TMI Blog2019 (6) TMI 1629X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, one can not expect from the trust to do activity of the charity immediately. As at the time of registration u/s 12AA of the Act, the Ld. CIT(E) is required to see the objects of the trust or institutions and genuineness of its activities, however, if we come to the instant case, then it is not disputed that the trust was formed and created only on 22.01.2015 and immediately within one year of its creation, the application for registration u/s 12AA of the Act has been filed on 30.11.2015 which has been rejected vide impugned order dated 26/05/2016 so it is not in controversy that the assessee trust at the time of applying the registration was at nascent stage, therefore, could not carry out any activity. Opinion at the time o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emptions), Chandigarh u/s 12AA of the I.T. Act, 1961 (hereinafter called as the Act ) , whereby the application of the assessee has been rejected while denying the registration u/s 12AA of the Act by observing as under: 4. The applicant was also intimated that in the absence of Balance Sheet, Income Expenditure, Receipts Payments accounts, it was difficult to verify genuineness a: nature of activities. The applicant was further asked to provide a rationale why registration should be granted in the absence of any apparent charitable activity being pursued. No one attended on the date fixed. Given the non-compliance on the several occasions afforded the assessee, it becomes evident that the applicant appears not interested in pursuing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. From the contents of the Sec.12AA, it encompass that the Ld. CIT(E) in order to satisfy himself about the genuineness of the activities of the trust or institution can call for such documents or information from the trust or institution as he thinks necessary and also empowered to make such enquiry as he may deem fit necessary in this behalf. Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Educational Trust Vs. Commissioner of Income Tax-II, Agra decided on 15 March, 2013 observed as under:- The preponderance of the judicial opinion of High Courts as well as ITAT is that at the time of registration u/s 12AA of the Act, the CIT is not required to look into the activities, where such activities have not or are in the process of its initiation. Where a trust, set up to achieve its objects of enabling educational institution, is in the process of establishing such institution and receives donations, the registration u/s 12AA cannot be refused, on the ground that the Trust has not yet commenced the charitable or religious activity . Co-ordination Bench of ITAT, Amritsar in the case of Ek Umeed Welfare Society, Faz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... controversy that the assessee trust at the time of applying the registration was at nascent stage, therefore, could not carry out any activity and according to aforesaid judgments it is clear that statute does not prescribe a waiting period for a newly registered trust to qualify itself for registration under Section 12AA of the act and wait till the activity commence. From the conjoint reading of the aforesaid judgments, it can be safely concluded that even otherwise if no activity was carried out by a trust or institution, still registration can be granted by the CIT(E) and even otherwise it is not the case of the Revenue that at the time of consideration of application of the Assessee, the assessee has carried out many activities and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed opinion as at the time of applying the registration the assessee trust has not carried out many activities and even otherwise it cannot be expected so at the nascent stage, therefore, the assessee trust is entitled to get registration u/s 12AA of the Act from the date of application, hence, we direct the Ld. CIT(E) to grant the registration u/s 12A of the Act to the assessee. It is clarified if the Assessee Trust does not qualify/satisfy the objects of the trust and/or involved in ingenuine activities and the Ld. CIT(E) found any discrepancy and/or noncompliance of any statutory provisions of law by the assessee trust in future then the Ld. CIT(Exemption) shall be at liberty to withdraw/cancel the registration u/s 12A of the Act. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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