2019 (7) TMI 1722

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.... Assessee is stated to be a Trust registered under the Bombay Public Trusts Act, 1950 vide registration number A-8586/Thane dated 10.02.2014. It had applied for registration u/s 12AA of the Act on 26.03.2014 before CIT-I, Thane. Vide notification No.53/2014 dt.22.10.2014 the CBDT created the Exemptions charge and the new jurisdiction was vested with the Commissioner of Income Tax (Exemptions)-Pune. Assessee submitted that no reply was received either from CIT-I, Thane or CIT(E), Pune regarding the acceptability or otherwise of the application filed by the assessee. Assessee thereafter electronically again applied for registration vide application dated 31.08.2018 before CIT(E), Pune. CIT(E), Pune vide order dt.28.02.2019 rejected the app....

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....12 of the Act, the activities of the Trust or the Institution must be charitable or for religious purposes. The conditions for applicability of Sec.11 and 12 are provided u/s 12 A and one of the conditions is that the person in receipt of the income which he claims to be for charitable purposes has to make an application for registration of the Trust or the Institution in the prescribed form and in the prescribed manner to the Commissioner within the period stipulated therein. The procedure for registration of the Trust or the Institution by the Commissioner is provided u/s 12AA of the Act. Sec.12AA(1) requires the Commissioner to whom an application is made for the registration of a Trust or Institution to satisfy himself about the genuine....

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....of the ethical background of its settlers is called for while considering an application for registration. The stage for consideration of the relevance of the object of the trust and the application of its funds arises at the time of assessment. Where benefits are claimed by the assessee in terms of sections 11 and 12 of the Act, the question as to the nature of such contribution and income can be looked into. At the time of registration of the trust, going by the binding judgments of the apex court, what is to be looked into is whether the trust is a genuine one and whether it is a sham institution floated only to avail the benefits of exemption under the Act. There is no such finding in the impugned order." 5. In the present case, we f....