2021 (3) TMI 83

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....y a Trust Deed dated 09.02.2009. The object of the Trust, as per the Trust deed, is to establish/promote/set up/provide/maintain/assist/running of schools, Islamic educational centres, Arabic and Islamic religious classes, Quran and Hadis coaching classes, institutions for orphanages/widow homes to promote and to set up hospitals, dispensaries etc., According to the Revenue, the Trust did not produce any report with regard to the activities in support of their contentions. The assessee Trust filed an application for registration under Section 12 AA and approval under Section 80G(5) of the Income Tax Act, 1961 on 09.06.2009. Though several opportunities were given by the Commissioner of Income Tax (hereinafter referred to as 'CIT') t....

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.... under Section 12AA of the Act, even though without considering the amendment of the Act with effect from 01.04.1997 whereby Section 12AA was introduced making it mandatory for the Commissioner to conduct necessary enquiry in this regard and to grant registration only if he satisfied about the genuineness of the Trust? T.C.A.No.402 of 2011: Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in directing the Commissioner of Income Tax to grant approval of Section 80G(5) of the Income Tax Act to the assessee Trust, even though it is found that the Trust is not genuine one and is not engaged in any charitable activity? 4.It is not in dispute that the Trust was cons....

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.... such a condition for grant of registration. On the other hand, Section 12AA (1) contemplates satisfaction of the Commissioner about the objects of the Trust and the genuineness of the activities and make such enquiry as may be necessary for the purpose of grant of registration. In so considering the application, the Commissioner has to give an opportunity to the assessee as provided for under proviso to sub-section (1) of Section 12AA. Under sub-section (3) of Section 12AA, the Commissioner is given power to cancel the registration, if he satisfies that the objects of such Trust are not genuine or not being carried on in accordance with the objects of the Trust. When such an authority is vested with the Commissioner to ca....