Tribunal grants registration despite lack of charitable activities, emphasizing statutory provisions over waiting period.

The Tribunal set aside the rejection of applications for registration under section 12A and approval under section 80G by the Ld. CIT (Exemptions), Kolkata, in favor of the assessee. Relying on judicial precedents, the Tribunal granted registration to the assessee despite the absence of charitable activities, emphasizing statutory provisions over the requirement of a waiting period or activity. The decision, pronounced on 22nd September 2017, highlighted the significance of adhering to legal precedents and statutory regulations in such matters.

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Issues:
- Rejection of applications for registration under section 12A of the Act and approval under section 80G of the Act by the Ld. CIT (Exemptions), Kolkata.

Analysis:
1. Issue of Charitable Activities: The Ld. CIT (Exemptions) rejected the applications for registration under section 12A of the Act and approval under section 80G of the Act, citing the absence of proof of charitable activities by the assessee. Relying on the decision of Hon’ble Kerala High Court, it was held that a society or institution yet to commence charitable activities as defined in section 2(15) of the Act cannot be granted registration under section 12A. Consequently, approval under section 80G was also denied. The assessee challenged these rejections before the Tribunal.

2. Judicial Precedents: The assessee relied on the decision of the Hon’ble Delhi High Court in a similar case where the Tribunal directed the grant of registration under section 12A despite the absence of charitable activities, following the decision of the Hon’ble Allahabad High Court. The Hon’ble Delhi High Court, in that case, preferred the interpretation given by the Hon’ble Karnataka High Court, emphasizing that the statute does not impose a waiting period or activity requirement for registration under section 12A.

3. Tribunal's Decision: The Tribunal, after considering the arguments and precedents, found the issue to be covered in favor of the assessee by the decision of the Hon’ble Delhi High Court. Consequently, the impugned order of the Ld. CIT (Exemptions) was set aside, directing the grant of registration to the assessee under section 12A of the Act. Additionally, the Tribunal instructed the Ld. CIT (Exemptions) to provide approval to the assessee under section 80G of the Act.

4. Final Decision: The Tribunal allowed both appeals of the assessee, emphasizing the importance of following judicial precedents and statutory provisions in granting registration and approval for charitable trusts. The decision was pronounced in the open court on 22nd September 2017, providing relief to the assessee against the rejections by the Ld. CIT (Exemptions).

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