2014 (8) TMI 492

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.... poor, especially economically backward people in general and for the benefit of people in particular and for the purpose of running schools, colleges, including professional colleges, etc. 3. The Commissioner of Income Tax processed the application under Section 12AA of the Act and found the Trust has not done any charitable acts, rejected the application vide order dated 30.3.12. Aggrieved by the said order of the Commissioner of Income Tax, the Trust preferred an appeal before the Appellate Tribunal and relied on the judgment reported in (DIT Vs Meenakshi Amma Endowment Trust (2011) 50 DTR (Kar.) 243. According to the Trust, the application was filed within three months of the formation of the Trust and the charitable activities canno....

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.... doing the charitable activities and only in order to continue such charitable activities, the Trust has been created in his name and within a month of its formation, applied for registration under Section 12A of the Act, which provides that the registration should be done within one year from the formation of the Trust. 7. It is also relevant to point out that in Meenakshi Endowments's case (supra), the Karnataka High Court has held that when the trust itself was formed in January, 2008, with the money available with the trust, one cannot expect them to do activity of charity immediately and because of that situation the authority cannot come to the conclusion that the trust was not intending to do any activity of charity. We respec....

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....he carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity. 10. From a reading of the above provisions, it is clear that the authority has got power to subsequently satisfy itself about the activities of such trust or institutions as to whether it is genuine or not and whether the trust is being conducted in accordance with the objects of the trust and the authority has got the power to pass an order cancelling the registration of the trust or the institution. We find that the above provision....