TaxTMI 
TaxTMI 
2011 (12) TMI 12
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....27.1.2011. Such explanation was tobe submitted by 21.2.2011. On 21^st February, 2011, the Chartered Accountant of the assessee appeared before the Ld. DIT and took adjournment. According to the Ld. DIT, number of adjournments were taken by the assessee and it failed to submit the details. Whereas case of the assessee is that it has submitted all the requisite details called for by the Ld. DIT namely, it has submitted copy of trust deed, note on registration u/s 12AA and 80G, note on activity of the trust, copy of provisional balance sheet, income and expenditure account as on 31st March, 2011, details of donees and details of aids given. The Ld. DIT has rejected the application of assessee by brief order which include the details called for and the finding recorded by the Ld. DIT, which read as under :- 1. "Please file the undertaking that there shall be no infringement to the proviso to the section 2 (15) of the IT Act. 2. Please insert a provision relating to the dissolution of the trust/society providing inter alia that in the event of dissolution for funds/assets will be transferred only to some other trust having similar objectives. 3. Copy of accounts of the period s....
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....infrastructures and expertise on the part of people associated with it is found missing in this case. It has not disclosed the method of attaining the said objects. The applicant has submitted that it will take up some time to start its activities. It also stated that ground level activities like lie up (i) with hospital & medicals Institute (ii) NGOS and other charitable Institutes for cancer and (iii) spreading awareness is being performed but no concrete evidence has been furnished in its support. Therefore, in view of the above facts the trust is held to be not genuine with respect to its aims and objects. 4. The provisions of section 12AA stipulate the following conditions for registration u/s 12A of the I.T. Act, 1961 :- (i) The objects of the society should be charitable in nature; (ii) The activities of the society should be genuine. Therefore, one of the conditions for granting registration u/s 12AA is also not satisfied. 5. Since the applicant has failed to establish its genuineness as discussed in the preceding paras in the light of the amended provisions of the Act the application filed for registration cannot be considered favourably. Accordingly, the ap....
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....o start the activities then in the absence of registration the receipt would be taxable. Because benefit of 11 & 12 will not be there, but if an assessee applied for grant of registration u/s 12A, then Ld. Revenue Authority would emphasis first start the activities, demonstrate how the activities are genuine and of charitable nature. He relied upon the decision of Hon'ble Karnataka High Court in the case of DIT vs. Garden City Educational Trust reported in and submitted that Hon'ble Court has observed that registration u/s 12A is one of the procedural aspect for claiming benefit u/s 11& 12 of the Income Tax Act. The issues whether assessee would earn income, it will apply its income for the purpose of its activity or not are relevant while assessing the income of the assessee. For registration U/s 12A, Ld. Commissioner is required to look into prime facie about the genuineness of the activities of the assessee. The activities reported in the aims and objects should be in accordance with law. They should not for the purpose of carrying out any illegal activities. He preyed that aims and objects of the assesse are of charitable nature. Therefore, registration u/s 12A should be grante....
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....ation of cancer. One of the beneficiary is Mrs. Sushma Chaudhary, B-86, Nand Gram, Sarkari Colony, Ghaziabad and other one is Mr. Murli Dhar, H. No. 190 Noida, UP. They indicate that whatever little means that assessee has, it is performing its work in the direction of its aims and objects. Therefore, on an analysis of all these details, we are of the view that for the purpose of granting registration u/s 12A, Ld. DIT has to form a prima facie opinion as suggested by the Hon'ble Karnataka High Court. The Hon'ble Karnataka High Court has again considered this aspect in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust vs. DIT reported in 285 ITR 327. The aims and objects of the assessee are prime facie charitable in nature. Therefore, it deserves a registration u/s 12A, we direct the Ld. DIT to grant registration admissible as per rules. Now we take ITA No. 3862/D/2011 6. Ld. DIT has made reference of his order passed u/s 12AA (1)(b) of the Income Tax Act. Whereby he refused registration to the assessee u/s 12A. He made a reference to the decision of Hon'ble Kerala High Court rendered in the case of Self Employers Service Society vs. CIT reported in 247 ITR page 18. On....