TaxTMI 
TaxTMI 
2013 (1) TMI 885
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....er section 12AA of the Act and for grant of approval under section 80G of the Act respectively. The CIT has rejected both the applications on similar ground that after amendment by the Finance Act, 2008, w.e.f. 01.04.2009, any activity in the nature of trade, commerce or business, or any activity rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, etc., ceases to be a 'charitable activity'. The CIT held that the assessee's claim is hit by proviso to section 2(15) of the Act, therefore, the assessee Trust cannot be said to be trust for charitable purpose. The CIT rejected both the applications for grant of registration under section 12AA of the Act and grant of approval under section 80G of the Act. 4. We have heard the ld. Representatives of the parties and records perused. The ld. Authorised Representative submitted that the facts of the case under consideration are identical to the facts of the various cases decided by the Agra Bench such as in the case of Smt. Bimla Devi Gopal Prasad Press Wale Charitable Trust vs. CIT-1, ITA Nos.288 & 289/Agr/2012, order dated 23....
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....th law. To examine this issue we would like to refer the relevant section 12AA of the Act which is reproduced as under:- "12AA. (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) of sub-section (1)] of section 12A, shall- (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard. [(1A) All applications, pending before the Chief Commissioner on which....
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....were present in person in his office at Ayakar Bhawan, Sanjay Place, Agra on any of date of which the case is shown to be heard as per order sheet entries or otherwise any personal hearing was granted by him in the matter." ........................... "(iv) As regards the query as to whether the CIT-1, Agra was present in person in his office on the date of hearing, it is to be mentioned that the charge of the CIT-1, Agra during the period was being held as additional charge by Shri B.P.S. Bisht in addition to his regular charge of the CIT-1, Kanpur. From the order sheet of the file it is not clear as to whether the file was put up to him at Agra or was taken to Kanpur for his approval" 5.3 The assessee has furnished a copy of trust deed. According to that, the objects of the trust are as under:- (Page no.6 of Paper Book) "4. OBJECTS a. Educational - to run, maintain or assist any educational or vocational training or to grant individual scholarships for poor, deserving and needy students for elementary and higher education. b. Medical - to run, maintain or assist any medical institution, nursing home or clinics or to grant assi....
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....When the order under section 12AA is not passed before expiry of six months from the end of the month in which the application was received to the CIT, the trust is deemed grant of registration as held by the Hon'ble Allahabad High Court in the case of Society for the Promotion of Education Adventure Sport & Conservation of Environment vs. CIT, 171 Taxman 113 (All).Further, on identical set of facts, the I.T.A.T., Agra Bench in the case of Shiksha Sankalp Society vs. CIT in ITA No.418/Agr/2010, order dated 18.05.2012 has held as under :- (Paragraph nos.6 & 7) "6. Considering the above discussion, the impugned order dated 27.07.2010 cannot be sustained in law and accordingly, we hold - (i). That the CIT, Aligarh has not conducted any enquiry into the matter in order to satisfy himself about the genuineness of the activities of the assessee institution or fund; (ii). That the impugned order is passed by the ld. CIT without giving opportunity of being heard to the assessee and in most mechanical manner, merely relying upon the order sheet dated 08.07.2010 recorded by ITO (Tech.); (iii). That the impugned order is passed beyond the period of 6 months....