2019 (9) TMI 1465

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....stration under section 12AA of the Act vide order dated 20.02.2018. However, as far as the application of the assessee seeking recognition under section 80G was concerned, a letter was issued to the assessee calling for the details vide letter dated 16.10.2017 and on verification of the details filed, the genuineness of the activities for grant of approval under section 80G(5)(vi) of the Act cannot be verified. The learned CIT(E) has further referred to the decision of the Hon'ble Kerala High Court in the case of Self Employed Institution vs CIT 247 ITR 18. 3. Against the said order, the assessee is in appeal before us. In this regard, the learned AR submitted that the assessee is a newly set up public charitable trust constituted under ....

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....t many years. Further, as far as the objects of the appellant trust are concerned, given the fact that the appellant has been granted registration under section 12AA, the objects being "advancement of any other object of general public utility" in nature have been verified by the learned CIT(E) while granting the registration under section 12AA of the Act and are thus not in dispute. As far as the genuineness of the activities of the assessee trust is concerned, in our view, the said requirement has to be seen in the context of the establishment of the trust. Where the trust has been set up in the past and has been carrying out its activities at the time of moving the application, then it is no doubt true that while granting the registratio....

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..... A similar view has been taken by the Co-ordinate Bench in the case of OLA Foundation vs CIT(E) (ITA No.215/Bang/2018 dated 26.10.2018) wherein it was held as under: "10. We have carefully considered the rival submissions. It is not in dispute that the CIT(E) himself has granted registration to the assessee u/s 12A of the Act and therefore, the CIT(E) was satisfied that the objects of the trust were charitable and that its activities were genuine as this is a condition for grant of registration u/s.12A of the Act. As per the requirements of Rule 11AA(5) of the Rules, it is incumbent on the part of the CIT(E) to spell out the conditions mentioned in sec. 80G(5) which has not been fulfilled by the assessee. Therefore it can be safel....

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....n of grant of approval u/s 80G was not justified. Keeping in mind the aforesaid decisions and the facts of the present case, we are of the view that the CIT(E) ought to have granted the approval u/s.80G(5) of the Act. We accordingly direct that the approval u/s.80G of the Act be granted to the Assessee." 7. In light of above discussion and respectfully following the aforesaid decision of the Coordinate Bench which has followed the legal proposition laid down by the Hon'ble Karnataka High Court, we hereby direct the learned CIT(E) to grant the registration to the assessee trust under section 80G of the Act. 8. In the result, appeal of the assessee is allowed in light of above directions. Order pronounced in the open Court on this 20....