2017 (11) TMI 77

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....11.2016. The details of the activities of the assessee were called for by the ld. CIT(E) and after receiving the assessee's submissions, it was held that the assessee trust came to existence on 13.10.2016 and in period of more than 7 months, no significant charitable activity has been started by the assessee trust as per its objects. Accordingly, it was held that the matter does not seem fit for granting exemption u/s 80G at this stage and the application filed by the assessee was rejected. 3. During the course of hearing, the ld. AR submitted that the assessee submitted its application for grant of registration u/s 12AA as well as u/s 80G before the ld. CIT(E) on 18.11.2016. The ld. CIT(E) granted registration u/s 12AA on 18.05.2017 how....

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..... There is no requirement in the law that the assessee must start doing charitable activities in a big way before applying for registration under section 80G(5) of Income Tax Act. 7. It was further submitted that the Hon'ble Jaipur bench has also taken this view that CIT cannot refuse registration for the reason that the assessee had not carried out any charitable activities. Reliance is place on the following decision of the Jaipur Bench of ITAT in the case of Jasoda Devi Charitable Trust V/s CIT 43 Tax World 175 wherein it was held held that registration under section 12AA and as well as under section 80G should be allowed to the newly created trust if conditions are fulfilled. The head notes of the case are as under:- "Before....

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....cant activity and accordingly, the application is not fit for grant of approval under section 80G of the Act. In other words, the ld CIT(E) has accepted the fact that the assessee has started certain activities as per its objects. The objects which have been duly verified and approved as charitable objectives while granting approval under section 12AA of the Act. Even during the course of hearing, the ld AR submitted that certain scholarship amount has been disbursed during the year as per its objects and the said fact is on record and submitted before the ld CIT(E) which he has failed to consider. In our view, what is a significant activity is a very subjective term and cannot be a sole basis for rejection of application. Where the assesse....