AI Drafter 
TaxTMI 
TaxTMI 
2015 (11) TMI 811
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....e order of Ld. CIT is against law and facts. ii. That the Ld. CIT erred in rejecting the application of the assessee for registration u/s 12AA although Society fulfils all the conditions for registration and all the objects and activities of the Society are eligible for grant of registration u/s 12AA of the Act. iii. That the appellant craves leave to add or alter any Ground of Appeal. 2. The brief facts of the case are that the appellant society was registered on 17th March, 1995 vide Certificate No. 83 of 1995 under the Societies Registration Act with the Registrar of Firms & Societies, Shimla, Himachal Pradesh. The appellant society filed an application for registration under the provisions of Section 12AA of the Income-tax Act,....
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.... not complied with the direction of CIT to furnish the details of donors of corpus funds and therefore, the CIT had no opportunity for examining the genuineness of the activities of the appellant society. Therefore, she prayed that the matter may be restored back to the file of the CIT for fresh examination of this issue. 5. We heard the rival submission and perused the material on record. In the present appeal, we are required to adjudicate whether the Commissioner of Income Tax, Rohtak was justified in rejecting the application for registration under Section 12AA of the Act or not. The Commissioner of Income Tax had rejected the application primarily on two grounds. The first ground relates to the jurisdiction of the case, according to....
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.... of grant of registration under Section 12A of the Act, the Commissioner may examine, whether the application is made in accordance with the requirement of Section 12A , whether the form has been properly filled up or not and the objects of the society are charitable or not. The relevant para of aforesaid case is reproduced below: "2. A reading of the section shows that the registration under section 12A is a precondition for availing the benefit under sections 11 and 12 of the Act. Section 11 provides for exemption of income which is applied for charitable purposes. Section 12 is in the nature of an Explanation to section 11. Before a person can claim the benefits of section 11 or section 12, as the case may be, he must obtain registrat....
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....he application of income of the trust for charitable. The stage for application of income is yet to arrive when such trust/institution files the return. The relevant para of this case is reproduced as under: ".................Therefore, the provisions of Sections 11, 12 or Section 10(23C) of the Act, deal with the income of a Trust or of the Institution and the circumstances as to when such income is to be excluded for computing the total income, but the basis of such benefit is the registration under Section 12AA of the Act. Unless a Trust or Institution is registered under Section 12AA of the Act, such Trust or Institution shall not be entitled to exclude from its total income, deductions or contributions or from other sources. Therefo....
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.... of institution relates to the objects so that the activities be charitable, which should be considered as genuine trust. If the activities of the institution are taxable for any reason the matter to be considered at the time of assessment. The source of income cannot be questioned at the time of granting the registration under Section 12AA of the Act. 7. The ratio that can be culled out from the above decisions is that the Commissioner is only entitled to examine whether the objects of the institutions are charitable or not. Once the objects of the institutions are found to be charitable, the Commissioner has no option, but to grant registration. In the present case the Commissioner has not found that any objects of the trust are not ch....