TaxTMI 
TaxTMI 
2021 (10) TMI 677
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....stead of waiting for 09.07.2020 the assessee on 26.06.2020 itself filed complete reply to the query raised through questionnaire and in this respect our attention was invited to P.B. pgs. 65 to 299 wherein the various annexures including copy of PAN card, Form-10A, note on activities, copy of ITR for three years along with their audit reports and copy of trust deed along with list of trustees and note on activities conducted during last three years was placed. The ld. AR then took us to PB pg. 300 where confirmation regarding the detailed reply submitted through online on 26.06.2020 was placed. The ld. AR further took us to PB, pg. 301 where the assessee had sought time for making further submissions and for making changes in the trust deed through supplementary trust deed. The ld. AR then took us to PB pgs. 306 to 326 where a copy of reply dated 17.08.2020 filed through email with the ld. CIT(E) and enclosing proof of submission of earlier reply dated 26.06.2020 was placed and also copy of books of accounts submitted to the ld. CIT(E) was placed. The ld. AR also took us to PB pg. 327 where a copy of reply placed dated 17.08.2020 filed in hard copy on 18.08.2020 was placed. Ld. AR ....
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....3. The ld. CIT, DR on the other hand, heavily placed reliance on the order of ld. CIT(E) and submitted that while granting registration u/s. 12AA of the Act. ld. CIT(E) is empowered to require the assessee to demonstrate the activities carried out by it and ld. CIT(E) has clearly held that other then routine expenses no significant charitable activities was carried out as was apparent from the copy of Income and Expenditure Account submitted to him and therefore it was prayed that the appeal filed by the assessee may be dismissed. 4. We have heard the rival parties and have perused the material placed on record. We find that assessee filed application for registration u/s. 12A of the Act on 22.01.2020 and first date of hearing was fixed on 23.06.2020 but on that date the assessee filed adjournment application a copy of which is placed at PB pgs. 47 and the ld. CIT(E) fixed next date of compliance on 09.07.2020. Copy fixing such date is placed in PB 48. However, before the date of 09.07.2020 the assessee filed reply to all the queries raised by ld. CIT(E) a copy of which is placed in PB pg. 49 to 299. Such reply includes copies of ITR for earlier three years along with copy of au....
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.... clearly demonstrate that assessee did carry out the charitable activities. Before us in the form of additional evidences, the assessee has filed the Income and Expenditure Account and balance sheet for the FY 2019-20 along with the expenditure on charitable activities undertaken during that year but which we do not deem it necessary to take on record for the purpose of considering registration to the assessee as Hon'ble Supreme Court in the case of Ananda Social & Educational Trust (Supra) has clearly held that the charitable activities includes the proposed activities also and while granting registration to the assessee u/s. 12AA of the Act, the ld. CIT(E) is required to examine the genuineness of activities including the proposed activities. The findings of Hon'ble Supreme Court in the case of Ananda Social & Educational Trust (Supra) are reproduced below: "10. It was argued before us that the Commissioner is required to be satisfied about two things firstly that the objects of the trust and secondly, its activities are genuine. If there have been no activities undertaken by the trust then the Commissioner cannot assess whether such activities are genuine and th....
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....247 ITR 18. That view however does not commend itself. However, the facts in Self Employers Service Society (Supra) suggest that the Commissioner of Income Tax had observed that the applicant for registration as a Trust had undertaken activities which were contrary to the objects of the Trust. 16. In the result, we find that there is no reason to interfere with the impugned judgment of the High Court of Delhi. The appeal is, accordingly, dismissed. CIVIL APPEAL NO.1727/2020 (@SLP(C) NO.25761/2015) 17. Leave granted 18. In this case, the Trust which applied for registration under section 12AA of the Income Tax Act, 1961, was found not to have spent any part of its income on charitable activities. The Commissioner of Income Tax, therefore, refused the registration of Trust. 19. The Income Tax Appellate Tribunal reversed the decision of the Commissioner of income Tax on the basis of the judgment of the Delhi High Court in matters referred to above. 20. For the reasons stated earlier, we are of the view that the object of the provision in question is to ensure that the activities undertaken by the Trust are not contrary to its objec....