Trusts Granted Registration on Appeal Due to Lack of Evidence Supporting Concerns

The Tribunal allowed the appeals of both assessees in ITA Nos. 617 & 618(Asr)/2011, directing the Commissioner to grant registration to the trusts. The decisions were based on finding no evidence to support concerns regarding the genuineness of the trust's activities or the excessive fees structure, leading to the allowance of both appeals.

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Issues Involved:
Two appeals from different assessees challenging orders of Commissioner of Income-tax under section 12AA(b)(ii) of the Income Tax Act, 1961.

Detailed Analysis:

Issue 1: Refusal of Registration
The appeals challenge the refusal of registration under section 12AA(b)(ii) of the Income Tax Act, 1961. The assessees argue that the orders refusing registration are illegal, invalid, and void ab-initio. They contend that no reasonable opportunity of being heard was allowed before the refusal, and the conditions laid down under the law were duly fulfilled for registration.

Issue 2: Excess Income Over Expenditure
In the case of D.N. Memorial Trust, the Commissioner observed an excess of income over expenditure exceeding 15% for the first year. The Commissioner applied section 12AA(1)(b)(ii) due to the surplus generated by the trust not aligning with the intent of charitable provisions. The trust argued that all income was applied for charitable purposes, citing relevant case law to support their position.

Issue 3: Genuineness of Activities
The genuineness of the trust's activities was questioned by the Commissioner, who raised concerns about the trust's profit-making intent under the guise of a charitable institution. The trust defended its activities, emphasizing that funds were utilized for educational purposes and no adverse material was presented to reject their application.

Decision
After considering the arguments and facts, the Tribunal found no evidence to support the Commissioner's concerns regarding the genuineness of the trust's activities or the excessive fees structure. The Tribunal directed the Commissioner to grant registration to both assessees, as applied for. The decisions in both appeals were based on identical issues and grounds, leading to the allowance of both appeals.

In conclusion, the Tribunal allowed the appeals of both assessees in ITA Nos. 617 & 618(Asr)/2011, directing the Commissioner to grant registration to the trusts.

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