2014 (11) TMI 446

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....tted in the order dated 23.12.2013 about charitable nature of the trust, hence the observation made by the Tribunal in para 3.1 of the Tribunal order dated 30.5.2014 is contrary to law and is against the material on record. (2)Whether the object of the trust having not been admitted by the Commissioner of Income Tax to be charitable in the order dated 23.12.2013, the Tribunal was not justified in relying upon the decision in ITA Nos. 75 & 76/A/2014 in the case of Panchganga Foundation especially when the said order has also been challenged by a separate appeal under Section 260-A of the Act. The Commissioner of Income Tax, Varanasi, rejected the application for registration under Section 12AA of the Act and consequently for the grant of a....

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....ucational 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 tested 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 Act and thus at that such initia....