TaxTMI 
TaxTMI 
2014 (1) TMI 759
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....ed as is argued by both the parties. ITA No. 326/Agra/2013 (Shri Rati Ram Shiksha Samiti) : 2. The assessee society moved application for registration u/s. 12AA of the IT Act. The assessee was required to produce relevant details before the ld. CIT to prove genuineness of the activities of the assessee society. However, no compliance was made. Thereafter, the matter was adjourned to some other date and assessee was to file complete list of donors and bills of purchase. The assessee was also directed to produce all the donors. The Inspector reported in his report that he has gone to the donors and submitted the enquiry report, in which either some of the donors denied giving any donations to the assessee or were not traceable because of de....
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....ioner, on receipt of an application for registration of a trust or institution made under clause (a) or clause (aa) of sub-section (1) of section 12A, shall-- (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he-- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such....
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.... 5. The ingredients of above section clearly makes out that before grant of registration u/s. 12AA, the ld. CIT has to satisfy himself about the objects and genuineness of the activities of the assessee trust or institution. Other conditions are not relevant at the stage of grant of registration. The recognition u/s. 80G(5) is consequential to the grant of registration. Hon'ble jurisdictional Allahabad High Court in the case of Hardayal Charitable and Educational Trust vs. CIT-II, Agra (supra) held as under : "The preponderance of the judicial opinion of all the High Court including this Court is that at the time of registration under section 12AA of the Income Tax Act, which is necessary for claiming exemption under Section 11 & 12 of the....
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.... question of exemption of the application of income received by way of donation, is a separate issue and which may be required to be considered, when the return is filed by the Trust and is examined by the Income Tax Officer. The question as to whether the donations by the societies was the expenditure of the Trust for charitable and religious purposes will be examined at the time of examining the return. In the result the income tax appeal is allowed. All the three substantial questions of law formulated as above are decided in favour of the assessee, and against the revenue with a clarification that the registration under Section 12AA and approval under Section 80G would not by itself entitle the Trust for exemption of the income of its ....
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....ided. DCIT(Judl.), therefore, recommended grant of registration u/s. 12AA and approval of exemption u/s. 80G of the IT Act. The assessee purchased land for the purpose of construction of the building, details are mentioned in the audited balance sheet. Photograph shows that the society is at the stage of construction of the educational building. List of the donors are filed in the paper book and large number of donors have confirmed giving of donations to the assessee for the purpose of society which is supported by their identity proofs. The assessee also applied for grant of recognition for educational purpose with Dr. Bhim Rao Ambedkar University, Agra and with the office of higher education officer, Agra, Aligarh region, Agra. These evi....
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....se of Hardayal Charitable & Educational Trust (supra). The issue of donation is not relevant at the stage of grant of registration u/s. 12AA of the IT Act. Finding of the ld. CIT is, therefore, not in accordance with law and is liable to be set aside. By following the above decisions, we set aside the impugned order and restore the matter in issue to the file of ld. CIT with direction to re-decide the application for registration u/s. 12AA in accordance with law and the ld. CIT is directed to pass reasoned order satisfying himself about the aims and objects of the assessee society alongwith its genuineness. The ld. CIT shall give reasonable sufficient opportunity of being heard to the assessee. In the result, the appeal of the assesse is al....