TaxTMI 
TaxTMI 
2016 (2) TMI 563
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....oth in the urban and rural areas. b) To impart training, teaching and to run medical, dental, nursing, ayurvedic, medical colleges, to cater to the needs of the economically weaker sections, of the society and minority community. c) To establish,maintain or acquire library or libraries, laboratory, laboratory and/or other research institutions for the benefit of the student community. d) To acquire establish and run professional colleges in medicine, enggg. law, agriculture, computer applications, electronics, commerce and accountancy, business management, pharmacy, nursing, dental, pure and applied science including post graduate centres and research foundations. e) To guide and provide information to those who are seeking schools from KG classes to college levels. f) To establish and run Kannada, English and other medium school from KG classes to college level. g) To institute and award scholarships in India or abroad for the study research and apprenticeship of all any of the aforesaid medical/educational purposes. h) To negotiate and enter into any agreements with the central and state Government Universities, Munic....
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.... to afford opportunities for research work in art, science, cultural and technological subjects. s) To manage, invest, central dispose of purchase, grant, transfer and otherwise deal with the properties, movable or immovable and subject matter of the trust in such a manner as the trustees deem fit so as to enable the trust to carry out the objects of the trust effectively. t) To organize and/or assist in organizing meetings, conferences, seminars, discussion forums, exhibitions etc. in furtherance of the objects of the trust. u) To accept donations, grants, presents, aid, assistance from the general public, government companies, rusts, societies, associations, firms, institutions in the form of funds properties, movable or immovable services etc to aid further and achieve the objects o the trust. v) To charge and collect moderate tuition fees as well as any other fees and also recoup themselves for the outlay and expenses, incurred in the upkeep and maintenance of institutions established or about to be established under this Trust Deed. w)Institute such stipends, scholarships, medals and prizes and on such terms off any as they may deem....
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.... does not render the objects commercial. It is open to the appellant-society to run the activities of the trust either in the own premises or rented premises. So long as the objects of the appellant-trust are charitable in nature, the registration u/s 12A and recognition u/s 80G cannot be denied. The issue of violation of provisions of sec.13 can be examined only during the course of the assessment proceedings and similarly he submitted that the genuineness of the activities of the trust can be tested only after the commencement of the activities of the trust. Therefore, he submitted that on none of these reasons, the ld.CIT(Exemptions) can refuse to grant the registration u/s 12A of the Act. In support of this proposition, he relied on the following decisions: i. CIT vs. A.S.Kuppuraju Brothers Charitable Trust (205 Taxman 9(kar) ii. DIT(E) vs. Meenakshi Ammal Endowment Trust (354 ITR 219) iii. DIT vs. Garden City Educational Trust (330 ITR 480) iv. Sanjeevamma Hanumanthe Gowda Charitable Trust vs. DIT(E) (155 ITR 466) 6. On the other hand, learned CIT, DR relied on the orders of the CIT(Exemptions) . 7. We have heard the rival submissio....
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.... into the nature of the activity by which the income is derived by the trust. 5. In the present case, the question is with regard to the registration of the trust in question wherein the objects have been clearly specified. The question of assessing the activities of the trust would arise only after the trust is registered and carries on the activities. At the time of initial registration, the same cannot be a question to be considered. In our view, the Tribunal has rightly allowed the appeal and directed the DIT(Exptn.) to register the society as a religious trust u/s 12A of the Act". (ii) Further in the case of CIT vs. A.S.Kupparaju Bros. Charitable Foundation Trust (supra), the Hon'ble High Court held that in deciding the genuineness of the trust, what is to be seen is whether in terms of objects set out in the trust deed, whether the trust is carrying on its activities or not. The relevant paragraph is extracted below: ".....The certificate of registration is only an enabling provision to claim exemption. By merely granting a certificate income is not exempted. That is only a first stage to claim exemption. The Commissioner of Appeals should not have confus....
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....trustees were contributing the funds by themselves in a humble way and were intending to commence charitable activities. It is not even the case of the Revenue that by the time the application of the assessee came to be considered by them, the assessee had collected lots of donations for the activities of the trust. On the other hand, the grievance of the concerned authorities seems to be that there was no activity which could be termed as charitable as per the details furnished by the assessee, therefore, such registration could not be granted. When the trust itself was formed in January, 2008, with the money available with the trust, one cannot expect them to do activity of charity immediately and because of that situation the authority cannot come to a conclusion that the trust was not intending to do any activity of charity. In such a situation the objects of the trust have to be taken into consideration by the authority and the objects of the trust could be read from the trust deed itself. In the subsequent returns filed by the trust, if the Revenue comes across that factually the trust has not conducted any charitable activities, it is always open to the authorities concerned....
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....e procedural requirements. The Tribunal is fully justified in observing that the manner of application of funds and as to whether the applicant-assessee can claim the benefit of exemption in terms of sections 11 and 12 is a question which has to be examined by the Assessing Officer at the stage when it is urged and not by the Commissioner when such question is not before the Commissioner. It is hereby clarified and emphasized that while registration in accordance with the provisions of section 12A of the Act is a condition precedent for claiming the benefits under sections 11 and 12 of the Act, a registration as per section 12A by itself, will not automatically confer the benefits of sections 11 and 12 on a trust, but the trust will get the benefit only on complying with the requirements of sections 11 and 12 of the Act, which compliance can be examined by the assessing authority, while processing the return filed by the trust. Therefore, this appeal has to be dismissed." (v) It may be further added that the co-ordinate bench of the Delhi Tribunal in the case of Paramount Public School Vs CIT, Rohtak in ITA No.5712(Del.)2013 dated 28-10-2015 (to which one of the Members viz., th....