2017 (2) TMI 1479

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....Act, 1961 of the appellant company: i. on the pretext of the appellant company not having carried out any charitable activities. ii. in holding that Registration u/s. 12AA cannot be granted unless the trust has really carried out charitable activities. iii. in not considering the actions of the appellant company of applying to the State Govt. and State Govt. departments for allotment of a suitable land for its proposed charitable hospital and in turn signing an MOU with the state govt. for the purposes on the insistence of the state govt. and further consequent to which JDA had shortlisted and made an allotment of Land to the Company, which under certain conditions was not accepted by the company on technical. ....

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.... law in not following the judgment of the Jurisdiction High Court in the case of CIT v. Vijay Vargiya Vani Charitable Trust (2015) 58 taxmann.com 335/232Taxman 340/(2014)369 ITR 360 (Raj.) which is binding on the subordinate court and authorities or Tribunals under its superintendence throughout the territories in relation to which it exercises under the Rule of Judicial Precedence. ii. In view of the aforesaid judgment of the jurisdictional High Court, when the objects incorporated in the Objects of the Company for which it has been incorporated are found to be genuine for carrying on charitable activities, it fulfills requirement of grant of registration under Section 12A and commencement of actual activities by the trust or registrati....

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....rmation then there is no prohibition under the Act seeking registration. In our view as observed earlier the only thing to be looked into at the time of granting of registration is that the object of the Trust or which it was formed have to be seen and examined, the CIT's satisfaction about genuineness of the activities of the Trust is not a criteria as the trust is yet to commence activities. Asking about charitable activities at the nascent stage would amount to putting a cart before the horse. In view of what we have observed hereinabove, in our view the Tribunal rightly directed the commissioner for granting registration u/sec. 12AA of the Act and in our view reading of plain language of Section 12AA, no substantial question of....