TaxTMI 
TaxTMI 
2015 (6) TMI 411
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.... of the rejection of the assessee's application for registration u/s.12AA of the Act. The appellant-trust, formed on 05.10.2009, moved the said application with the competent authority under the Act on 19.04.2010 in the prescribed form, furnishing the details as called for from time to time. The basis of the denial of the assessee's claim by the ld. DIT(E) is that no activity had been carried out by the appellant-trust subsequent to its creation, even up to the time its' application was disposed of by it. The ld. DIT(E), as the competent authority, is required by law, i.e., section 12AA(1)(b), to be satisfied about: a) the objects of the trust; and b) the genuineness of its activities. A positive satisfaction with regard to the gen....
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....elf about the objects of the trust or institution and the genuineness of its activities, he- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard.' 3.2 Without doubt, the competent authority is, as per the scheme or procedure of registration, as contemplated u/s.12AA, required to satisfy himself about the objects of the trust and the genuineness of its' activities. For the purpose, he has the power to call fo....
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.... appellant's objects or its' activities. A satisfaction with regard to the genuineness of the activities presupposes their existence. The law, however, does not either postulate a waiting period for the assessee to apply for registration, i.e., after its formation, or for it to carry out the activities for a certain length of time before it could seek registration, making, implicitly, their being carried on a precondition there-for. In fact, in the myriad situations that arise in general or public life, it is difficult to stipulate such a time frame, which would vary with circumstances as also the nature and type of activity to be carried out; the project size; access to material and financial resources, etc. How could, after all, activity ....
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....in fact supported by a series of decisions relied upon before us by the ld. AR, as under, so that the issue is no longer res integra: 1) DIT(E) vs. Pannalalbhai Foundation [2013] 35 taxmann.com 104 (Guj); 2) DIT vs. Foundation of Ophthalmic & Optometry Research Education Centre [2012] 254 CTR 133 (Del); 3) DIT(E) vs. Meenakshi Amma Endowment Trust [2011] 50 DTR 243 (Kar); 4) CIT vs. Kutchi Dasa Oswal Moto Pariwar Ambama Trust [2014] 362 ITR 194 (Guj); 5) Fifth Generation Education Society vs. CIT [1990] 185 ITR 634 (All); 6) Universal Welfare and Education Foundation vs. DIT(E) (in ITA No. 7730/Mum/2012 dated 06.08.2014); 7) Biomedical Foundation of India vs. DIT(E) (in ITA No. 4420/Mum/2011 dated 10.10.2012); and 8)....
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....), and for which reference was made by him to para 3 of the impugned order. The efforts have since borne fruit, he would inform us, with the appellant acquiring land on a 99 year lease basis. The initiation of the process for acquiring the land by the trustee/s, though in their own name/s, in-as-much as a change of user of agricultural land could only be applied for subsequently and by an individual, would itself be under the circumstances regarded as 'commencement' of its activities by the applicant-trust. We have already indicated that there could be number of reasons or circumstances leading to non-commencement of activities by an otherwise genuine trust, so that what is of prime relevance is the nature of the objects as well as an inten....