2016 (2) TMI 746

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.... 2. Briefly, the facts of the case are that the appellant-trust was formed on 24/07/1991 and it was duly registered with the Sub-registrar, Bangalore. The appellant trust was formed with the following objects: 1. To advance the cause of education and diffusion of knowledge without distinction of caste, creed, sex or language. 2. To provide establish, endow, maintain, control and manage schools and other educational institutions and to do all the acts and things necessary for or conducive o the promotion of schools of the Montessori and Kindergarten types Primary, Secondary, Higher commercial, technical and industrial education at Nelamangala or elsewhere and for this purpose to start, establish conduct, maintain, manage, r....

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....1.And generally on such objects of charity and public good as the trustees may think proper and those which are covered by the definitions of charitable purpose as 2(15) of the IT Act, 1961 with all statutory deficiations and replacements thereof in future. 3. Thus, the appellant-trust was formed with the object of advancing the cause of education, diffusion of knowledge environment, to establish run schools etc. The assessee society made an application in form No.10A dated 18/12/2014 to the CIT(E) Bangalore for registration of the Trust u/s 12A of the IT Act, 1961 and for approval u/s 80G of the IT Act, 1961 in Form No.10G vide application dated 28/01/2014 for grant of approval u/s 80G of the IT Act, 1961. The ld. CIT(E) vide his letter....

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....e CIT(E) is justified in denying the registration u/s 12A of the Act and approval u/s 80G of the IT Act, 1961. The ld. CIT(E) denied the registration only on the ground that the appellant-trust had not furnished the clarification as to receipt of rental income for conducting tuitions and the appellant-trust was not serious in prosecuting the applications. In our considered opinion, the contentions of the ld.CIT(E) are not tenable in the facts of the present case as the appellant-trust had duly complied with all the letters issued by him and therefore, the ld.CIT(E) should not have held that the appellant-trust was not serious in prosecuting the applications. The receipt of rental income by the appellant-trust can be examined only during the....

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....nd it is not authorized to go 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(Exemption) to register the society as a religious trust u/s 12A of the Act". It may be further added that the Co-ordinate Bench of the Delhi Tribunal (Hon'ble AM is the author) in the case o....