TMI Blog2017 (8) TMI 1689X X X X Extracts X X X X X X X X Extracts X X X X ..... ty cannot come to the conclusion that the intent contained in the objects of the trust do not find corroboration in the shape of any positive action taken towards either education or any of the other objects enunciated in the trust deed , as observed by the ld.CIT (E ) . Third reason that the activities of assessee trust are controlled by one family is only an apprehension of the Ld. CIT (E ) which according to our mind can not base rejection of the registration because the Revenue Authority is at liberty to withdraw and/or to cancel the Registration an any time on the specified reasons enumerated in the Act. As from the documents filed before us, it reflects that the assessee trust has already purchased the land which is 9 kanals 19 marlas situated at Village Balian, Teshil Udhampur, and further also got approved sanctioned plan for construction of school from the concerned Executive Engineer of the area , no objection for construction from the concerned Panchayat and construction of School is at advance stage and also executed Memorandum of Understanding with the Bhartiya Shiksha Samiti, which is involved in the field of imparting formal education having established a numbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16. 2. The assessee has raised the following grounds of appeal : 1. That having regard to the facts and circumstances of the case, the Id CIT, Exemption Chandigarh has erred both in law and on facts of the case by rejecting registration u/s 12AA of the Act to the appellant trust. 2. That having regard to the facts and circumstances of the case, the Id CIT, Exemption Chandigarh has erred both in law and on facts of the case by denying the registration on the ground that the assessee trust has not carried out any activity. 3. That having regard to the facts and circumstances of the case, the Id CIT, Exemption Chandigarh has erred both in law and on facts of the case by denying the registration on the ground that the assessee trust has initially decided to construct school meditation hall at Asar Doda but later purchased land for school at Niabhat, Nagrota. 4. That having regard to the facts and circumstances of the case, the Id CIT, Exemption Chandigarh has erred both in law and on facts of the case by denying the exemption on the ground that the activities of assessee trust are controlled by one family. 5. That the appellant craves to leave to add, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... research oriented work, and uplifting of the unprivileged and economically socially weaker sections of the society and for that assessee trust has already acquired the land which had been shown to the Ld. CIT(E) and thereafter, the construction have been started and the building is under advance stage of the completion, therefore, the assessee is right to get registration U/s 12A of the Act. 5. On the contrary, the Ld. DR submitted that the order passed by the Ld. CIT(E) is a logical, reasoned and legal order and does not requires to be interfered with because the Ld. CIT(E) has taken into consideration the facts and circumstances of the case because until date of the impugned order as no activity was carried out in order to execute the objects of the trust, therefore, the Ld. CIT(E) was not having any option but to deny the registration. 6. We have gone through with the facts and circumstances of the case and also rival submissions of the parties, relevant dates are very much material in the instant case. The trust was established and registered only on 12th March, 2015 and thereafter, application for registration u/s 12A was filed on 29.04.2015 and main objects of the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 16.08.2012 dealt with the same situation and observed as under: That the concern CIT is not required to examine the question whether the Trust has actually commenced and has, in fact, carried on charitable activities ? Gujrat High Court in the case of CIT -1, vs. Kutchi Dasa Oswal Moto Pariwar Ambama Trust (2014 271 CTR 0595 was pleased to held that While considering the application u/s 12AA, the Commissioner has to satisfy himself about the objectives of the trust and genuineness of its activities and for such purposes, he has the power to call for such documents or information from the trust as he think are necessary. However, this does not mean that if the activities of the trust have not commenced the Commissioner has authority to reject its application for registration on the ground that the Trust has failed to convince him about the genuineness of the activities. That is what unfortunately the Commissioner did in the preset case . Further, Allahabad High Court in the case of Hardayal Charitable Educational Trust Vs. Commissioner of Income Tax-II, Agra decided on 15 March, 2013 observed that: The preponderance of the judicial opinion of High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld.CIT (E ) . Third reason that the activities of assessee trust are controlled by one family is only an apprehension of the Ld. CIT (E ) , which according to our mind can not base rejection of the registration because the Revenue Authority is at liberty to withdraw and/or to cancel the Registration an any time on the specified reasons enumerated in the Act. Further from the documents filed before us, it reflects that the assessee trust has already purchased the land which is 9 kanals 19 marlas situated at Village Balian, Teshil Udhampur, and further also got approved sanctioned plan for construction of school from the concerned Executive Engineer of the area , no objection for construction from the concerned Panchayat and construction of School is at advance stage and also executed Memorandum of Understanding with the Bhartiya Shiksha Samiti, which is involved in the field of imparting formal education having established a number of Primary and Secondary level Schools in different part of Jammu Kashmir as submitted. Further from the cutting of newspapers, it reflects that inauguration for construction and laying stone for establishment of the School has already been do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udication of Application , hence we are not taking into consideration the said documents and facts , however in overall consideration of the judicial interpretation , peculiar facts and circumstances and situation, in our considered opinion the Ld. CIT(A) was under obligation to consider the objects of the trust which are available in the trust deed itself. Even otherwise, the concerned Revenue Authority was empowered to withdraw the registration already granted or cancel the said registration if he came across that factually trust has not conducted any charitable activities. Although, in the open Court we had shown our inclination to remand the case with direction to the assessee to approach the Ld. CIT(E) with the documents as submitted before this forum because the documents were not available before the CIT(E), however, considering the principles laid down by the various Courts as it is not in controversy that till the adjudication of application u/s 12AA of the Act, the trust was at nascent stage and all the activities which are reflecting from the documents submitted herein are of the later stage, however, in our considered opinion at the time of disposal of application, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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