TaxTMI 
TaxTMI 
2025 (8) TMI 1044
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....l question of law for admission. Heard on admission. 3. The respondent / assessee applied for registration under Section 12AA of the Income Tax Act, 1961 in form No.10A on 30/03/2019 which was rejected by the Commissioner, Income Tax (Exemption), Bhopal vide order under Section 12AA (1) (b) (ii) dated 27/09/2019 against which an appeal was preferred before the Income Tax Appellate Tribunal (ITAT) Indore Bench, Indore. Learned ITAT allowed the appeal vide order dated 27/10/2021 and set aside the order of the Commissioner, Income Tax (Exemption) and directed the Commissioner, Income Tax (Exemption)/competent authority to grant registration under Section 12AA of the Act. 4. Learned counsel for the appellant would submit that the ITAT was....
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.... of the requirements under sub-clause (ii) of the said clause, and has to pass an order in writing registering the trust or institution and a copy of the order so passed will be sent to the applicant. 8. The Supreme Court in the matter of Ananda Social and Educational Trust v. Commissioner of Income Tax and another, (2020) 17 SCC 254 held that newly registered trust on basis of its objects, without any activity having been undertaken, is entitled for registration under Section 12AA of the Act, and observed as under: - "9. Section 12-AA undoubtedly requires the Commissioner to satisfy himself about the objects of the trust or institution and genuineness of its activities and grant a registration only if he is so satisfied. The sa....
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....ins to the registration of the trust and not to assess of what a trust has actually done, we are of the view that the term "activities" in the provision includes "proposed activities". That is to say, a Commissioner is bound to consider whether the objects of the trust are genuinely charitable in nature and whether the activities which the trust proposed to carry on are genuine in the sense that they are in line with the objects of the trust. In contrast, the position would be different where the Commissioner proposes to cancel the registration of a trust under sub-section (3) of Section 12-AA of the Act. There the Commissioner would be bound to record the finding that an activity or activities actually carried on by the trust are not genui....
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....ing officer is not convinced it is always open for him to decline grant of exemption." 10. In the case in hand, the ITAT, vide impugned order observed that the object of the assessee trust meant for benefit of pharma dealers would undoubtedly fall within the fourth limb of Section 2 (15) of the Act. Some of the observations are quoted below - 8.7 We find that the Hon'ble Supreme Court in CIT v. Gujarat Maritime Board (2007) 295 ITR 561 has held that "when an object is to promote or protect the interest of a particular trade or industry that object becomes an object of public utility. Similar view expressed in CIT v. Andhra Chamber of Commerce (1965) 55 ITR 722 (SC). 8.8 In the light of ratio of various decisions, some o....