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TMI Blog2019 (12) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... company incorporated under the Companies Act, 2013. The main objectives of the assessee was establishing and running educational institutions, hospitals and sanatoriums, etc. The assessee was incorporated on 21.11.2017. It made an application for grant of approval u/s. 80G of the Act on 3.1.2018. Even prior to this, the assessee has made an application for grant of registration u/s. 12A of the Act on 8.2.2017. The CIT(E) by his order dated 17.5.2018 granted registration to the assessee as an organization which has, as its objects, activities which are charitable in nature within the meaning of section 2(15) of the Act. 3. Insofar as the application of assessee for grant of approval u/s. 80G of the Act is concerned, the CIT(E) by his lette ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anization to demonstrate the actual carrying of its activities. The Tribunal placed reliance on the decision of the Hon'ble Karnataka High Court in the case of DIT(E) v. Meenakshi Amma Endowment Trust, 354 ITR 219 (Kar) and came to the conclusion that for want of proof of activities of a trust, when the trust was yet to commence its activities, an application for grant of registration u/s.12A cannot be rejected. The Tribunal also placed reliance on the decision of ITAT Jaipur Bench in the case of Anand Incubation Centre v. CIT(E), 86 taxmann.com 250 (Jaipur Trib) wherein on identical facts, approval u/s. 80G was directed to be granted. The following were the relevant observations of the Tribunal:- "6. We have heard the rival contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mobilize the resources and there may not be an occasion for the assessee trust to demonstrate the actual carrying on of its activities at the time of moving the application. Therefore, the question of genuineness of such activities and examination thereof by the learned CIT(E) is premature to our mind at the time of grant of approval. In our view, the object of grant of recognition under section 80G of the Act is to promote charitable activities and to mobilize resources which can be generated by the assessee trust from the potential donors as well as public at large. Therefore, denial of recognition under section 80G merely for the fact that the activities have not been carried out by the assessee trust and thus cannot be verified is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s 12A within span of 8 month after its formation, objects of the trust have to be examined and the authorities cannot insist on proof of activities of the trust as trust was yet to commence its activities. ITAT, Bangalore Bench in the case of All People Charitable Trust Vs. CIT(E) in ITA Nos. 1216 and 1217/Bang/2015 order dated 30/12/2015 has applied the principles laid down in the case of Meenakshi Amma Endowment Trust Trust (Supra) in the context of grant of registration u/s 80G of the Act. In the present case the trust was formed on 14/12/2016 and application for grant of registration and approval u/s 12A and 80G respectively was made on 16/5/2017. Therefore the CIT(E) was not justified in basing his conclusion for rejecting approv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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