TMI Blog2021 (12) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... ety. We direct Ld. CIT(E) to grant registration u/s.12AA of Income Tax Act to the applicant within 60 days from the receipt of this order. - Decided in favour of assessee. - I.T.A. No. 142/Asr/2020 - - - Dated:- 10-12-2021 - Mahavir Prasad , Member ( J ) And Dr. M. L. Meena , Member ( A ) For the Appellant : Sudhir Sehgal , A. R. For the Respondents : Abha Rani Singh , CIT / DR ORDER Per Mahavir Prasad , JM 1. This appeal filed by the Assessee is directed against the order of the Ld. CIT(E) vide order dated 27/02/2020 for A.Y. 2019-20. Assessee has taken following grounds of appeal: 1. That the Worthy CIT (Exemptions), Chandigarh has erred in denying the registration to the charitable Trust u/s. 12AA of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before 26.04.2020 but applicant filed appeal on 24.03.2020. The delay is covered by the Hon'ble Supreme Court of India order in Miscellaneous Application No. 665 of 2021 in SMW(C) No. 3 of 2020 for grant of extension of limitation. Therefore, respecting the aforesaid Apex Court order, we condone the delay and proceed with the appeal on merit. 3. In this case, applicant filed an application for grant of registration u/s. 12AA of Income Tax Act on 21.08.2019. The Ld. CIT(E) did not grant registration u/s. 12AA for the reason that the trust was started on 03.03.2015 and it has diverted the receipts amounting to ₹ 1,20,000/- and ₹ 6,00,000/- during financial year 2015-16 and 2016-17 respectively to the balance sheet which, ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad accrued to be paid or whether such taxes have been paid or not are to be looked into at the stage of assessment proceedings. 6.1 The Hon'ble Allahabad High Court in the case of Fifth Generation Education Society Vs. CIT (1990) 185 ITR 634 (All) has held that the Commissioner is not to examine the application of income at the stage of application made by assessee for granting registration u/s. 12AA of the Act. The Commissioner may examine whether the application was made in accordance with the requirements of Section 12AA r.w.r. 17A and whether Form 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not. At that stage, it is not proper to examine the application of income. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aritable Trust (2019) 267 TAXMAN 0016 (Bombay) 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. Thus, whether taxes are due to be paid on any income received that issue has to be looked into only at the time of assessment proceeding. 8. The Hon'ble Supreme Court in the case of Anand Social and Educational Trust Vs. CIT, 272 Taxman 7 (SC) has held that even in the absence of any activities a trust can be considered for registration u/s. 12AA of the Act and the term 'activities' contemplated u/s. 12AA of the Act includes 'proposed activities'. At the time of granting registration, the only issue to be examined by the Ld. CIT(Exemption) i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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