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TMI Blog2021 (8) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim of registration u/s. 12AA of the Income Tax Act, 1961 to the appellant. 2. That the Ld. Commissioner of Income Tax (Exemptions), Chandigarh was not justified, while denying the grant of registration, to hold that the genuineness of the activities of the society could not be verified." 2. The CIT(E) while rejecting registration for the applicant trust, had observed as under: 7. The applicant could not submit any plausible response for the purpose of construction of building. In absence of any evidence, it is impossible to ascertain that the building under construction is being constructed to carry out educational activities or not. The claims of the applicant that the constructed building will be used for benefit of poor and ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onducted. This response, again, proves the point that the applicant trust has nothing concrete on the ground to put forward in its responses and making empty claims. 9. The applicant, in its reply dated 25.07.2017 has stated that "It is settled law that the scope of the power of the Commissioner is limited to being satisfied about the objects and its genuineness while granting registration". While this may be relevant for newly created entities the same can't be the yardstick for applicants that have been in existence for nearly a decade. In the instant case, neither has any evidence been produced for undertaking any activity as mentioned in the trust deed even after a lapse of ten years nor has any evidence been produced in support o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject i.e., setting up of a school could not materialize. The appellant has started the construction of the building and spent a sun of Rs. 38.54 lakhs upto 31.03.2016 and Rs. 66.80 lakhs upto 31.03.2020. No doubt in answer to one of the queries made by the Ld. Assessing Officer, one of the trustees had commented that the trust intends to set up a creche and in my view that factor, the Ld. Commissioner of Income Tax (Exemption), Chandigarh to deny the claim of registration to the appellant trust was not justified. He submitted that for purposes of granting of registration, it is the objects which needs to be verified and the actual commencement of the activity is not that relevant at the stage of granting of registration. 4. The defendant L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad not proved its case whether the activities were being run in a charitable manner and the genuineness of the activities of the society cannot be verified and in absence of any concrete reply from the applicant the activities of the trust cannot be termed to fall within the realm of "charitable purpose". The reasons which prevailed with the Commissioner was that no evidence had been furnished to prove that there was any provision for free education for poor and that the building under construction was being constructed to carry out educational activities or not. The claims of the applicant that the constructed building will be used for benefit of poor and needy students by way of providing education does not hold ground in absence of cogen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(15), registration was denied. 9. Admittedly, the factum of the additional information being asked for was never denied by the assessee. In appeal, the assessee had only raised the issue as to whether the order of the Commissioner is arbitrary and unjustified and whether the activities of the trust did not qualify in the nature of charity. The Ld. Counsel that the additional information being asked for, as such, was never contravened. It was not contended that the information had been supplied but was not taken into consideration. 10. A perusal of section 12AA, (Supra) would go on to show that the Commissioner has to satisfy himself of the objects of the trust and the genuineness of the activities and after giving an opportunity of being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA by assessee society was rejected by Commissioner on ground that assessee had not proved its case whether activities were being ran in a charitable manner and that no fresh evidence had been furnished to prove that there was any provision for free subsidised education for poor and an element of public benefit - However, on appeal Tribunal directed to allow registration to assessee - Whether power of Commissioner to look into objects of society and genuineness of same could not be doubted when basis was of non-supply of information and as such it would be appropriate for Commissioner to undertake exercise afresh on basis of application which had been filed keeping in view material which could be produced by assessee. 13. Accordingly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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