Trust registration under Income-tax Act upheld where inquiry was confined to objects, genuineness, and no substantial question of law arose.

At the registration stage, the Commissioner's inquiry is limited to the trust's objects, the nature of the trust, and the genuineness of its activities; a merits-based examination of income application or alleged violations is reserved for assessment proceedings. The Tribunal's grant of registration was upheld because its findings rested on factual appreciation of the trust deed, objects, and surrounding circumstances, and no perversity was shown. In an appeal under section 260A of the Income-tax Act, 1961, interference lies only where a substantial question of law arises. No such question arose, so the order granting registration was sustained.

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Issues: Whether any substantial question of law arose from the Tribunal's order granting registration to the trust and whether the Commissioner was justified in refusing registration under the Income-tax Act, 1961.

Analysis: The Tribunal's conclusion was based on factual appreciation of the trust deed, its objects, and the surrounding circumstances. The Court held that, at the stage of registration, the Commissioner's enquiry is confined to the nature of the trust, its objects, and the genuineness of its activities, and not to a merits-based examination of income application or alleged violation of provisions that are matters for assessment. The Court also found no perversity in the Tribunal's factual findings and reiterated that an appeal under section 260A lies only on a substantial question of law.

Conclusion: The refusal to interfere was justified, as no substantial question of law arose and the Tribunal's order granting registration was sustained.

Ratio Decidendi: In an appeal under section 260A of the Income-tax Act, 1961, interference is warranted only where the factual findings are perverse or disclose a substantial question of law; at the registration stage, the Commissioner is concerned primarily with the trust's objects and genuineness, not with a full assessment of income application.

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