2014 (4) TMI 1046

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.... For the Respondent : Mr. Pramod Nangia, CIT ORDER Challa Nagendra Prasad (Judicial Member).- This appeal is filed by the assessee against the order of the Commissioner of Income-tax-I, Coimbatore dated December 12, 2013 refusing registration under section 12AA of the Act. 2. Counsel for the assessee submits that the Commissioner of Income-tax has not examined whether the objects of th....

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....on 12AA of the Act. The reasons for which registration under section 12A was refused appear to be not good reasons. At the time of registration, one has to look into the objects of the trust which the Commissioner of Income-tax has completely omitted to do so. The reasons given by the Commissioner of Income-tax are only apprehensions that the assessee is not carrying out any charitable activities ....

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....considering the application, the Commissioner has to give an opportunity to the assessee as provided for under the 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 is satisfied that the objects of such trust are not genuine or are not being carried on in accordance with the objects of the trust. Whe....

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....ed in refusing the registration at the threshold. The Tribunal had followed the decision of the Gujarat High Court in the case of CIT v. Kutchi Dasa Oswal Moto Pariwar Ambama Trust [2014] 362 ITR 194 (Guj). We respectfully agree with the decision of the Gujarat High Court." 6. As could be seen from the above order, the hon'ble High Court held that commencement of activity is not a precondit....