Charitable trust registration requires focus on objects and proposed activities, not mere non-commencement of operations.

Registration under section 12AB cannot be denied to a newly formed trust merely because full charitable activities have not yet commenced, where the objects are charitable and the proposed activities are consistent with those objects. The Commissioner must examine the trust's objects and the genuineness of its activities; for a new trust, proposed activities are relevant. A conference held by the trust did not, by itself, establish that it existed only for mutual benefit of members or that it had engaged in a specified violation. The denial of registration was therefore not sustainable, and registration under section 12AB was to be granted.

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Issues: Whether registration under section 12AB of the Income-tax Act, 1961 could be denied to a newly formed trust on the ground that its activities had not commenced and that its existing activity was confined to members and reflected mutuality rather than charity.

Analysis: For registration, the Commissioner must satisfy himself about the objects of the trust and the genuineness of its activities, and in the case of a new trust the proposed activities are relevant. Mere non-commencement of full-fledged charitable operations is not, by itself, a ground to treat the activities as non-genuine or as a specified violation, where the objects are charitable and the proposed line of activity is consistent with those objects. The trust deed showed charitable objects, including medical relief, education, and public awareness, and the conduct of a conference by itself did not justify a conclusion that the trust existed only for mutual benefit of members. The reasons recorded by the Commissioner did not establish that the trust had undertaken activities contrary to its objects or any specified violation under section 12A(1)(ac)(iii).

Conclusion: The denial of registration was not sustainable, and the assessee was entitled to registration under section 12AB.

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