background of its settlers is called for while considering an application for registration. The I.T.A.T. further held that stage for consideration of relevance of the object of the Trust and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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