AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (1) TMI 673
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....80G(5)(vi) of the IT Act in the prescribed form. The ld. CIT issued summons to various donors of the society for verification of the donations above Rs.20,000/-, in which 10 summons were returned un-served. The ld. CIT after affording opportunity of being heard to the assessee and considering the material on record noticed following shortcomings, irregularities and effects : (i). The assessee has not filed audit report in proper format in form No. 10B for F.Y. 2011-12. (ii). In response to summons to the donors, replies have been received in 17 cases, which are not accompanied by any documentary evidence in respect of identity of the donors which was found essential for establishing genuineness of the persons who have donated the money. ....
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....educational only. He purchased the land for the purpose of construction of educational institution. The donations are received for the purpose of corpus. The donors have confirmed giving of donations to the assessee in their statement recorded u/s. 131 of the IT Act, which is supported by their PAN or identity proof. He has submitted that the assessee is at the stage of construction of educational building and has also applied to Dr. Bhim Rao Ambedkar University, Agra for affiliation and with the office of Higher Education, Agra, Aligarh. Letters of the same are filed in the paper book. The photographs showing construction activities are going on are also filed in the paper book along with list of donors. He has also submitted that DCIT(Jud....
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....ll applications, pending before the Chief Commissioner on which no order has been passed under clause (b) of sub-section (1) before the 1st day of June, 1999, shall stand transferred on that day to the Commissioner and the Commissioner may proceed with such applications under that sub-section from the stage at which they were on that day. (2) Every order granting or refusing registration under clause (b) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) of sub-section (1) of section 12A. (3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) or has obtained registration at any time....
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.... its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under section 12AA cannot be refused, on the ground that the trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this stage only the genuineness of the objects has to be tasted and not the activities, which have not commenced. The enquiry of the Commissioner of Income Tax at such preliminary stage should be restricted to genuineness of the objects and not the activities unless such activities have commenced. The Trust or society cannot claim exemption, unless it is registered under Section 12AA of the A....
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...." 6. Considering the above provisions in the light of decision of Hon'ble Allahabad High Court, it is clear that most of the objections raised by the ld. CIT in the impugned order are not relevant for the purpose of grant of registration u/s. 12AA of the IT Act and approval of exemption u/s. 80G(5) of the IT Act. Hon'ble Allahabad High Court in this case held that for grant of registration u/s. 12AA, The Commissioner of Income Tax is not required to look into the activities where such activities have not or in the process of its initiation. The objects of the Institution shall have to be seen. The issue of receipt of donations is not relevant. The registration could not have been refused on the ground that the trust has not yet commenced t....