TaxTMI 
TaxTMI 
2014 (2) TMI 32
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....bstantial questions of law: "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that registration under Section 12AA can be granted to the trust with both charitable and religious objects on application of section 11(1)(a)? 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee trust is entitled for registration under Section 12AA when activities were not started by the trust?" 2. The respondent/assessee is a trust formed for carrying on charitable and religious activities. The assessee filed an application before the Director of Income Tax (Exemptions), Chennai under Section 12AA of the Income Tax Act, 1961. The Director of Income Tax ....
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....g for the Revenue reiterated the submissions made before the Tribunal and contended that the registration under Section 12AA of the Income Tax Act cannot be granted to a trust having both charitable and religious objects on an application under Section 11(1)(a) of the Income Tax Act. 6. The very issue raised by the Revenue has been dealt with by a Division Bench of this Curt in the case of CIT V. Arulmighu Sri Kamatchi Amman Trust reported in (2012) 206 Taxman 69. In the said case, the respondent/assessee sought for registration under Section 12AA of the Income Tax Act on the ground that the object of the Trust was religious. The Commissioner of Income Tax rejected the application on the ground that the Trust was spending money in receip....
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....come. Thus, the Division Bench held "from a reading of the above, it is clear that the income derived from the property held under trust wholly for charitable or religious purpose, shall not be included in the total income of the Trust. Therefore, the said provision would be applicable to both the Trusts established with the object of charitable as well as religious purposes. Therefore, Section 12AA of the Income Tax Act does not make any difference between the Trusts created with the object of charitable and religious purposes and, even if the Trust is not created with both the objects, law does not make any disqualification for the trust to make an application for registration. Therefore, the Tribunal has correctly applied the provision o....
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....ing commenced its activity for the grant of registration. The provision under Section 12AA of the Income Tax Act does not stipulate such a condition for grant of registration. On the other hand, Section 12AA (1) contemplates satisfaction of the Commissioner about the objects of the Trust and the genuineness of the activities and make such enquiry as may be necessary for the purpose of grant of registration. In so considering the application, the Commissioner has to give an opportunity to the assessee as provided for under proviso to sub-section (1) of Section 12AA. Under sub-section (3) of Section 12AA, the Commissioner is given power to cancel the registration, if he satisfies that the objects of such trust are not genuine or not being car....