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TMI Blog2021 (1) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... (Exemption) has erred in rejecting registration to Trust u/s.12AA. Appellant prays for grant of registration. 2. Appellant prays to add, alter, amend, take additional grounds, submit additional evidence and /or during or pending proceeding." 2. The brief facts of the case are that the assessee trust made an online application in Form No.10A for approval of the Trust/Institution u/s.12AA of the Act on 11.11.2019 under the category of charitable trust/institution as per CBDT Notification No. S.O 2033 (E) dated 24.06.2020 read with provisions of The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, No. 2 of 2020 dated 31.03.2020. The assessee is registered under Bombay Public Trust Act, 1950 with registration Number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction that they shall form part of the corpus - is income of a charitable, religious or charitable cum religious trust. Hence, after taking donation under the head Building Fund" as income, if the applicant becomes liable to pay tax, then the registration u/s 12AA cannot be granted unless the tax is paid. 3.5. Registration u/s 12AA of the IT Act is pre-condition to claim exemption u/s 11(1)(d) of the IT Act as distinguished from the present case. Therefore, the applicant trust has escaped amount of donation from taxation by not showing amount of donation under the head "Building Fund" in the total income for the FY's 2016-17, 2017-18 and 2018-19. No proper explanation to explain the discrepancy is submitted. These facts of the case pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enial of grant of registration u/s.12AA of the Act to the assessee trust is because for the reason that whatever donations, the assessee trust has taken as "Building Fund", according to the Ld. CIT(Exemption), the relevant taxes have not been paid in relation to those donations received under the head "Building Fund", as income. The Ld. CIT(Exemption) further held that until and unless, taxes were paid, registration u/s.12AA cannot be granted to the assessee trust. 8. That further, the Department has not disputed the objects of the trust or genuineness of activities conducted by the assessee trust. In this scenario, it was observed by the Pune Bench of the Tribunal in the case of Kai Shri Mahadebrao Naykude Dnyanvikas Prabhodhini Trust Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the objects of the trust i.e. whether charitable or not. 11. In the present case, the objects of the trust are not doubted by the Department and they have also not disputed the charitable nature of the activities conducted by the assessee trust. In these two areas, in fact, there has been no examination/verification conducted by the Ld.CIT(Exemption). Meaning thereby, all the relevant records were submitted before the Revenue Authorities and they have verified the same and were satisfied on this aspect. 12. Further, the Hon'ble Bombay High Court in the case of CIT Vs. Manekji Mota Charitable Trust (supra.) has held "at the time of the registration of the trust u/s.12A, the question of application of income of the trust is premature." Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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