TaxTMI 
TaxTMI 
TaxTMI 
2016 (4) TMI 166
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....st, it is a charitable trust established with the object of spreading education and providing medical and social relief to the poor. Earlier, the applicant-trust applied for registration u/s 12A of the Act in the prescribed format, Form No. 10-A alongwith the requisite documents on 09.03.2011. The registration was refused by the ld. CIT and the ITAT 'G' Bench, New Delhi vide its order dated 11.6.2012 in ITA Nos. 4641 & 4642/Del/2011 restored both the issues to the file of the ld. CIT for fresh adjudication on merits. During the second round of proceedings, the ld. CIT, Rohtak called for the remand report from the concerned AO as to whether the applicant fulfilled all the conditions required for grant of registration applied for and the report was received through the JCIT, Sonepat vide his office letter dated 18.2.2013. During the remand proceedings, the applicant-trust submitted that further information and explanation to the JCIT as well as the AO did not clearly recommend the case for grant of registration u/s 12A of the Act and left the matter to be decided by the ld. CIT, Rohtak on merits. The ld. CIT, in the impugned order, considered the information as insufficient and passe....
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....of receipt of Tribunal order which is 11.6.2012, which was actually passed on 5.4.2013. The ld. AR lastly contended that the ld. CIT, Rohtak rejected the application for registration by considering the irrelevant facts and on incorrect basis. Therefore, the applicant-trust should be granted deemed registration. 4. Replying to the above, the ld. DR contended that as per the directions of the Tribunal, the ld. CIT, Rohtak properly asked for remand report from the AO and after considering the same, held that the JCIT as well as the co did not clearly recommend the case for registration u/s 12A of the Act and left the matter to be decided on merits. The ld. DR further submitted that during the first round of proceedings, the applicant-trust did not cooperate with the revenue authorities and did not submit required details and documents and in the absence of material for recording satisfaction by the ld. CIT, as required u/s 12A of the Act, the ld. CIT rejected the application for registration. The ld. DR further drew our attention towards para 5 of the Tribunal order and submitted that in pursuance of direction of the Tribunal, the ld. CIT(A) properly conducted second round of proceed....
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....fer the assets to any or many member of the office bearer." 7. In view of the above, it is amply clear that the ld. CIT(A) took the sole basis for rejection of application for registration u/s 12A of the Act, the trust deed and stipulations. The ld. CIT(A) also noted that the JCIT as well as the AO did not recommend the case for registration u/s 12A and left the matter to be decided on merits by him. As per the proposition laid down by the co-ordinate bench of ITAT, Ahmadabad in the case of Jupiter Medical Research Centre Trust Vs. CIT 128 TTJ [Ahd] UO 118, as relied by the ld. AR wherein it was held that merely because the trustees are of the same family, it does not put a rider or any adverse inference that the assessee applicant-trust is not for charitable purposes. 8. From the impugned order of the ld. CIT we note that in the ground taken for rejection he observed that the appellant trust has carried out one time activity of the distribution of sums and the applicant society has not carried out any activity in the field of formal education. He further alleged that the distribution of ht sums of money cannot be described as charitable activity in view of section 2(15) of the ....
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....ports the JCIT & ACIT/AO has also stated that the trust is running on deed which was made on 27.12.2010 and the trust is an educational and charitable trust with the object to help in spreading of education in its widest connotation with special focus on education of poor and needy without any preference on the basis of religion, race, caste, sex or place of birth and operation of the trust shall be carried in accordance with the intention of earning profits will perform with service motive only. In such situation the basis and allegations labelled by the ACIT are not found to be sustainable. 12. We note that section 12A of the Act provides conditions for applicability of section 11 and 12 of the Act and section 12AA of the Act provides procedure for registration u/s 12AA of the Act. The provisions of section 12AA of the Act provide that the Commissioner shall call for documents, information and conduct inquiries to satisfy about the genuineness of the activities of the trust or institution and after recording satisfaction about the charitable or religious nature of the objects and genuineness of the trust or institution, CIT will pass an order granting registration u/s 12AA of th....