TaxTMI 
TaxTMI 
2019 (1) TMI 1129
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....ring, the Ld. AR of the assessee submitted that the Ld. CIT(Exemption) has rejected the application for granting registration u/s.12AA of the Act in the case of the assessee primarily because of two reasons: i) That the objects of the Trust are only for benefit of Jain community and therefore, section 13(1)(b) of the Act is attracted. The membership of the Trust is limited to the people who are Jain Swetamber. This also attracts section 13(1)(b) of the Act. ii) Donations, including corpus donations received in cash. However, no details of donors are mentioned in the receipt book. 2.1 The Ld. AR of the assessee vehemently argued that at the time of granting registration u/s.12AA of the Act, the objects of the Trust are only to be looked....
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....and therefore, registration could not be denied to the assessee, a charitable Trust, merely on the ground that it has given all scholarship to the students belonging to a particular community. Similarly, the parameter of section 13(1)(b) of the Act has been analyzed in great details by the Co-ordinate Bench of the Tribunal, Pune in the case of Kul Foundation Vs. Commissioner of Income Tax, in ITA No.1692/PN/2013. It has been observed by the Co-ordinate Bench at the time of granting of registration that the powers of the CIT enshrined u/s.12AA of the Act, provided that the CIT is to look into the objects of the Trust and the genuineness of its activities. Merely because, one of the objects of the Trust was for the benefit of upliftment of t....
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....u/s.12AA of the Act was rejected. 5. In deciding the issue, we take guidance from the decision of the Rajasthan High Court in the case of CIT Vs. Vijay Vargiya Vani Charitable Trust(supra.) wherein it has been held that at the time of granting registration u/s.12AA of the Act, the Ld. CIT(Exemption) should only look into the objects of the Trust. The issue regarding satisfaction of genuineness of the activities of the Trust is not a matter to be looked into at the time of granting registration u/s.12AA of the Act. That may be considered and decided accordingly at the time of assessment proceedings. Similarly, the Co-ordinate Bench of the Tribunal, Pune in the case of Kul Foundation Vs. CIT (supra.) has specifically observed the intricacy w....