TaxTMI 
TaxTMI 
2014 (3) TMI 64
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....ct dated 23-03-2011 passed by the Director of Income-tax (Exemptions), Delhi rejecting appellant's application dated 14- 09-2010 for registration of Charitable Institution u/s 12(a) of the Income tax Act is bad in law on the facts of the case and in view of the fact that it has been passed without allowing opportunity of being heard under proviso to section 12AA(1) of the Income Tax Act. 2. That the Director of Income-tax (Exemptions) while rejecting the application erred in observing that the Trust could not prove the genuineness of the activities of the Trust without appreciating the submissions made in appellant's letter dated 20-12-2010." 2. Brief facts are: The assessee a registered society, applied for registration....
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....gard is placed on the decision of the Hon'ble High Court in the case of Self Employees Service Trust vs. CIT 247 ITR 18(Kerala). In this case although the nature of the objects was charitable and voluntary, the trust had not commenced any of its activities. The trust could not produce any evidence before the CIT regarding the genuineness of its activities and, therefore, th4e Hon'ble High Court dismissed the trust's appeal against CIT's order rejecting registration u/s 12AA. 3. 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 of charitable in nature; (ii) The activities of the society should be genuine. ....
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....e or not, no dispute has been raised in this behalf. Whether the activities which are carried out after registration are genuine or not fall in domain of the assessing officer while framing the assessment where he can examine these aspects and accordingly apply the provision. The assessee being a new trust undertook first the activity of creating a web site and making its objects and activities known to public. This is an activity towards the promotion of objects of the trust. Even if it is held that there are no charitable activities, the registration cannot be refused at initial stage by ld. DIT(E) for this reason. Reliance is placed on the following judicial decisions : (i) Hon'ble Punjab & Haryana High Court in the case of O.P. J....
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....subjectivity. It is quite possible that if such flexibility is introduced, it would be susceptible to varied interpretation by the different authorities, in that some would be satisfied with the activity of few months, while others may wish to examine the activities of the organization for longer time. (iii) Hon'ble Allahabad High court in the case of Hardayal Charitable & Educational Trust Vs. CIT (2013) 355 ITR 534, holding that at the time of registration u/s 12AA, the Commissioner is not required to look into the activities where such activities have not actually been undertaken or it is in the process of its initiation. Where a Trust has been set up with objects of establishing charitable activities and it is in the process of e....
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....s and gone through the entire material available on record. From the DIT(E)'s order it emerges that no dispute has been raised about the charitable nature of the objectives of the trust as per the memorandum. The adverse inference has been drawn on possible intention, activities i.e. the issues, which, in our view are not germane at the time of grant of registration of trust u/s 12A more so when the assessee's objects are not held to be non charitable. The non-contribution of membership fee by general members and life members may be paid later inasmuch unless the members makes the necessary contribution rights of membership cannot dwell on them. 5.1. Apropos the income and expenditure, it has been accepted by the assessee that it....