TaxTMI 
TaxTMI 
2005 (3) TMI 401
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....onditions as laid under s. 12A of the IT Act." 2. The assessee filed an application for registration under s. 12A of the IT Act. Copies of this application are placed at p. 5 of the assessee's paper book. As per this application, the trust was created on 1st Feb., 2001. A certified copy of the instrument under which the trust was created, was filed. A certified copy of the document evidencing the creation of the trust, was also filed. Copies of accounts of the trust, for the latest year, were also filed. Copies of audited accounts are at pp. 3 and 4 of the assessee's paper book. As per trust deed, the objects of the trust are charitable. These objects, as contained in the trust deed are: (a) To provide help to deserving persons in the form of stipend, scholarship, cost of books and necessary instruments, food and other necessary expenditure for receiving education and help them in their social uplifts and backwardness and donate money for the marriage of poor persons irrespective of caste, creed or religion. (b) To provide medical assistance to the poor, in the form of medical aid, cost of medicine, food, clothes, spectacles, etc. in India irrespective ....
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....out any charitable activity and none has been carried out. I, therefore, reject the application of the assessee." 4. Apropos ground No. 1, the allegation of the assessee is that the impugned order has been passed after the expiry of 6 months from the end of the month in which the application was filed. The application was filed on 29th Oct., 2001. 5. As per s. 12AA(2) of the Act, every order granting or refusing registration under cl. "b" of sub-s. (1) of s. 12AA shall be passed before the expiry of 6 months from the end of the month in which the application was received under cl. (a) of s. 12A. Therefore, the aforementioned provision lays down a mandatory period of limitation for deciding an application such as the one under consideration here. As per the section, such limitation is 6 months from the end of the month in which the application was received. In the present case, the application was filed on 29th Oct., 2001. Hence, the limitation available for passing the order was upto 30th April, 2002. The order under challenge is dt. 24th July, 2002. Hence, ipso facto, the order is belated and is barred by limitation. 6. Recently, the Bangalore Bench of the Tribunal in ....
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....rds the application under consideration before them. At the very moment of expiry of limitation, the application is deemed to have been accepted, in case no order thereon is passed by then. Hence, on this score, the assessee is successful. 8. We would like to consider the matter on merits also. The learned counsel for the assessee has argued that the learned CIT(A) has wrongly relied on the decision of Sole Trustee, Loka Shikshana Trust vs. CIT 1975 CTR (SC) 281 : (1975) 101 ITR 234 (SC). The contention is that in that case, the facts were different. We have seen the said judgment. In that case, the trustee carried on a business of printing. The question was whether the income of the trust, which at the relevant time, was publishing newspaper and journals, was exempt from tax under s. 11 r/w s. 2(15) of the IT Act, 1961. Clause 2(c) of the trust deed of that assessee provided as an object of the trust, supplying the Kannada speaking public with an organ or organs of educated public opinion and conducting journals in Kannada and other languages, for the dissemination of useful news and information and for the ventilation of public opinion on matters of general public utility. It ....
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.... Reliance has been placed on the decision of the Delhi Bench of the Tribunal in the case of Ashutosh Davar Trust vs. Director of IT (2002) 77 TTJ (Del) 976 : (2002) 123 Taxman 182 (De1)(Mag). On the other hand, the contention of the learned Departmental Representative has been, that s. 12AA(1)(a) is very clear. As per this provision, the CIT shall call for such documents or information from the trust as he thinks necessary, in order to satisfy himself about the genuineness of the activity of the trust and may also make such enquiry as he may deem necessary in this behalf. As per s. 12AA(1)(b), the CIT has to satisfy himself about both the objects of the trust and the genuineness of its activities. Therefore, the learned Departmental Representative contends that in the present case, the learned CIT(A) was correct in passing the impugned order, since no activity was carried out by the assessee. 10. At first glance, the arguments of learned Departmental Representative appear to be correct. However, when one goes a little deeper, the position is otherwise. The section takes care of situation where activities have been carried out by a trust, whereas it does not lay down anything neg....