2018 (4) TMI 185

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.... to as 'the Act') and rejecting the application for grant of approval of the assessee u/s 80G(5)(vi) of the Act. Shri S.M. Surana, Ld. Advocate appeared on behalf of assessee and Md. Usman, Ld. Departmental Representative appeared on behalf of Revenue. 2. Both appeals preferred by the assessee are against the separate orders of Ld. CIT(E), Kolkata dated 14.09.2017 and since both these appeals have been heard together, they are being disposed of by this common order. 3. The grounds raised by the assessee in ITA No.2283/Kol/2017 are as under:- "1. For that the order of the Ld. CIT(Exemption) is arbitrary, and is not in accordance with law. 2. For that the order of the Ld. Commissioner of Income Tax (Exemption) erred in refusing to gra....

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....r at the time of hearing." 5. The brief facts of the case are that the assessee is a Trust which was formed vide Trust Deed dated 27.09.2016. The Trust filed an application in Form 10A for registration u/s 12A of the Act and Form 10G for granting approval u/s 80G of the Act on 31.03.2017 before the ld. CIT (Exemptions), Kolkata. 6. The Ld. CIT(E) rejected the application for registration u/s 12A and 80G by separate order dated 14-09-2017. The reason for the cancellation was explained that the trust has not started its activities and therefore it was not possible for him to satisfy about the objects and genuineness of activities before granting the registration in pursuance to the provisions of section 12AA of the Act. As such in the even....

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....pur Development Authority Vs CIT ITA 756/Kol/2010, dated 24.6.2016 and M/s Broadway Charitable Trust Vs CIT ITA No 647/Kol/2013 dated 29.4.2016. He also relied in a decision rendered by a Coordinate Bench of Delhi Tribunal in the case of Dharma Sansthapak Sangh (Nivas) -vs.- CIT (2008) 118 TTJ (Del.) 823, it was held as follows: "10. The law is now well-settled that while granting the registration to the charitable institution or trust, if it is at the commencement stage, the powers of CIT, with whom 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 and this well established law is supported by the decisions relied upon the learned A....

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....ted 23.01.2009, M/s Ginia Devi Todi Charitable Trust, Kolkata Vs Director of Income Tax ITA 738/Kol/2010, dated 1.6.2011, Bani Mittra Charitable Trust, Kolkata Vs. Director of Income Tax ITA 1154 &1155/Kol/2009, dated 25.8.2009 the same conclusion was reached by following the earlier decision of ITAT, Delhi in the case of Dharma Sansthapak Sangh (Nivas ) (supra). The facts of this case are squarely covered by the decision cited above. Respectfully following the judicial reasoning, we direct the ld. CIT(E) to grant registration to the assessee-Trust under section 12AA of the Act and also to grant exemption certified under section 80G of the Act." On the other hand, the Ld. DR vehemently relied on the order of the Ld. CIT(E). 9. We have he....