Charitable registration limited to genuineness of trust and objects, enabling consequent tax-deduction registration for educational trusts.

Entitlement to charitable registration was considered for an educational trust: the registration-stage inquiry is confined to the genuineness of the trust and its objects, not to the year-to-year application of income, and documentary evidence of running educational institutions in accordance with trust objects satisfies that requirement; accordingly registration under the relevant charitable-registration provision should be granted and cancellation of provisional registration set aside. Because entitlement to tax-deductible status depends on valid charitable registration, the finding in favour of registration also satisfies the prerequisite for grant of tax-deduction registration, which is to be granted.

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Issues: (i) Whether the assessee is entitled to registration under section 12AB of the Income-tax Act, 1961 (including cancellation of provisional registration); (ii) Whether the assessee is entitled to registration under section 80G of the Income-tax Act, 1961.

Issue (i): Entitlement to registration under section 12AB of the Income-tax Act, 1961 (and cancellation of provisional registration).

Analysis: The assessee submitted documentary evidence and governmental approvals to establish the genuineness of its educational activities and objects. At the registration stage the enquiry is confined to the genuineness of the trust and its objects rather than examination of the application of income, which is within the assessing officer's year-to-year jurisdiction; relevant judicial precedents support that running educational institutions in accordance with trust objects satisfies the charitable object requirement under section 2(15). The assessing record shows provisional registration and documents demonstrating the conduct of school activities.

Conclusion: Registration under section 12AB of the Income-tax Act, 1961 is to be granted to the assessee; the cancellation of provisional registration is set aside in favour of the assessee.

Issue (ii): Entitlement to registration under section 80G of the Income-tax Act, 1961.

Analysis: The grant of registration under section 80G is contingent on the assessee having valid registration under the appropriate charitable registration provisions. Having found entitlement to registration under section 12AB, the prerequisite for 80G registration is satisfied and the documentation supports grant of 80G registration.

Conclusion: Registration under section 80G of the Income-tax Act, 1961 is to be granted to the assessee.

Final Conclusion: The appeals are allowed and the revenue authority is directed to grant registrations under section 12AB and section 80G, concluding the entitlement of the assessee to statutory registrations for charitable educational activities.

Ratio Decidendi: At the registration stage under the Income-tax Act, 1961, the authority's inquiry is limited to the genuineness of the trust and its objects; examination of application of income is reserved for assessment proceedings, and evidence of running educational institutions in accordance with the trust objects suffices for registration under section 12AB.

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