TaxTMI 
TaxTMI 
TaxTMI 
2022 (4) TMI 550
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has erred both in law and on facts in rejecting the application filed by appellant in Form 10 seeking Registration U/s. 12A of the Act. 2. The Ld. CIT(E), Hyderabad ought to have properly appreciated that the appellant has fulfilled all the requirements as envisages in section 12AA of the Act, in essence and substance and as such have held that, the appellant is eligible for grant of Registration U/s. 12A of the Act. 3. The very observations, averments, grounds and adverse remarks in the impugned order at S.No. 3 to 10 and sub-points thereof along with case laws mentioned therein, while rejecting the application filed by the appellant, are basing merely on surmises, conjectures, presumptions, assumptions and apprehensions, without prop....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Vocational Training 8. Skill Development 9. Child care and nutrition." 4. The Trust applied for grant of registration u/s. 12AA on 22/3/2019 before the Ld. CIT(Exemptions), Hyderabad. Registration U/s. 12AA was rejected on the ground that the assessee trust has been formed by the settler M/s. Apex Frozen Foods Ltd., only for the purpose of carrying out its CSR activities. While rejecting assessee's application for registration, the Ld. CIT(A) also observed that the assessee has violated the provisions of section 13 of the IT Act and also the CSR expenditure is not allowable under the Act. The Ld. CIT(E) in para 9.2 of his order has observed as under: "9.2............However, the corporates wants to circumvent these provisions so th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (ii) Nanak Chand Jain Charitable Trust vs. CIT (Exemptions), Chandigarh [2018] 91 taxmann.com 197 (Delhi - Trib.)] (iii) St. Mary's Medium School Society vs. CIT (Exemptions), ITA No.2060/H/2018, dated 25/02/2022 (Visakhapatnam -Trib) 6. Per contra, the Ld. DR submits that the Ld. CIT (E) has rightly rejected the application of the Trust as the objects of the Trust were not charitable in nature. The Ld. DR also argued that in order to circumvent the disallowance U/s. 37(1) the assessee has formed a Trust for its CSR activities. 7. We have heard both the parties and perused the materials available on record. It is noted that the main aim of forming the Trust is for complying with the CSR requirements. Accordingly, if a Trust is formed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ut having registration U/s. 12AA of the Act. The Ld. CIT(E) also observed that w.e.f 1/9/2019, compliance of law for the time being in force by the Trust is mandatory. In our opinion, the Ld. CIT(E) has not looked into the objectives of the society but relied on the wrong claim made in earlier years by the assessee. The procedure for registration U/s. 12AA is extracted below for reference: "Procedure for registration. 12AA. (1) The Principal Commissioner or Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) or clause (aa) or clause (ab) of sub-section (1) of section 12A, shall- 54[(a) call for such documents or information from the trust or institution as he thinks necessary in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) or clause (ab) of sub-section (1) of section 12A. (3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] and subsequently the Principal Commissioner or Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the reg....