TaxTMI 
TaxTMI 
2015 (10) TMI 801
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....f the Income Tax Act, 1961 to the assessee Trust by holding that the object of the Trust are not charitable and the activities of the Trust are not genuine. (2) The learned Commissioner of Income Tax-II, Jaipur has erred in facts and in law in rejecting the application of registration filed u/s 12AA by presuming that consultancy charges receipts shown by Trust is income of its sole Trustee and drawing incorrect inferences from material available on record in holding that activities of Trust are not genuine. 3. The appellant craves to alter, amend and modify any ground of appeal." 2. Both the main grounds of appeal of the assessee are interlinked for refusing to grant registration U/s 12AA of the Income Tax Act, 1961 (hereinafter re....
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....e related to the Trust. It has been held that these consultancy charges were received for the professional service of sole trustee Shri Bhagwana Ram Bagaria in his personal capacity. These services related to professional qualification and expertise of Dr. Bagaria. Services given in shape of research work are attributable to personal skill and traits of Dr. Bagaria and his knowledge and brain have been used for these services. It has been held by the learned CIT that these consultancy charges are income of Dr. Bagaria in his individual capacity and not the income of the Trust, but Shri Bhagwana Ram Bagaria had tried to shift his income as income of the Trust to avoid payment of due taxes and for only this purpose, the Trust was settled. Thu....
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....) 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. As per the observations made by the learned CIT, the registration should be given to the Trust or institution, who are sincerely pursuing their charitable/general public utility objects through genuine activities. Accordingly, the learned CIT has to be satisfied about the genuineness of the activities of the Trust or institution. Thus, the satisfaction of the Commissioner of Income Tax is of the paramount importance besides genuineness of the activities carried out by the Trust or institution. Mere objects of charitable nature should be sufficient for grant....
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....shna Charitable Trust had organized various camps wherein Dr. Bagaria had rendered medical, social and humanitarian services. These activities clearly depicts that the Trust had genuinely carried out charitable activities in pursuance to its object. In support of the same, it had furnished complete details before the learned CIT(A). Clause of the trust deed provides that the assessee Trust can carry out or award any scientific research in basis/applied/medical sciences and the alterative systems of medicine, social service, education service or any other work in the public and national interest. He further relied upon the following case laws: 1. Tor Steel Research Foundation Vs. ITO 42 ITD 39 (Cal.) (Trib.). 2. ACIT Vs. A.A. Bibijiwal....