TMI Blog2021 (3) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... was too early to give a finding with regard to the genuineness of the objects of the Trust for the reason that the activities were not commenced on the date of application. When the genuineness of the objects of the Trust were not questioned by the CIT and when the Trust was yet to commence its operation and when a subject matter of scrutiny by the CIT as contemplated under section 12 AA(3) of the Income Tax Act, the Revenue would not be justified in refusing the registration at the threshold. The said ratio was laid down in a judgment reported in CIT Vs. Arulmighu Sri Kamatchi Amman Trust [ 2012 (2) TMI 159 - MADRAS HIGH COURT ] Following the ratio laid down in the judgment, the Hon'ble Division Bench of this Court directed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Though several opportunities were given by the Commissioner of Income Tax (hereinafter referred to as 'CIT') to the assessee Trust, the assessee failed to establish the contention before the CIT. Hence the CIT, by order dated 08.12.2009, rejected the registration filed under Section 12 AA and approval under Section 80G(5) of the Income Tax Act, 1961 for the reason that the Trust is not genuine and they are not engaged in any charitable activities. Aggrieved over the order passed by the CIT, the assessee filed appeals before the Income Tax Appellate Tribunal and the Appellate Tribunal, by order dated 03.11.2010, directed the CIT to register the assessee Trust under Section 12AA of the Income Tax Act, 1961 finding that the Trust was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e one and is not engaged in any charitable activity? 4.It is not in dispute that the Trust was constituted on 09.02.2009 whereas they sought for registration and approval on 09.06.2009 under Section 12AA and 80G(5) of the Income Tax Act respectively. The CIT, while rejecting the registration and approval, found that it was too early to give a finding with regard to the genuineness of the objects of the Trust for the reason that the activities were not commenced on the date of application. In an unreported judgment in Commissioner of Income Tax, Chennai Vs. Indomer Ananthi Chandramohan Charitable Trust, Chennai dated 05.01.2015, made in Tax Case Appeal No.303 of 2012, the Hon'ble Division Bench of this Court held as follows: .. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the Trust. When such an authority is vested with the Commissioner to cancel the registration in the event of the Trust not being carried on in accordance with the objects of the Trust, we do not find any ground to say that merely on the date of the application, the assessee Trust had not commenced its activities, hence, registration could not be granted. it is not denied by the assessee that on the date of the application under Section 12AA, it was yet to commence its operation. But nevertheless the genuineness of the objects of the Trust were not questioned by the Commissioner. Considering the fact that the continuance of registration is further a subject matter of scrutiny by the Commissioner as contemplated under Section 12AA( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arity in the order passed by the Income Tax Appellate Tribunal. In such view of the matter, the appeal in T.C.A.No.401 of 2011 is liable to be dismissed. 6.The issue involved in T.C.A.No.402 of 2011 pertains to approval under Section 80G(5) of the Income Tax Act. The ratio laid down by the Hon'ble Division Bench in T.C.A.No.303 of 2012 (cited supra) also applies to the case of the assessee. The Income Tax Appellate Tribunal, after taking into consideration all these aspects, rightly directed the CIT to register the documents under Section 12AA of the Income Tax Act and also granted approval. Hence this appeal is also liable to be dismissed. 7.In view of the above, both the Tax Case Appeals stand dismissed. No costs. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
