TaxTMI 
TaxTMI 
2012 (9) TMI 1008
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....G(5)(vi) of the Income-tax Act, 1961. 2. In this case registration u/s. 12AA and approval u/s. 80G(5)(vi) of the Income-tax Act, 1961 was refused on the reason that the assessee has not carried on any tangible charitable activities. Further, the assessee's main object is to conduct research in different fields and the area of operation is worldwide. Moreover, the assessee did not maintain books of account. 3. We have heard both the parties and perused the material available on record. In our opinion, at the time of registration u/s. 12AA, the DIT(E) has to satisfy himself about the genuineness of the activities of the trust and has to see whether it falls under the purview of provisions of section 2(15) of the Act. For this purpos....
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....nclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if-- (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business; (ii) the instrument under which the institution or fund is constituted does not, or the rules....
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....withstanding anything contained in the 7 proviso to clause (15) of section 2, be deemed to have been,-- (a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009. As per sub-clause (vi) of sub-section (5) of section 80G, for recognition, the trust is required to be approved by the Commissioner in accordance with the Rules made in this behalf. The Rules are Rule 11AA prescribed in this regard. As per Rule 11AA, the assessee is required to make an application in Form No.10G. The applic....
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....s 11 and 12 of the Act. The assessee is registered under section 12AA of the Act. Thus sub-clause (i) is satisfied. 6. As per sub-clause (ii) of sub-section (5) of section 80G, the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of its income or assets for any purpose other than a charitable purpose. Admittedly there is no clause or rule governing the institution which contains any provision for the transfer or application of its income or assets for any purpose other than a charitable purpose. The only object of the assessee trust is for carrying out such object of char....