TaxTMI 
TaxTMI 
2025 (8) TMI 1043
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....swered in this tax appeal preferred under Section 260A of the Income Tax Act, 1961 (for short, 'the IT Act') states as under:- "Whether the ITAT is justified in reversing the order of CIT(Exemption) holding that the assessee is entitled for registration under Section 12AB of the Income Tax Act by recording a finding perverse to the record?" 3. The aforesaid substantial question of law has to be answered in the following factual backdrop:- 4. The assessee Trust was granted provisional registrations under Sections 12AB & 80G (5) of the IT Act by the Centralised Processing Centre (CPC) on 10-3-2022 and thereafter, the assessee Trust further applied for regular registration under Section 12AB read with Section 80G(5) of the IT Ac....
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.... or clause (ab) of sub-section (1) of section 12A, shall- (a) xxx xxx xxx (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities as required under sub-clause (i) of clause (a) and compliance of the requirements under sub-clause (ii) of the said clause, he- (i) shall pass an order in writing registering the trust or institution; (ii) xxx xxx xxx and a copy of such order shall be sent to the applicant:" 9. A careful perusal of the aforesaid provision would show that the Principal Commissioner or the Commissioner has to satisfy himself about the objects of the trust or institution and the genuineness of its activities as required ....
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.... such activities are genuine and therefore, the Commissioner is bound to refuse the registration of such a trust. 11. We have given our anxious consideration to the above submissions made by Ms Aishwarya Bhati, the learned Senior Counsel appearing for the appellant Director of Income Tax and find that it is not possible to agree with the same. The purpose of Section 12-AA of the Act is to enable registration only of such trust or institution whose objects and activities are genuine. In other words, the Commissioner is bound to satisfy himself that the objects of the trust are genuine and that its activities are in furtherance of the objects of the trust, that is equally genuine. 12. Since Section 12-AA pertains to the regi....
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....tion 12AA of the Act is to claim exemption under Sections 10 and 11 respectively of the Act, as the case may be. Therefore, before seeking registration, it is essential that the Trust should adduce cogent material to the satisfaction of the Commissioner that the activities are genuinely charitable in nature. 15. To the aforesaid extent there is no problem. We may only say that mere registration under Section 12-AA automatically does not entitle any charitable trust to claim exemption under Section 10 and 11 respectively of the Act, 1961. When a return is filed by any trust claiming exemption it is for the assessing officer to look into all the materials and satisfy itself whether the exemption has been claimed genuinely or not. If ....