2021 (8) TMI 508

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.... That the Ld. CIT (E) has erred in rejecting the application of the appellant to register the Trust U /S 12AA of the Income Tax Act. 2. That the Ld. CIT (E) has erred in rejecting the application of the appellant to register the Trust U /S 12AA of the Income Tax Act on irrelevant grounds. 3. That the Ld. CIT (E) has erred on facts as well as in law by erroneously concluding that the Company has violated Section 13(1)(c) read with Section 13(3) of the Income Tax Act, 1961. 4. That the Ld. CIT (E) has erred on facts as well as in law by erroneously concluding that the Company has failed to conduct / charitable activities and has ignored / failed to consider the facts and evidence on record in respect of the charitab....

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....ore the Tribunal by challenging the impugned order passed by ld. CIT(E) by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. Undisputedly, assessee company being registered u/s 8 of the Companies Act, 2013 came into existence on 13.06.2017 and filed the application for registration u/s 12A (a) of the Act on 08.07.2017. It is also not in dispute that ld. CIT (E) has not disputed the objects of the assessee trust being charitable in nature. It is also not in dispute that assessee trust has been paying salary ofRs. 40,000/....

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.... Karnataka in case of Director of Income Tax (Exemptions) vs. Meenakshi Amma Endowment Trust (2013) 354 ITR 0219 decided the identical issue in favour of the assessee trust by returning following findings :- "6. A trust could be formed today and within a week registration under Section 12A could be sought as there is no prohibition under the Act seeking such registration. The activities of the trust have to be considered if such registration is sought much later than the formation of the trust or after expiry of the earlier registration granted in favour of the trust. Therefore in a case of this nature where the trust has approached the authority for registration under Section 12A within a span of eight months of its forma....

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....a trust, set up to achieve its objects of establishing educational institution, is in the process of establishing such institutions, and receives donations, the registration under Section 12AA cannot be refused, on the ground that the Trust has not yet commenced the charitable or religious activity. Any enquiry of the nature would amount to putting the cart before the horse. At this stage only the genuineness of the objects has to be tasted and not the activities, which have not commenced. The enquiry of the Commissioner of Income Tax at such preliminary stage should be restricted to genuineness of the objects and not the activities unless such activities have commenced. The Trust or society cannot claim exemption, unless it is registered u....