2017 (2) TMI 653

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....3-2015 for seeking registration u/s 12AA of the I.T. Act, 1961 and erred in holding that the activities of the society are not charitable purpose as defined u/s 2(15) of I.T. Act. 2. That the order of the worthy CIT (Exemptions), Jaipur rejecting the application of assessee seeking Registration of Society u/s 12AA of I.T. Act is arbitrary, whimsical, capricious, preserve and against the law and facts of the case. The order of the CIT - Exemptions, Jaipur in this regard deserves to be set aside and direction be given for grant of registration to the Society u/s 12AA of I.T. Act'' 2.1 Brief facts of the case are that the assessee submitted an application in Form No. 10A for seeking registration u/s 12AA of the I.T. Act, 1961 on 31....

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.... noticed that all the objects of the society are for advancement of benefit of general public. The activities of the society are being run for non-profit motive (paper book page 6 para 3(A)(iii). The profit of the society is not distributed among the members of the society. As per registration documents, the society can only be dissolved with the constant of State Govt. and on the dissolution of the society its all movable and immovable assets are required to be transferred to other society having the same objects. It is also noted that the genuineness of the society has not been doubted by the ld CIT (Exemptions). The aims and objects of the society are charitable in nature as per Section 2(15) of the Act which covers the definition of cha....

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....f the assessee. On appeal : Held, dismissing the appeal, that under section 12AA of the Income-tax Act, 1961, there are no restrictions of the kind which the Revenue was reading into in this case. In other words, the statute does not prohibit or enjoin the Commissioner from registering a trust solely based on its objects, without any activity, in the case of a newly registered trust. The statute does not prescribe a waiting period, for a trust to qualify itself for registration. If the Revenue's contentions were correct then, necessarily, a condition would have to be read into the provision that the Commissioner should be satisfied that the trust was in fact engaged in charitable activities which would in turn inject considerable deal of....