TMI Blog2017 (2) TMI 1479X X X X Extracts X X X X X X X X Extracts X X X X ..... l purposes. - ITA No. 988/JP/2016 - - - Dated:- 23-2-2017 - SHRI KUL BHARAT SHRI VIKRAM SINGH YADAV, JJ. Appellant by : Shri Pramod Patni (CA) Respondent by : Smt. Pratima Kaushik (CIT) ORDER SHRI KUL BHARAT, J. The appeal filed by the assessee is directed against the order of ld. CIT (Exemptions), Jaipur dated 09 September, 2016. The assessee has raised the following grounds of appeal :- 1. The ld. Commissioner of Income Tax has grossly erred in fact as well as in law in Rejection the Application for Registration u/s. 12AA of Income Tax Act, 1961 of the appellant company: i. on the pretext of the appellant company not having carried out any charitable activities. ii. in holding that Registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the ITAT, Agra Bench reported at (2012) 25 Taxman.com 288/ (2012) 138 ITD 179 which is based on distinguishable facts not applicable to the company and at the same time not considering decision of various High Courts which have held that commencement of actual activities is not a condition precedent for grant of registration and what is actually required to be seen is whether the objects incorporated in trust deed are genuine for carrying out the charitable activities. 2.i. The learned Commissioner of Income Tax has erred I fact and in law in not following the judgment of the Jurisdiction High Court in the case of CIT v. Vijay Vargiya Vani Charitable Trust (2015) 58 taxmann.com 335/232Taxman 340/(2014)369 ITR 360 (Raj.) which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made by the assessee. 3.1. The ld. Counsel submitted that the assessee company is incorporated as a Company under section 8 of the Companies Act 2013 and is engaged in the charitable activities and it is not for earning any profit. He submitted that the decision of the Ld. CIT is contrary to the binding precedents wherein the Hon ble jurisdictional High Court rendered in the case of CIT vs. Vijay Vargiya Vani Charitable Trust, 369 ITR 360 has held as under : In our view, the Trust can move the application immediately at the time of formation then there is no prohibition under the Act seeking registration. In our view as observed earlier the only thing to be looked into at the time of granting of registration is that the object of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on has been allowed and leave has been granted to the Revenue. The Ld. Counsel for the assessee submitted that merely leave has been granted would not disturb the binding nature of the judgment of the jurisdictional High Court. 3.4. We have heard the rival contention, perused the material available record and gone through the orders of the lower authorities. There is no dispute with regard to the fact that the Ld. CIT has rejected the application on the basis that no activity has been carried out, therefore, genuineness of the same cannot be commented upon. We therefore, following the judgement of Hon ble Jurisdictional High Court rendered in the case of CIT vs Vijay Vargiya Vani Charitable Trust(Supra) set aside of the order the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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