TaxTMI 
TaxTMI 
2021 (11) TMI 632
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....binding judgments of the Honourable Apex court and jurisdictional High Court on similar facts. 03 The brief facts of the case shows that the assessee trust has the aims and objects to serve the society to provide medicine in Aushadhalaya, to promote education, to open dispensaries, college and technical education institutes for propagation of education, to provide books and scholarships to poor and needy students, to work for promotion of sports and to alienate dowry system from society. The assessee applied for registration u/s 12 A of The Income Tax Act by filing form number 10 A on 14/2/2017. The trust is in operation since 29/4/2013. 04 The learned CIT - E raised certain inquiries, which was replied on 8/8/2017. Further queries were raised by the letter dated 24/8/2017, which was replied on 26/8/2017. 05 The assessee submitted that it does not own any land and building but has building under construction amounting to Rs. 1,136,484/- the learned CIT E asked that how it is possible to run Goushala, Dental laboratory and Aushadhalaya in absence of any building. Assessee submitted that that the land and building are owned by Baba Kanakpuri and it has been given to the trust with....
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....ould not be termed to be falling within the realm of charitable purposes. He further held that the applicant has not been able to prove pursuance of its objects and the genuineness thereof. Thus, he rejected the application of the assessee for registration u/s 12 AA of the act by passing the impugned order. The appellant applicant trust is aggrieved with that and has preferred this appeal. 06 The learned authorised representative submitted that assessee is constructing a Satsang Bhavan on the land, which is owned by Baba Karanpuri. This land is given by the trustee for the use of the charitable activities of the trust. It was further stated that there is complete details available by submitting the balance sheet etc where the said satsang Bhavan is under construction and it is financed through the corpus donation. The assessee trust is in existence since 29/4/2013 and has submitted the complete details by submitting the annual accounts. It was further stated that the donation has been shown under the head corpus donation. The accounts are audited. The learned CIT - E has noted that assessee is running Gaushala and dental laboratory and Aushadhalay. The ambulance that is being used....
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....of the act.The learned that AR also referred to the paper book filed by him and also relied upon several judgments placed therein. He also referred to several communications and replies of the assessee submitted before the learned CIT E. 07 The learned CIT DR vehemently supported the order of the learned CIT - E and submitted that there are certain infirmities pointed out by the registering authority and therefore the trust is denied registration u/s 12AA correctly. He extensively referred to paragraph number 7 of the order. 08 We have carefully considered the rival contention and perused the order of the learned and CIT - E passed on 31/8/2017 rejecting the application for registration u/s 12AA of the act of the trust. We have also considered the paper book filed by the learned authorised representative as well as several judicial precedents relied upon. The facts clearly shows that that assessee is a trust which is running (1) Dharmarath Aushadhalaya (2) Guashala (3) Bhandara (4) Satsang (5) Bhakti Lectures . Assessee has also started constructing Satsang Bhavan . land & building sheds are owned by the trustee namely Baba Karanpuri Ji and same has been given to the trust withou....
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....Oriental Bank of commerce from 8 May 2013 to 31/3/2017. It further provided the register of outdoor patients before him. From the above activities it is apparent that assessee is carrying on charitable activities as envisaged u/s 2 (15) of the act. 10 Coming to the objections of the learned CIT - E we find that assessee has given a detailed explanation with respect to the land and building which is owned by the trustee and on which satsang Bhavan is constructed. Further the contractor's account was also produced which shows that the initially some amount was given for the construction activity however the contractor returned the sum and later on the trust carried on the construction activities by looking at alternatives. The amount was received from the contractor through account payee cheques and same were also given earlier to him through account payee cheques. Therefore we do not find any merit in the finding of the learned CIT -E that the transaction with Mr Surinder Sukhija prevents assessee from getting registration u/s 12 AA of the act. Further the assessee has submitted the bank account since beginning. The amount is deposited after demonetization which were lying in the g....