TaxTMI 
TaxTMI 
1998 (8) TMI 8
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....ligious and charitable purposes. Its objects are running of orphanages and institutions to train orphans, widows and unemployed. Besides these charitable objects, there are some religious objects also such as establishment of churches and it is claimed that the objects are non-political and non-racial. The society is said to have been formed on August 31, 1985, and was registered under the Tamil Nadu Societies Registration Act on November 15, 1985, and it was on October 1, 1986, that the present application was made under section 12A of the Income-tax Act for registration thereunder. It was informed to the society by the respondent that the application was belated, but besides this, it was suggested by the first respondent that the objects ....
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.... a letter dated December 12, 1988, that the application can be taken up for consideration only after carrying out the suggestions made in the earlier letter. In short, the application for registration was not granted at this stage. It is by this action that the petitioner is aggrieved and comes before this court for a direction as mentioned above. Learned counsel for the petitioner painstakingly invited my attention to the provisions of section 12A of the Income-tax Act and contended that the suggestions made by the petitioner were all in the nature of considering whether the income of the said trust would be liable to be exempted under sections 11 and 12, and more particularly, section 80G of the Act. The view taken by the Commissioner,....
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....nt of registration under section 12A of the Act. Section 12A of the Act is as under : "12A. The provisions of sections 11 and 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely : (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Chief Commissioner or Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12AA : Provided that where an application f....
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.... claim the benefits under sections 11 and 12 of the Act. The caption of the section says "conditions as to registration of trusts." The two conditions which are provided are, firstly, that the person concerned should have made an application for registration in the prescribed form and in the prescribed manner to the authorities named in that section before the first day of July, 1973, or before the expiry of the period of one year from the date of the creation of the trust or establishment of the institution. The second condition provides for the keeping of the accounts in a particular manner and further that such accounts should be audited. he language of the section does not show that in order to be able to get registration under section ....
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.... reported decision in Fifth Generation Education Society v. CIT [1990] 185 ITR 634, by the Chief Justice B. P. Jeevan Reddy (as he then was) who, has taken a view in the following words : "It is evident that, at this stage, the Commissioner is not to examine the application of income. All that he may examine is whether the application is made in accordance with the requirements of section 12A read with rule 17A and whether Form No. 10A has been properly filled up. He may also see whether the objects of the trust are charitable or not. At this stage, it is not proper to examine the application of income." The precedent applies on all fours to the present case. In the present case also, there is no question of considering as to how t....