2010 (8) TMI 92

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.... 907/Chd/2008, proposing to raise following substantial question of law:- "Whether on the facts and circumstances of the case the ITAT was justified in directing the Commissioner of Income tax to grant registration to the assessee despite the fact that there is no application of funds towards charitable purpose by the assessee?" 2. The assessee has been created under the Building & Other Construction Works (Regulation of Employment & Condition of Service) Act, 1996. It applied under Section 12AA for registration as Charitable Institution to the Commissioner of Income Tax. The Commissioner rejected the application on the ground that the assessee did not receive any voluntary contribution but only received statutory cess and it did not ....

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....l audit of accounts of the Board Govt. in accordance with the provisions of the Act. g)         Collection of contribution of the Fund and other charges. h)         Launching of prosecutions for and on behalf of the Board. i)          Speedy settlement of claim and sanction of advances and other benefits. j)          Proper and timely recovery of any amount due to the Board. The objects and the purposes for which the Board was constituted are broadly mentioned hereunder:- i)          To regulate the employment c....

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.... justified. 5. We are unable to accept the submission. Requirements for registration are laid down under Section 12AA(1)(b), i.e. satisfaction as to objects of the trust or the institution and genuineness of its activities.  The Commissioner has not given any valid reason for not being satisfied about the objects of the trust and genuineness of its activities. It only stated that the assessee was not receiving voluntary contributions and had not done any charitable activity during the year. The Tribunal has given valid reasons for holding that the objects and activities of the assessee to be genuine. The assessee was a statutory body constituted for advancing welfare of workers employed in construction activity which is an object of....