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TMI Blog2022 (12) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... such, the order passed is bad in law and the same is liable to be cancelled. 3. That the Ld. CIT(E) failed to appreciate that this trust was created for charitable purpose only and as such the order passed by the Ld. CIT(E) therein refusing to grant the registration is liable to be cancelled. 4. That the Ld. CIT(E) failed to appreciate that at the time of granting the registration, the worthy CIT(E) has to examine the only objects & genuineness of activities of the trust. It is submitted that genuineness of the trust and the activities of the trust are not doubted and as such the registration should have been granted. 5. That merely on the basis of conjectures, surmises and suppositions the registration u/s. 12AA cannot be rejected. 6. That it is prayed that the CIT(E) Chandigarh may be directed to allow the registration as claimed by the trust especially when all the formalities were completed and there was no reason and occasion for denying the registration. As such the registration claimed may be allowed. 7. Any other ground of appeal which may be urged at the time of hearing of the appeal." 3. The appellant assessee trust filed an application for registration under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence, in case the ownership can't be established, whether the same have become public property and whether there is a permission/go-ahead from the J & K state government since alienation of land rights and ownership is guided by special provisions endemic to the state and its special status. In view of the above, the activities of the applicant trust cannot be termed to fall under the category of "charitable purpose" and rejected the application of the appellant Trust. 5. The Ld. Counsel for the assessee submitted that the order passed by the Commissioner of Income Tax (Exemptions), Chandigarh, u/s. 12AA(1)(b)(ii) of the IT Act, 1961, therein refusing to grant the registration is against the facts on record as the trust was created for charitable purpose only and that the Ld. CIT(Exemption) failed to appreciate that at the time of granting the registration, he has to examine the only objects and genuineness of activities of the trust and that the worthy CIT(Exemption) has not doubted the objective and genuineness of activities of the trust and mere conjectures, surmises and suspicion about the activities of the trust being doubted is not sufficient to refuse the registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Relief-The Trust has spent Rs. 1,89,959/- for Medical Relief to patients of cancer, operation of brain and other illness. iii) Advancement of any other general public utility-The Trust has paid donations of Rs. 18,32,285/- to various Masjid for the welfare and usefulness of the General Public. c. The Trust has also constructed various Masjids at Various places for the welfare and usefulness of the general public and spent on construction works as under:- Particulars Amount i) Gundi Masjid, Tehsil Haveli, Poonch. 2,11,050/- ii) Jamia Masjid Sharief Guntrian, Tehsil Haveli, Poonch. 90,600/- iii) Mia Wazirni Ziarat, Allapur, Poonch. 54,804/- iv) Masjid Sharief, Houndi Shahpur, Poonch. 1,06,635/- v) Masjid Sharief Takia, Bandi Chechian, Tehsil Haveli, Poonch. 24,19,781/- Total 28,82,870/- d. The Trust has also made addition to the undernoted Ziarats for the Welfare and usefulness of the general public and spent on construction work as under:- Particulars Amount i) Ziarat Sharief Guntrian, Tehsil Haveli, Poonch 32,46,170/- ii) Ziarat Sharief Takia, Bandi Chechian, Tehsil Haveli, Poonch 41,15,140/- Total 73,61,310/- It is apparent from the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tudies, sports and scientific research, distribution of books and note books for poor and deserving students, establishment, conduct, maintenance of clinical laboratories, hospitals, nursing homes, dispensaries and institutions of similar nature and providing financial assistance to the deserving persons for medical treatment, in any medical institution, providing financial assistance for performing and feeding the poor directly and through other institutions, providing for or contributing to education and scientific research and development etc. 9. The learned AR argued that the necessary details of total receipts of donations by way of cheque in cash book filed before the assessing officer for verification, (APB page 6). The AR argued that the assessee trust is not engaged in any business or trading activity. It is therefore irrelevant doubt the mode of receipt of donations during the period of demonetization from the outsiders, being in conformity to the practice year to year. The learned AR further submitted that the details of the amount spent on construction having been furnished in the regular course before the authorities below; that multiple charitable activities are bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tegorically recorded by the Tribunal that the Commissioner (Exemptions) has to satisfy two conditions while granting registration under section 12AA. Firstly, whether the objects of the assessee are charitable in nature and, thus, the activities are genuine. It cannot be concluded on the basis that the assessee has not filed its income tax returns in earlier years that the activities of the assessee are not genuine. It has been further recorded that section 13 comes into play at the time of granting exemption under section 11 and not at the time of granting registration under section 12AA. No adverse remarks have been recorded by the Commissioner (Exemptions) with regard to the objects contained in the memorandum of the assessee-trust to come to the conclusion that its activities are not genuine. Thus, it has been rightly directed by the Tribunal to the Commissioner (Exemptions) to grant registration under section 12AA. [Para 4] 12. The Hon'ble Apex court in the case of 'Ananda Social & Educational Trust v. CIT', (Supra) held as follows: Section 12AA undoubtedly requires the Commissioner to satisfy himself about the objects of the trust or institution and genuineness ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is well settled law that where the purpose of a Trust is help to poor, medical relief, and advancement of objects of general public benefit/utility at large, the requirement of definition of 'charitable purpose' would be satisfied even if an activity of profit is carried on in the course of actual carrying out of the primary purpose of the Trust or the Institution. If a Trust's claim for charitable purpose is covered under the head of 'advancement of any other object of general public utility'. The question would arise whether the purpose of Trust or Institution involves the carrying on of any activity of profit. However, it would not be relevant as in the present case of the assessee Trust where the objects of the Trust comprise of relief of the poor, education or medical relief, etc. 14. We understand that the Section 12A of the Act provides for procedure for registration. The Commissioner of Income-tax is required to satisfy himself about the objects of the Trust and genuineness of its activities and has to grant registration only if it is so satisfied. The scope of examination is confined in ascertaining whether the Trust is constituted genuinely for ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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