TaxTMI 
TaxTMI 
2015 (10) TMI 2104
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....ion u/s 12AA of the Act. The assessee trust was created on 24.04.2013 and during the year ended on 31.03.2014, the assessee had purchased land for construction of a Dharamshala. No other activity apart from the purchase of land was carried out during the year. 3. During the proceedings before the Ld. Commissioner of Income Tax (Exemptions) Lucknow, the assessee was asked to demonstrate what charitable activities had been carried out by the trust and the Ld. CIT(Exemptions) has noted that during year consideration, assessee trust had not carried out any charitable activity. The Ld. CIT(Exemptions) has also noted that as per the provisions of the trust deed only persons belonging to the Agarwal Community/Caste could become members of the Tru....
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....ment of the Hon'ble Allahabad High Court in the case of CIT Vs. Surji Devi Kunji Lal Jaipuria Charitable Trust reported in 186 ITR 728. 5. Ld. DR on the other hand relied on the order of the Ld. CIT(Exemptions) and submitted that the grant of registration to the assessee trust was rightfully refused. 6. We have considered the rival submissions and perused the material available on record. It is seen from the copy of trust deed filed on pages 11 to 27 of the paper book that the trust came into existence on 24.04.2013. Further on 07.07.2013, the assessee trust has purchased a plot measuring 498.17 sq.mtr. in area and another plot measuring 351.30 sq.mtr. in area on 30.07.2013 on which the Dharmshala was proposed to be built. This purchase o....
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....ivities of the trust or institution and also to make such enquiries as he may deem necessary in this behalf and after satisfying himself about objects of the trust or institution and the genuineness of its activities he shall pass an order in writing registering the trust or institution. If he is not satisfied, he would refuse the registration. In our view, while considering the issue of registration under section 12AA, the scope of enquiry of the Commssioner would be limited to the aforesaid extent. On the facts of the case, it is seen that this is the first year of the assessee trust and at the time of filing of application for registration there were no substantial activities. The Ld. CIT(Exemptions) drew adverse inference on inactivity ....
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....t 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 initial stage the test of the genuineness of the activity cannot be a ground on which the registration may be refused." 9. Further another ground for refusing the registration was that the assessee trust catered to a particular community or caste namely Agarwal Community or the followers of Maharaja Agras....