2017 (10) TMI 528

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....y out, undertake, promote, encourage, support, assist and aid for promoting education, enhancing vocational skills and livelihood projects, preventive healthcare and sanitation, reducing inequalities faced by socially and economically backward groups, sustainable development, relief and rehabilitation, clean India, sports etc. It came into existence through a Certificate of Incorporation pursuant to sub-section (2) of section 7 of the Companies Act, 2013 and rule 8 of Companies (Incorporation) Rules, 2014 dated 23.08.2016. The Trust filed an application in Form 10A for registration u/s. 12A of the Income-tax Act, 1961 (hereinafter referred to as the "Act") and Form 10G for granting approval u/s. 80G of the Act on 02.12.2016 before the ld. C....

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.... of the I. T. Act, 1961." 3. Before us, Ld. Counsel for the assessee stated that while granting the registration to the assessee, which is at the commencement stage, the powers of ld. CIT(E) with whom the application is f i led, are l imi ted to the aspect of examining as to whether or not the objects of trust are chari table in nature and since the Trust was formed on 23.08.2016 and the application for registration was made on 02.12.2016, though the activi ties commenced to some extent, which was less never theless according to ld AR i t is not open for the ld. CIT(E) to go into the quanti tative aspect of the activi ties of the Trust whi le considering the application for registrat ion u/s 12A. 4. The Ld. AR urged before us that the Ch....

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....o decide that whether such trust/ institution is entitled for registration. So long the objects of the trust are charitable in nature, registration cannot be refused, if the trust is genuine. Therefore, we find no material on record to justify the action of the CIT vide which the assessee trust has been refused for grant of registration. We direct CIT to grant registration to the CIT (sic-assessee-trust). The appeal filed by the assessee is allowed."[Emphasis supplied] While deciding the appeal in the above case, the Tribunal took into consideration the decisions of Tribunal in the cases of Acharya Sewa Niyas Uttaranchal vs. CIT [(2006) 105 TTJ (Del) 761] and Modern Defence Shikshan Sansthan vs. C.I.T. [(2007) 108 TTJ (Jd) 732]." Ld. ARfo....

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....m the application is filed by such trust/institution, are limited to the aspect of examining that whether or not the objects of trust are charitable in nature. A perusal of the object ives sought to be achieved by the assessee Trust is undisputedly carrying of charitable activity. It should be kept in mind that at the stage of commencement of institution/ assessee Trust, it is not relevant to decide whether the Trust has actually carried out the charitable activities because in this case it is in the nascent state only ie, within four months of its incorporation the relevant applications were moved by the appellant. So long the objects of the trust are charitable in nature; registration cannot be refused, if the trust is genuine. Therefore,....