TaxTMI 
TaxTMI 
2015 (3) TMI 1293
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the time and copy of order of CIT, Bathinda in original along with receipt of Rs. 500/- deposited as appeal fee are also enclosed." 2. The brief facts of the case as arising from the order of the ld. CIT, Bathinda, are reproduced for the sake of convenience: "An application for registration u/s 12AA of the Income Tax Act, 1961 was filed by EK Umeed Welfare Society, Shakti Nagar, College Road, Fazika in Form No.10A u/s 12A (1) (a) of the Income Tax Act, 1961 on 22.03.2013. 2. In order to verify the genuineness of the activities of the applicant society/trust, the application was required to attend on 28.05.2013 and on further dates alongwith complete set of books of accounts and other relevant documents for the last three years. Sh. A.K. Periwal CA attended the proceedings from time to time and requisite information was furnished by him. 3. The Joint Commissioner of Income Tax, Range-II, Bathinda has not recommended the registration of the application u/s 12AA of the Income Tax Act, 1961 in his report submitted vide No. 12AA/13/2013-14/276 dated 03.05.2013. 4. In this case, the trust was created vide Memorandum of Association dated NIL as dat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ities carried out during the year ending 31.03.2013. The activities are w.r.t. aid to needy persons, widows and needed family, ration distribution to widows, clothes, shoes, chapple to ladies and help to students and other society expenses. Moreover, the assessee has also filed before the ld. CIT, the 'Brief Notes of the Activities of the Society' along with newspaper cuttings to substantiate the fact that the activities of the Society have been widely reported in various newspapers/media (placed at PB 27-40). The contribution of corpus funds by Sh. Roshan Lal Khunger and Smt. Rakesh Rani W/o Sh. Roshan Lal Khunger alongwith their affidavits and the sources were also filed before the ld. CIT (PB 41-42). The assessee is a registered Society with the Registrar of Society dated 09.11.2013 and the application before the ld. CIT was filed in Form No.10A and no defect in any of the document filed before him has been pointed out in the order dated 13.02.2013. The defect pointed out by the ld. CIT in para 5 is that the donations have been shown at a negligible figure of Rs. 39,235/- and the activities till the date of application were negligible and therefore, reasonable satisfaction can n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e activity. The assessee has filed 'brief notes of the activities of the Society' along with newspaper cuttings to substantiate that the activities of the Society have been widely reported in various news papers/media (PB 27-40), along with various vouchers for the expenditure incurred. During the year ending 31.03.2013 starting from 01.11.2012 for five months, the assessee has incurred expenditure of Rs. 34,726/- out of donations received. The income & expenditure has been incurred to help the needy persons, widows & needy families, students and society expenses etc., which in fact, are in consonance with the objects of the Society available at PB 3 to 5. On perusal of the same alongwith 'brief notes of the activities of the Society' and newspapers cuttings etc., placed on record, we find that none of the expenditure is found to be of non-charitable nature and therefore, even if the activities of the assessee Society and the donations are negligible according to the ld. CIT, the ld. CIT cannot refuse registration u/s 12AA(1) of the Act. The reliance is placed on the decision of the Hon'ble Madras High Court, in the case of Director of Income-Tax (Exemptions) vs. R.J.B.V. Vasudevan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ority has to test the nature and the activity of the trust to grant registration. The original authority had not doubted the bona fides of the trust or the activity of the trust but on the ground that the trust had spent low quantum towards charitable activity, the authority had declined registration of the trust. A trust can only do activities within its financial capability. A trust is not measured by its financial clout but by its philanthropic disposition. Therefore, the interpretation given by the original authority declining to register the trust has no legal basis. Hence, the Tribunal was justified in setting aside the order of the original authority." 6. Further, reliance is placed on the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Income Tax-1, vs. Kutchi Dasa Oswal Motor Pariwar Ambama Trust, (supra) and the relevant decision in para 5 is reproduced hereinbelow: "5. It can thus be seen that u/s 12AA of the Act, Commissioner has to satisfy himself about the objectives of the trust and the genuineness of its activities. For such purpose, he has the power to call for such documents or information from the trust as he think are necess....