TaxTMI 
TaxTMI 
2017 (7) TMI 769
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.....) erred in law and on the facts in passing the order of rejecting the application for the grant of the registration U/s 12AA of The Income Tax Act, 1961 of the trust by ignoring the law laid down by the jurisdictional High Court of Allahabad in the most recent case of Hardayal Charitable and Educational Trust V Commissioner of Income Tax-II, Agra reported as (2013) 32 TAXMANN.COM 341(Allahabad) the facts of which were entirely similar to that of the petitioner's case. 2. That on the facts and in the circumstances of the petitioner's case, the order passed by the learned Commissioner of Income Tax, Muzaffar Nagar (U.P.) deserves to be set-aside. 2. The brief facts of the case are as under: It is observed from th....
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....prove ecology and sanitary conditions in the backward area of the country. 6. To promote and encourage cultural activities in India. 7. To promote research by establishing research institution. 8. To provide aid to poor and needy persons by way of financial help and by arranging desired such facilities. 9. To promote Indian culture. 10. To publish and distribute literature magazine etc., for enhancement of general knowledge of the public at large. 11. To run social projects beneficial to the society at large. 12. To develop institutions for the disabled persons to provide education food and clothing to them. 13. To run and maintain hospitals, schools and other instituti....
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.... placed on record and the decisions relied upon by Ld. AR. Hon'ble Allahabad High Court being the jurisdictional High Court for assessee, has held in the case of Hardayal Charitable and Educational Trust (supra) as under: "at the time of registration under section 12AA of the income tax Act, which is necessary for claiming exemption under section 11 and 12AA of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in process of its initiation. Where a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under section 12AA cannot be refused, on ....
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.... Act, while considering the application for registration of trusts is limited to the extent of satisfying himself about the objects of trust, being charitable in nature. At this stage of granting registration under section 12AA of the Act, he has to satisfy himself about the objects of the institution and genuineness of the activities. He is not required to look into the utilisation of funds, commercial nature of activity etc., at that stage. These aspects are to be looked into by Assessing Officer at the time of assessment. This Tribunal in the case of Baba Educational Welfare Society (supra) has held as under: "As per the scheme of the Act, registration under section 12 A of the Act does not ipso facto entitle an assessee to avai....
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....ion that the same would not be used in the proper manner and for the purposes relating to any charitable purpose, rejection cannot be made. 34. Section 12 AA, which lays down the procedure for registration, does not speak anywhere that the Commissioner while considering the application for registration shall also see that the income derived by the trust or the institution is either not being spent for charitable purpose or such institution is earning profit. The language used in the section only requires that activities of the trust or the institution must be genuine, which accordingly would mean, they are in consonance with the objects of the trust/institution, and are not mere camouflage but are real, pure and sincere, nor agains....